E-Rate 101: Basics of the program Fall 2009

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

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 Direct Certification Data is permitted (not just the number of students participating in NSLP) As a school/district, 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 UrbanRural Less than 1%20%25% 1% - 19%40%50% 20% - 34%50%60% 35% - 49%60%70% 50% -74%80% 75% -100%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 –Leased data circuits (e.g. T-1) Including all taxes and surcharges!

Eligible Telecommunications (priority 1) cont. Voic Voic Satellite dish service for 2-way communications (NOT satellite TV subscription)Satellite dish service for 2-way communications (NOT satellite TV subscription) Cell phone serviceCell phone service CentrexCentrex Blackberry-type serviceBlackberry-type service

Eligible Services: Internet Access (priority 1) Internet Access Services Web hosting service Blackberry-type 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)

Where can we see the eligible services list? Answer: Draft eligible services list is at tachmatch/DA A1.pdf

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 10/9/2007CDE/VET/E-rate/CTF (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 Price must be the single most important factor 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 “created” 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 annually provides a template. If you haven’t sent your tech plan addendum to the AEA, do so now! When you ed the plan, keep an electronic or paper trail for use when/if PIA asks for the creation date

More on Tech plans USAC (PIA) has started asking to see –Your approved tech plan –Date your tech plan was created (must be before form 470 is filed) –Your tech plan approval letter

What to say about the budget Statement such as, “During the 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 and will use the same funding sources.” Or use the board-approved budget for the school year and state that you anticipate similar budget in

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 with tabs: –Tech plan –Form 470 –Form 471 –Form 486

Tip 2: Get frequent updates Listserv: 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 usually 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 (BEAR)

Form 471 Form 471: “window” opens in November and generally 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

Reimbursements? Must file form 472(BEAR form) Available in online format Service provider must OK this form (they have access to the online BEAR form with their own PIN)

Year Details (funding year 2010) 7/1/ /30/2011 services provided Application 471 “window” generally opens in November 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: SLD Client Service Bureau: