MASBO February 11, 2015 Gary Rawson ITS

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Presentation transcript:

MASBO February 11, 2015 Gary Rawson ITS E-rate MASBO February 11, 2015 Gary Rawson ITS

What is E-rate? It provides discounts on eligible services; discounts range from 20% to 90% Discounts are determined by poverty level which is determined by students eligible for Free or Reduced lunches Only schools (public, private, parochial…) and public libraries are eligible entities.

What is E-rate? Eligible Services in two categories: P1 and P2, now C1 and C2 C1 includes WAN circuits, Internet Access, E-mail, Cellular Service, Wireless Data, POTS, Long Distance, VOIP and other telecom services C2 includes Routers, Switches, Wiring, Cable between buildings, WiFi

Where does the Funding come from? 10. Federal Universal Service Charge 3.42

Mississippi E-rate We are currently in our 17th year of the program and are now entering our 18th year of the program Committed dollars, including FY2014: $578,475,538.18 Average $ per student, per year: $69.44 (Assuming Student Count of 490,000) Statewide Average $ per year: $34,027,972.83

Is e-rate changing? Yes. Is it being Modernized. How will the Modernization impact my district? Available funding District Discount Calculation C2 funding, used to be P2 funding P1/C1 Eligible services that are now ineligible Eligible services (Voice) being phased out New services that are now eligible School Budgets

Available Funding For 17 years the program has been capped at $2.25 billion, increased a few years ago due to inflation to $2.3 billion. Starting in FY2015, 18th year of the program, the cap will be increased to $3.9 billion An additional $1 billion has been set aside for C2 (Wi-Fi) Potentially, we could have $4.9 billion for FY2015!

District discount Calculation – Discount Table

District Discount Calculation – The way we used to calculate Discounts SCHOOL ENTITY U Student % Matrix Wt. Distr. NUMBER R CNT Eligible Elig. Prod. School 1 1 398 342 86% 90 358 School 2 2 659 472 72% 80 527 School 3 3 321 263 82% 289 School 4 4 161 134 83% 145 School 5 5 317 259 285 School 6 6 314 277 88% 283 School District Name D1 2170 1747 81% 1887 87%

District Discount Calculation – The way we NOW calculate Discounts SCHOOL ENTITY U Student % Matrix District C2 Dollars NUMBER R CNT Eligible Elig. $150 per After Discount School 1 1 398 342 86% $ 59,700 School 2 2 659 472 72% $ 98,850 School 3 3 321 263 82% $ 48,150 School 4 4 161 134 83% $ 24,150 School 5 5 317 259 $ 47,550 School 6 6 314 277 88% $ 47,100 School District Name D1 2170 1747 81% 90 90% $ 325,500 $ 292,950

C2 funding, used to be P2 funding No P2 funding for previous two years Starting in FY2015, at least $1 billion has been set aside for C2 Emphasis on Wi-Fi (Internal Broadband Service) No longer eligible as P2/C2 Telephone Components, Video Components Voice over IP components, Video over IP components Gateways, Servers, Software, Storage Devices

C1/P1 Eligible services that are now ineligible Telecom Paging, Custom Calling Services, 900/976 call blocking Inside Wire Maintenance, Directory Assistance, DID lines Internet Access Web Hosting E-mail Voice Mail Cellular Text Messaging Cellular Data Plans Virtually Ineligible

C1/P1 Eligible services (Voice) that are being phased out Centrex Circuit capacity dedicated to providing voice service Interconnected VoIP Local, long distance, 800 service POTS Wireless telephone service including cellular voice Excludes data and text messaging

Voice Services phase out If you are 90% 2015 = 70% discount (90%-20%) 2016 = 50% discount (90%-40%) 2017 = 30% discount (90%-60%) 2018 = 10% discount (90%-80%) 2019 = 0% discount (ineligible) (90%-100%)

New services that are now eligible Cache Engine (C2) Managed Wi-Fi (C2) Direct Connections between two schools or NIF Direct Connections between a school and a library

School Budgets (C2 funding) Each school gets a budget of $150 per student NIFs do not get a budget NIF with classroom does not get a budget Stand Alone Alternative Schools get a budget Vocational Schools get a budget Budgets are pre-discount 80% District has a School with 2000 students Budget = 2000 * $150 * .80 Budget = $240,000

E-rate coordinator has to deal with a lot of changes this year Services that are no longer eligible Services that are being phased out Services that are now eligible Availability of more funding (C2) School budgets New forms The FCC’s emphasis on data gathering An open Window