E-Rate 101: Basics of the program

Fall 2007

Pam Pfitzenmaier

515-669-8159

pam.pfitzenmaier@iowa.gov

What is E-rate?

• Discount Program for Schools and Libraries• 20-90% discounts on telecommunications

services, Internet access, internal connections and maintenance for internal connections

• Annual $2.25 billion program nationwide• NOT a competitive grant program

Who is eligible to participate

• Libraries

• Schools

Library Eligibility

• Non-profit, public libraries

• Eligible for LSTA (Library Services and Technology Act)

• Can be:– single library– consortia– library system

School Eligibility

• All public schools:– school districts– AEAs

• “Other school programs” as determined by Iowa Department of Education (see DE Directory)

• Non-profit, private K-12 schools with endowment of $50M or less

• Must meet federal definition of elementary or secondary school

What is My Discount?

Two criteria make up discount:

• Poverty• Location

Poverty

• Based on National School Lunch Program Eligibility

• As a school, you are allowed to use October 1 data or “most current figure available”

• Libraries use discount from school district in which they are located.

Location Location • Urban/Rural defined

by Counties

Iowa counties which are urban:

• Black Hawk• Dallas• Dubuque• Johnson• Linn• Polk• Pottawattamie• Scott• Warren• Woodbury

Discount Matrix

Percent of Eligible Students

Urban Rural

Less than 1% 20% 25%

1% - 19% 40% 50%

20% - 34% 50% 60%

35% - 49% 60% 70%

50% -74% 80% 80%

75% -100% 90% 90%

What is funded through e-rate?

• Four categories of service– Priority 1 (funded first)

• Telecommunications Services• Internet Access

– Priority 2 (starts with neediest applicants)• Internal Connections• Basic Maintenance of Internal Connections

Eligible Telecommunications (priority 1)

Eligible Telecommunications (priority 1)

MUST be provided by regulated telecommunications carrier

e.g.– local & long distance– distance learning (such as ICN video)

Including all taxesand surcharges!

Eligible Telecommunications (priority 1) cont.

• VoicemailVoicemail

• Satellite dish service for 2-way Satellite dish service for 2-way communications (NOT satellite TV communications (NOT satellite TV subscription)subscription)

• Cell phone service Cell phone service

• CentrexCentrex

Eligible Services: Internet Access (priority 1)

Eligible Services: Internet Access (priority 1)

• Internet Access Services

• Web hosting service

(Eligible Services: Internal Connections priority 2)

(Eligible Services: Internal Connections priority 2)

– Wiring– Routers– Switches– Hubs– Network servers– System operating

software– Wireless LANs– Private branch

exchange (PBX)

Eligible Services: Maintenance of internal connections (priority 2)

• Maintenance of previously purchased internal connections (does NOT include end-user equipment such as computers)

Proposed changes for FY 08

• Centrex as basic phone service

• How distance learning and video conferencing may be eligible as Internet Access

• A definition of eligible web hosting

Discounts come in 2 forms:

– Discounts on bills OR– Reimbursements

from service provider (service provider gets reimbursed by USAC)

How Discounts Work

$100 (existing) bills you would pay You apply to for discounts

You get 55% in discounts

You now only owe $45

The vendor’s bill drops by $55

Vendor gets $55

from SLD!

Vendor invoices USAC/USAC approves

invoice

How Discounts Work

How Reimbursements Work

10/9/2007 CDE/VET/E-rate/CTF 2000-2001 (BEGINNER)

$100 (existing) bills you would pay You apply to for discounts

You get 55% in discounts

You apply for reimbursement

You pay 100% of bill

Vendor sends

you $55!

USAC approves paperwork/sends check to

vendor

How Reimbursements Work

General rules of e-rate

• Competitive bid on SLD web site for 28 days

• Application in ‘window’ to SLD each year• SLD funds on rules of priority

– Priority 1: Telecom and Internet Access– Priority 2: Internal Connections and Maintenance

“2 in 5 Rule”

• Applies only to internal connections (priority 2)

• An applicant can only get internal connections funding in 2 out of 5 years

• Questions about this? Give me a call.

Fair Warning!

• Not an easy process• Lots of paperwork• Rewards can be great!

What about the tech plan?

• Must contain required 5 elements

• Must be written before filing the 470

• Applicant must be able to provide the plan and proof of the date it was written when asked by PIA

• 4 of the 5 elements are in your approved district/school CSIP

More on tech plans

• The Iowa Department of Education has provided a template which needs to be completed and sent to the AEA by November 1

• When you e-mail that, copy yourself to keep an electronic paper trail for use when/if PIA asks

More on Tech plans

• USAC (PIA) has started asking to see–Your approved tech plan

–Your tech plan approval letter

What to say about the budget

• Statement such as, “During the 2006-07 school year, our district spent $XXXX on hardware, software and professional development to support e-rate activities. We used $YYY from the General Fund and $ZZZ from Title I and $JJJ from other grants. We anticipate our district will spend the same amount in 2008-09 and will use the same funding sources.”

More about budgeting

• If planning to request E-rate funding for internal connections, indicate where the non E-rate $s will come from.

Tip 1: Get organized

• Create a notebook

Tip 2: Get frequent updates

• Listserv:

• AEAUSF@iptv.org

• USAC offers frequent updates

Tip 3: Get support!

• Have a backup person in your district/library

• Build support with your business office, supt/director and tech person

• Contact your AEA e-rate expert

Who are the E-rate players?

• Congress• FCC (Federal Communications

Commission)• USAC (Universal Services

Administrative Company)• SLD (Schools and Libraries

Division)

Now You Know the Rules….Let’s Walk Through the

Application Process

Application Process at a Glance:

1. Form 470: Now until on or about December 1.

2. Wait 28 days! Must wait that long!

3. Form 471: “window” opens in November and closes in February (dates not yet set)

4. Wait for questions from PIA

5. Funding commitment decision letter

6. Form 486: file to confirm services

7. If getting reimbursements, form 472

Form 471

Form 471: “window” opens in November and closes in February (dates not yet set)

Next steps

Wait for questions from PIA, e.g. Questions about your funding request Verification of your discount Copy of tech plan and/or approval letter

Funding commitment decision letter File form 486

Online form 486

• New online 486 version

• Improved over earlier version but still has technical glitches

• If you have technical issues, call 1-888-203-8100 and report them

Reimbursements?

• Must file form 472(BEAR form which is now available in online version)–Rumor has it that small providers

won’t participate in the online BEAR

• If filing on paper, must use most recent version

Year 2008-09 Details (funding year 2008)

• 7/1/2008 - 6/30/2009 services provided

• Application “window” opens at least 30 days after Eligible Services List is released by FCC

• If you don’t file form 471 by deadline, funding will be denied (although Bishop Perry decision has altered some denials)

Resources to Remember

• SLD web site: www.universalservice.org/sl/• SLD Client Service Bureau: 888-203-8100

• www.iptv.org/iowa_database/erate

• pam.pfitzenmaier@iowa.gov• 515-669-8159