SCHOOLS CHIEF JACK O’CONNELL ANNOUNCES TECHNOLOGY FUNDS AVAILABLE FOR LOCAL SCHOOLS

Settlement of Microsoft Lawsuit Provides Millions for Education Technology

SACRAMENTO — State Superintendent of Public Instruction Jack O’Connell today announced that hundreds of millions of dollars will soon be available for California schools to purchase technology, including computer hardware and software. The technology funds, which will be distributed to schools through the California Department of Education’s Education Technology K-12 Voucher Program, are available as a result of a settlement agreement in an antitrust case against Microsoft Corporation.

"Technology in the classroom can be used strategically to improve student achievement and help prepare our students for success in the competitive global economy of the 21st century," O’Connell said. "This settlement agreement provides a wonderful opportunity to close the digital divide in many of our schools. I encourage all eligible schools to work with their district offices as they apply for these funds."

Per the settlement agreement, a fund was established, called a cy pres fund, to offer vouchers to public schools that can be used to purchase computer hardware, software, or for technology maintenance, professional development or other related services. Although the exact amount available in the cy pres fund is not yet known, it is estimated to be from $400 million to $600 million. The vouchers also can be used to purchase equipment needed for computer networks and technology infrastructure.

"California’s businesses and consumers had the option to claim their settlement benefits for themselves or donate two thirds of their benefits to the public schools by simply declining to file a claim," said Richard Grossman, co-lead attorney for the consumer class, and partner in the San Francisco office of Townsend and Townsend and Crew that was appointed by the California Superior Court to oversee the antitrust case against Microsoft on behalf of California's businesses and consumers. "Because of their extraordinary generosity, hundreds of millions of dollars will go to our public schools.We are proud to have led the legal battle that achieved such a fabulous result."

Public school districts that have state-approved technology plans may apply on behalf of eligible schools. Eligible schools include all public kindergarten through grade twelve schools, county offices of education, charter schools, and State Special Schools in which at least 40 percent of the attending students are eligible to receive free or reduced-price meals through the National School Lunch Program (NSLP). Public high schools that serve students from public elementary, middle, and junior high schools in California at which at least 40 percent of the attending students are eligible to receive free or reduced-price meals through NSLP are also eligible to apply for the technology funds.

"We’re very pleased that this agreement will directly benefit disadvantaged students in California who otherwise have limited access to technology in their schools," said Tom Burt, corporate vice president and deputy general counsel for Microsoft. "This settlement not only will equip California schools with hundreds of millions of dollars of hardware, software and services; it also will equip students with the skills they’ll need to succeed in a world that increasingly places a premium on technological literacy."

The vouchers must be redeemed by schools within six years of issuance of the voucher. The total dollar amount to be distributed to eligible schools via the vouchers will be derived from a formula that is based on the cy pres fund amount and the number of completed applications from eligible entities. The per pupil voucher amount is estimated to be between $98 and $159 per pupil, depending on the total amount of funding and the total amount of completed applications.

The California Department of Education (CDE) will issue the request for application (RFA) to districts, and all districts that successfully complete the application will be funded. The RFA will be available in mid-September 2006. In recognition of district staffing and time constraints, the CDE has streamlined the application process to maximize district and school participation and benefit. As a result, the RFA is very simple and designed to take only about 15 minutes to complete.

For more information, please visit: Education Technology K-12 Voucher Program - State Technology Programs.