Last week, Federal Communications Commission (FCC) chairman William Kennard announced another big-government money grab. He wants to increase annual subsidies for wiring schools and libraries from about $1.3 billion to $2.25 billion--a massive 73 percent hike.

Contrary to its deregulatory efforts, the Telecommunications Act of 1996 foolishly expanded "universal service" subsidies to include wiring schools and libraries for the Internet, and allowed the FCC to determine how much it would cost. That is, the FCC is empowered to set and raise taxes on telephone consumers, including small businesses. This was nothing less than an abdication of responsibility by Congress and the White House.

The merits of wiring public schools for the Internet is, to say the very least, a dubious proposal. (See SBSC chief economist's Raymond J. Keating's May 11 "Carolan & Keating" column for Newsday at www.newsday.com/mainnews/carokeat.htm regarding schools and the Internet.) But I such steps are going to be taken, then decisions should be made and financed at the local level.