What’s New with E-Rate? December 2010

Contact information Pam Jacobs A copy of the powerpoint is available at erate/

What’s changed? 1.Tech plans no longer required for priority 1 2.New E-rate forms (470 and 471) with Item 21 required to be completed by 471 deadline 3.New “gift” rules 4.SPIN change restrictions 5.Leased dark fiber is now E-rate eligible 6.E-rate funding “cap” now adjusted for inflation 7.After-hours computer lab/Internet use now allowed for community members

Tech plans no longer required for priority 1 Tech plans are only needed if filing for priority 2 services. THIS IS NEW! (previously everyone had to do tech plans). If your district/school/library has a free/reduced lunch eligibility of 40% or more, then I recommend doing a tech plan (possibility of getting priority 2 funded)

Discount Matrix Percent of Eligible Students UrbanRural Less than 1%20%25% 1% - 19%40%50% 20% - 34%50%60% 35% - 49%60%70% 50% -74%80% 75% -100%90%

New E-rate 470 form The new version of the Form 470 is much simpler than the current version. Until the new version of the Form 470 becomes available in January, applicants may use the current version. –Caution: If using the old version of Form 470, do NOT check box 20c! (you still must indicate that you have a tech plan)

New E-rate 471 Form Unlike the new Form 470, the new Form 471 is not simpler. –The revised Block 2, requiring information on the impact of services ordered, asks specifically for bandwidth data on buildings served. –Block 4 includes two additional columns to capture information on entity types. Most importantly, the new version specifies that Item 21 attachments “must be filed before the close of the filing window.”

Form 471 block 4 data Question: What about preschool students who attend private preschools? Should we “count” them for E-rate? Answer: Only count preschool students who are in attendance in your buildings and for whom you have accurate free/reduced lunch data.

Problem with preschool data School NameFree/reduced lunch Enrollment% eligible King’s Kid Preschool 040% Jack and Jill Preschool 060% Kids’ First Academy 050% Creative Beginnings 070%

Gift Rules FCC limits “gift” amount to $20 per event for a total of $50 per year from any single vendor. Iowa Law is generally more restrictive than new FCC regulations (Iowa law is $2.99 per event). Vendors may donate to school foundations (charitable donations) so long as this doesn’t interfere with competitive bidding

SPIN changes To ensure competitive bidding processes are honored, FCC will limit reasons for SPIN changes (changing service providers in the middle of a funding year) SPIN changes will be allowed only for limited reasons (e.g. service provider cannot provide service). SPIN changes will not be allowed just because you can get a better price

Five categories of service –Priority 1 (funded first) Telecommunications Services Telecommunications NEW! Internet Access –Priority 2 (starts with neediest applicants) Internal Connections Basic Maintenance of Internal Connections

Leased dark fiber now eligible Allows leasing of dark fiber (unlit) from any provider (e.g. municipal utility) Maintenance of dark fiber by the provider is E-rate eligible too Applicant must then purchase the equipment to “light” the fiber Does not permit E-rate discounts for applicants that want to purchase/trench/own their own fiber links

Eligible Services: Telecommunications (priority 1): NEW CATEGORY Leased fiber or dark fiber (i.e. fiber is “lit” by the provider or is “lit” by the applicant) Apply for this on form 470 under 2 categories: telecommunications services and Internet

Eligible Services: Maintenance of internal connections (priority 2) Rules are changing about SMARTnet-type billing (must bill for actual hours not a service contract amount) Stay tuned for more clarity from FCC about SMARTnet

Where can we see the eligible services list? Answer: Eligible services list is at sl/pdf/ESL_archive/EligibleServicesLi st_ pdf sl/pdf/ESL_archive/EligibleServicesLi st_ pdf

E-rate Cap Current E-rate “cap” is $2.25 billion annually New rules adjust this cap for inflation (e.g for funding year 2010 it will be approximately $2.27 billion) Impact for Iowa? Perhaps a few more applicants will have priority 2 successfully funded

After hours use of Internet in computer labs Allows schools and districts to provide after hours access by public to E-rate funded Internet access in computer labs Rule change affects schools and districts (libraries already allowed public use of Internet!) Schools and districts are not required to provide access (voluntary) May charge for lights, heat, janitor but not for Internet access Schools/districts may not increase E-rate funded Internet solely for public use

Other items Do you have school buildings closing next year? Cost allocation issue…… Do you have school buildings which have students now but will be used as non- instructional facilities next year? Do you have new buildings opening?

Questions? Other issues????

Upcoming sessions January: Filing new online form 470 January: Filing new online form 471 Watch listserv for details!

Resources to Remember SLD web site: E-rate Central: Iowa E-rate: SLD Client Service Bureau: