E-Rate 101: Basics of the program Fall 2009

1. E-Rate 101: Basics of the programFall 2009

2. Contact information • Pam Jacobs • 515-975-0071 • pam.jacobs@iowa.gov A copy of the powerpoint is available at http://www.iptv.org/iowa_database/erate/

3. 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

4. Who is eligible to participate? • Libraries • Schools

5. Library Eligibility • Non-profit, public libraries • Eligible for LSTA (Library Services and Technology Act) • Can be: • single library • consortia • library system

6. 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

7. What is My Discount?

8. Two criteria make up discount: • Poverty • Location

9. 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.

10. Location • Urban/Rural defined by Counties

11. Iowa counties which are urban: • Black Hawk • Dallas • Dubuque • Johnson • Linn • Polk • Pottawattamie • Scott • Warren • Woodbury

12. Discount Matrix

13. 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 What is funded through e-rate?

14. Eligible Telecommunications (priority 1) Including all taxes and surcharges! MUST be provided by regulated telecommunications carrier e.g. • local & long distance • Leased data circuits (e.g. T-1)

15. Eligible Telecommunications (priority 1) cont. • Voicemail • Satellite dish service for 2-way communications (NOT satellite TV subscription) • Cell phone service • Centrex • Blackberry-type service

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

17. Wiring Routers Switches Hubs Network servers System operating software Wireless LANs Private branch exchange (PBX) (Eligible Services: Internal Connections priority 2)

18. Eligible Services: Maintenance of internal connections (priority 2) • Maintenance of previously purchased internal connections (does NOT include end-user equipment such as computers)

19. Where can we see the eligible services list? Answer: Draft eligible services list is at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-09-1233A1.pdf

20. Discounts come in 2 forms: • Discounts on bills OR • Reimbursements from service provider (service provider gets reimbursed by USAC)

21. How Discounts Work How Discounts Work $100 You get 55% (existing) bills in discounts you would pay You apply to for discounts K The vendor ’ s bill drops by $55 Vendor Vendor invoices gets $55 USAC/USAC approves from SLD! invoice You now only owe $45 J

22. How Reimbursements Work How Reimbursements Work $100 You get 55% (existing) bills in discounts you would pay You apply to for discounts K You pay 100% of bill Vendor USAC approves sends paperwork/sends check to you $55! vendor You apply for reimbursement J 10/9/2007 CDE/VET/E - rate/CTF 2000 - 2001 (BEGINNER)

23. 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

24. “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.

25. Fair Warning! • Not an easy process • Lots of paperwork • Rewards can be great!

26. 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

27. 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 e-mailed the plan, keep an electronic or paper trail for use when/if PIA asks for the creation date

28. 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

29. What to say about the budget • Statement such as, “During the 2008-09 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 2010-11 and will use the same funding sources.” • Or use the board-approved budget for the 2009-10 school year and state that you anticipate similar budget in 2010-11

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

31. Tip 1: Get organized • Create a notebook with tabs: • Tech plan • Form 470 • Form 471 • Form 486

32. Tip 2: Get frequent updates • Listserv: • AEAUSF@iptv.org • USAC offers frequent updates

33. 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

34. Who are the E-rate players? • Congress • FCC (Federal Communications Commission) • USAC (Universal Services Administrative Company) • SLD (Schools and Libraries Division)

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

36. Application Process at a Glance: • Form 470: Now until on or about December 1. • Wait 28 days! Must wait that long! • Form 471: “window” opens in November and usually closes in February (dates not yet set) • Wait for questions from PIA • Funding commitment decision letter • Form 486: file to confirm services • If getting reimbursements, form 472 (BEAR)

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

40. 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

42. 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)

44. Year 2010-11 Details (funding year 2010) • 7/1/2010 - 6/30/2011 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)

45. Resources to Remember • SLD web site: www.universalservice.org/sl/ • SLD Client Service Bureau: 888-203-8100 • www.iptv.org/iowa_database/erate • pam.jacobs@iowa.gov • 515-975-0071