Erin Rock, Secretary

PROGRAM UPDATESAND SOME OTHER STUFF TOO

Changes Since January 2017

1. New FCC Chairman appointed – Ajit Pai➢ Recently confirmed by U.S. Senate

2. Pai letter to USAC.

3. CEO of USAC, Chris Henderson, resigned.

4. Chairman O’Rielly’s public remarks regarding USAC.

2

FUTURE OF E-RATE

Changes Since January 20175. EPC “budget” far exceeded original

estimate.6. Must cost allocate “excess” fiber on Cat 1

Leased Lit Fiber, Special Construction requests

7. USF funds being moved to US Department of Treasury.

8. Voice phasedown report; Cat 2 Public Notice

3

FUTURE OF E-RATE

Upcoming Potential Changes?

NPRM in the next 6 months

Order early Spring

Streamlining

BudgetOne “E-rate” Budget?

Block Grants?

New EPC?

4

FUTURE OF E-RATE

Category Two Budgets. What happens in 2020?

CATEGORY TWO

Each individual school has a Category Two “budget”.

➢ $150 per student per school. (increased each year due to inflation)

➢ Estimated to be 155.01 for FY2018

➢ Budget is for 5 years and can be used all in one year.

Is it a rolling budget or does it end after 2019?

Category Two Budgets. What happens in 2020?

CATEGORY TWO

Is it a rolling budget or does it end after 2019?

(1)Five-year budget. Each eligible school or library shall be eligible for a budgeted amount of support for category two services over a five-year funding cycle beginning the first funding year support is received.

(c)Funding year 2020 and beyond. Absent further action from the Commission, each eligible library or school in a school district that either did not receive funding for category two services in funding years 2015 through 2019 or has completed its five-year funding cycle, shall be eligible for support for category two services, except basic maintenance services, no more than twice every five funding years. CFR 54.502:

Category Two Budgets. What happens in 2020?

CATEGORY TWO

Is it a rolling budget or does it end after 2019?

What does this mean?

Category Two Budgets. What happens in 2020?

CATEGORY TWO

Is it a rolling budget or does it end after 2019?

What does this mean?What does this mean?

You either use your entire budget, and if the Commission takes no further actions, your organization will revert to the 2 in 5 rule.

For those who have not received Category Two support, you mayhave a 5 year budget starting with the first year you receive funding (2017-2021).

Category Two Budgets. What happens in 2020?

CATEGORY TWO

Is it a rolling budget or does it end after 2019?

FCC Public Notice:

“In preparation for this report, we seek comment on the sufficiency of the category two budgets. Specifically, we seek comment from applicants, service providers, and other interested parties about how applicants have used their budgets and the percentage of category two services purchased by applicants that were or will be covered by the budget. We will analyze FCC Form 471 data, but to the extent that relevant information exists that is not captured effectively in this collection, such as the impact on schools with a low student count serving students with special education services, we welcome additional data and analysis from commenters.”

CATEGORY TWO

Allocating Cat 2 Funds

each entity receives the same amount.

based on population size or square footage.

based on “specific” need or type of equipment.

Straight Line =

Proportional =

Specific =

Straight LineFRN = $250,000

90% DISCOUNT

POPULATION/ BUDGET

ALLOCATION

SCHOOL A 600

SCHOOL B 750

SCHOOL C 550

SCHOOL D 1050

SCHOOL E 350

SCHOOL F 500

= $90,000

= $112,500

= $82,500

= $157,500

= $52,500

= $75,000

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

CATEGORY TWO

CATEGORY TWO

POPULATION/ BUDGET

REMAININGBUDGET

SCHOOL A 600

SCHOOL B 750

SCHOOL C 550

SCHOOL D 1050

SCHOOL E 350

SCHOOL F 500

= $81,000

= $101,250

= $74,250

= $141,750

= $47,250

= $67,500

$43,500

$63,750

$36,750

$104,250

$9,750

$30,000

Straight LineFRN = $250,000

90% DISCOUNT

SQUARE FT/ BUDGET

ALLOCATION

LIBRARY A 20,000

LIBRARY B 7,500

LIBRARY C 4,500

LIBRARY D 8,000

= $41,400

= $15,525

= $9,315

= $16,560

$39,050

$7,500

$4,200

$12,250

PROPORTIONALFRN = $63,000

90% DISCOUNT

CATEGORY TWO

SQUARE FT/ BUDGET

REMAINING BUDGET

LIBRARY A 20,000

LIBRARY B 7,500

LIBRARY C 4,500

LIBRARY D 8,000

= $41,400

= $15,525

= $9,315

= $16,560

$2,350

$8,025

$5,115

$4,310

PROPORTIONALFRN = $63,000

90% DISCOUNT

CATEGORY TWO

SQUARE FT/ BUDGET

ALLOCATION

LIBRARY A 20,000

LIBRARY B 7,500

LIBRARY C 4,500

LIBRARY D 8,000

= $41,400

= $15,525

= $9,315

= $16,560

$41,400

$0

$0

$16,560

SPECIFICFRN = $53,650

90% DISCOUNT

CATEGORY TWO

SQUARE FT/ BUDGET

REMAININGBUDGET

LIBRARY A 20,000

LIBRARY B 7,500

LIBRARY C 4,500

LIBRARY D 8,000

= $41,400

= $15,525

= $9,315

= $16,560

$0

$15,525

$9,315

$0

SPECIFICFRN = $53,650

90% DISCOUNT

CATEGORY TWO

CATEGORY TWO

S

$150 x student≤61 students = $9,200

Schools

L

$2.30 x sq. ft. ≤4,000 sq. ft. = $9,200

Libraries

L

$5.00 x sq. ft.≤1,840 sq. ft. = $9,200

Libraries Serving High Density Urban

Areas

N

No Budget

NIF with Educational Areas

N

NIF

No Budget

*Estimated budgets; not adjusted based on inflation

Size Budget 2015 2016 2017 2018

School A 340 Students $51,000 $25,000 Denied $17,000 $9,000

Library B 7,500 sq. ft. $17,250 NA $8,625 $8,625 $0

Returned $6,000 in unused funds

$15,000

First year of 5 year budget

How should you handle part-time

students?

CATEGORY TWO

How should you handle part-time

students?

CATEGORY TWO

How should you handle part-time

students?

Morning = 58Afternoon = 105

58 + 105 = 163

105

CATEGORY TWO

How should you handle part-time

students?

Based on: anticipated user population density and network demand.

CATEGORY TWO

AUDIT PREVENTION

• Document source data for:

– Total Enrollment

– Part time

– Peak Part time

• Tech Plan

– Not necessary for E-rate but will help during PIA.

– RFI (if used to determine Cat 2 needs.)

AUDIT PREVENTION

– SERVICE DELIVERY & INVENTORY MANAGEMENT (CATEGORY TWO)

• Inventory/Asset Registry

• Schematic of equipment

• Receipt of service/ product and installation log (work orders)

• Replacement Log (replacement or upgrades)

• Maintenance Log

• Equipment transfer log