Farrell Area School Board has given preliminary approval for administrators to pursue funding to upgrade technology.

The district is looking into applying for E-rate funding. The program, which falls under the Federal Communications Commission, was created by the Telecommunications Act of 1996.

The E-rate program, funded by a charge on telephone bills, is designed to give eligible schools and libraries affordable access to advanced telecommunications services.

Schools and libraries can receive discounts of 20 percent to 90 percent on phone bills, Internet access and internal connections.

Farrell is eligible for a 90 percent discount, based on its percentage of students eligible for the National School Lunch Program and designation as an urban school.

The district received an E-rate grant of nearly $1 million in the program's first year of funding -- 1998 -- to install computer network connections and a telephone system at the elementary-high school complex, but would be seeking a much smaller grant if it decides to ask for new money.

"Because of our financial problems, we're not going for a lot," said George Pedas, the district's technical education director.

The district wants to install a new telephone system at the John Hetra Child Development Center that ties into the one at the elementary-high school complex, and buy replacement parts for computer switching equipment.

Pedas estimated the work would cost $50,000, but no bids have come back to give the district a better idea of the cost.

Under E-rate, once a district preliminarily agrees to participate, it compiles a wish list, which is placed on the Internet and given to local providers, Pedas said.

Companies submit proposals to perform the work, and the district chooses one. The district does not have to choose the lowest bid, but has to justify its decision, Pedas said.

Lucent Technologies installed Farrell's connections and phone system under the first grant, and used pictures of the elementary school, Superintendent Richard R. Rubano Jr. and students and a quote from Rubano in A promotional pamphlet.

Even though the district can receive a lot of equipment and services for a fraction of the cost, that fraction means a lot of money to Farrell.

The district received a $996,906 grant in the first year of E-rate -- $891,198 for internal connections, $97,338 for telecommunication services and $8,370 for Internet access -- and had to pay 10 percent of the roughly $1.2 million project cost.

The district entered a six-year pay plan at a cost of $23,000 a year, officials said in 1998.

"Even at a 90 percent discount, you have to be careful," Rubano said.

The board and administrators will have to decide quickly whether they think the district can afford to apply; the next in a series of deadlines is Thursday.

"If we miss that date, we have to wait until E-rate (round) six," Pedas said. "In the next few days, we're going to be hammering Dick Rubano."