Late E-RATE Payments by Treasury Hurting ASTCA

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Late payments by ASG Treasury to the American Samoa Telecommunications Authority for the E-RATE program which provides internet service to public and private schools is impacting ASTCA finances.

E-RATE pays 90% of the costs and the local government pays 10%.

ASTCA’s Chief Financial Officer Jason Betham explained at a hearing of the House Communications Committee this week that unless Treasury pays the 10% share for E-RATE, ASTCA cannot bill the federal program.

He said E-RATE imposes penalties if ASTCA fails to provide monthly billing, but if Treasury is not paying the 10% share ASTCA cannot bill and get paid the 90% cost for E-RATE.

Betham said Treasury is just now paying E-RATE money due in October of last year.

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