1. E-Rate 101: Basics of the program Fall 2007 Pam Pfitzenmaier 515-669-8159 pam.pfitzenmaier@iowa.gov

2. 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

3. Who is eligible to participate Libraries Schools

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

5. 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

6. What is My Discount?

7. Two criteria make up discount: Poverty Location

8. 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.

9. Location Urban/Rural defined by Counties

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

11. 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%

12. 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

13. Eligible Telecommunications (priority 1) MUST be provided by regulated telecommunications carrier e.g. –local & long distance –distance learning (such as ICN video) Including all taxes and surcharges!

14. Eligible Telecommunications (priority 1) cont. VoicemailVoicemail 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

15. Eligible Services: Internet Access (priority 1) Internet Access Services Web hosting service

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

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

18. 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

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

20. 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

21. How Reimbursements Work 10/9/2007CDE/VET/E-rate/CTF 2000-2001 (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

22. 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

23. “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.

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

25. 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

26. 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

27. More on Tech plans USAC (PIA) has started asking to see –Your approved tech plan –Your tech plan approval letter

28. 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.”

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

30. Tip 1: Get organized Create a notebook

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

32. 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

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

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

35. 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

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

39. 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

41. 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

42. 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

44. 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)

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.pfitzenmaier@iowa.gov 515-669-8159