zeller and associates, llc

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 1

Zeller and Associates, LLC

This presentation is available at

www.zellerandassociates.com/erate

Click on “Presentation: Joliet: May 7, 2014”

The e-Rate Program

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 2

1. Overview

2. Timelines

3. Changes

4. Help

Agenda

The e-Rate Program

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 3

The e-Rate Program

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 4

• Federal Communications Commission (FCC), an independent U.S. government agency, established and oversees the E-rate program

• Universal Service Administrative Company (USAC), a not-for-profit, administers the E-rate program along with three other programs

• Schools and Libraries Program (SLD) is the part of USAC with responsibility for E-rate

E-rate Organization

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 5

• Congress directed the FCC to establish the E-rate program in 1996

• The FCC sets rules and policies through orders• USAC and the Schools and Libraries Division develop

procedures for specific actions, such as how to process applications

E-rate Rules

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 6

• Commitments for E-rate are made by the funding year (FY), which runs from July 1 through the following June 30

• USAC refers to the funding year as the year in which most services will begin, e.g., FY2014 is July 1, 2014 to June 30, 2015

Funding Year

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 7

• The FCC has set the E-rate fund at $2.25 billion for each funding year. However, beginning in FY 2010, the cap is now adjusted for inflation each year

• Once each year, FCC can roll over unused funds from previous funding years into the current funding year

Budget

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 8

• Who is eligible for E-rate funding?– Schools and school districts• Non-traditional facilities (conditionally by state)

– Libraries and library systems– Consortia – groups of eligible entities that

band together to aggregate demand and negotiate lower prices

Eligibility

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 9

• Discounts are 20-90 percent of eligible costs• Discount level for a school or library depends on:– Percentage of students who are eligible for National

School Lunch Program (NSLP) in • (for a school) the school• (for a library) the school district in which the

library is located– Urban or rural location of the school or library

Discounts

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 10

• Discount Matrix

Discount Matrix

Overview

INCOME % of students eligible for NSLP

URBAN LOCATION Discount

RURAL LOCATION Discount

If the % eligible is... ...and you’re in an URBAN area, your discount will be...

...and you’re in a RURAL area, your discount will be...

Less than 1% 20% 25%

1% to 19% 40% 50%

20% to 34% 50% 60%

35% to 49% 60% 70%

50% to 74% 80% 80%

75% to 100% 90% 90%

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 11

• Priority 1 (P1): funded first– Telecommunications Services – Internet Access – Telecommunications (leased dark fiber)

• Priority 2 (P2): funding starts with neediest applicants– Internal Connections – Basic Maintenance of Internal Connections

Categories of Service

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 12

Internet

Phone

Category of ServicePriority One (P1)

Funded First

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Category of ServicePriority Two (P2)

funded beginning with neediest applicants

XX

X

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 14

OverviewProcess

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 15

The e-Rate Program

Timelines

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 16

Timelines

Overview

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 17

e-Rate

Changes

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 18

Estimate of Demand: FY 2013

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 19

Estimate of Demand: FY 2014

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 20

• Within five years, connect 99 percent of America’s students to high speed wireless within their schools and libraries

• at speeds no less than 100 Mbps• with a target of 1 Gbps.

Obama’s ConnectED Initiative

Changes

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 21

1. Increase broadband connectivity

2. Improve the cost-effectiveness of e-Rate funds

3. Streamline the Program

Goals

Changes

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 22

• Decrease/end support for analog voice

• Devise new methods of funding Internal Connections

– Per student?

• Tech Planning?

Increase broadband connectivity

Changes

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 23

• Consortia

– Diocese?

– ICN: sorta…

– MiCTA

Cost-effectiveness of e-Rate Funds

Changes

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 24

• Eliminate the 470???

Streamlining the Program

Changes

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 25

e-RateZeller and Associates, LLC

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 26

• We prepare the documents and file the forms

• You inform us of changes and additions in advance

• You provide us with the information we need

• You make the decisions

• You keep the records

Full Service

Zeller and Associates, LLC

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 27

• Group Filing Sessions

– 470 in October

– 471 in January

• Guidance Documents

– 486

– 472 (BEAR)

• Available for questions

By “Form” Service

Zeller and Associates, LLC

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 28

Phone: (888) 203-8100

Fax: (888) 276-8736

Website: www.usac.org/sl

With questions, please contact USAC!

Contacts

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 29

• Gerry Zeller

• V: 847.828.4606• F: 847.729.5240• E: gzeller@zellerandassociates.com

Zeller and Associates, LLC

OrZeller and Associates, LLC

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 30

Questions?

Based on Beginner’s Presentation I 2012 Schools and Libraries Fall Applicant Trainings: Modified Fall 2013 31

Thank you!