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
• 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 Less than 1% 1% - 19% 20% - 34% 35% - 49% 50% -74% 75% -100% Urban
20% 40% 50% 60% 80% 90%
Rural
25% 50% 60% 70% 80% 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)
MUST be provided by regulated telecommunications carrier e.g.
– local & long distance – distance learning (such as ICN video)
Eligible Telecommunications
(priority 1) cont.
• Voicemail • Satellite dish service for 2-way communications (NOT satellite TV subscription) • Cell phone service • Centrex
Eligible Services: Internet Access (priority 1)
• Internet Access Services • Web hosting service
(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)
$100 (existing) bills you would pay
How Discounts Work
You apply to for discounts
You get 55% in discounts
How Discounts Work K
The vendor’s bill drops by $55 Vendor invoices USAC/USAC approves invoice You now only owe $45
Vendor gets $55 from SLD!
J
you would pay
$100 You get How Reimbursements Work55% (existing) bills in discounts You apply to for discounts
How Reimbursements Work
K
You pay 100% of bill Vendor sends you $55! USAC approves paperwork/sends check to vendor
You apply for reimbursement
10/9/2007
CDE/VET/E -rate/CTF 2000 -2001 (BEGINNER)
J
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