• PY2 funding update
• PY3 timing update
• Retroactive funding adjustments and other FCC decisions
• NYS E-rate workshop information

The following is a summary of the E-rate news for the week of October 11, 1999, prepared by E-Rate Central. Official SLD news appears in the "What’s New!" section of the SLD’s web site. Additional information and interpretations appear elsewhere on this web site.

PY2 funding update

Wave 15 of Funding Commitment Decisions ("FCD") Letters for program year two ("PY2") is on schedule to be mailed this Friday. The wave will be comprised of approximately 1,500 letters for $105 million. New York’s share of Wave 15 will be 93 letters for $3.7 million.

As of Waves 14 and 15, internal connections are being funded down to the 50% discount rate level. The reduction in the discount threshold represents a revised, but still conservative, SLD estimate of final funding requirements. Most likely, internal connections will be funded to a lower level, at least into the mid-40% range.

The SLD is still indicating that funding waves for PY2 will continue through October. A more realistic end point, given continued activity in the Program Integrity Assurance reviews, is sometime in November.

FCD letters for extended PY1 funding of certain telecommunications and Internet access services, to take care of the so-called "black hole" problem, that have been expected for several weeks, have yet to be released.

PY3 timing update

Earlier this week, the SLD mailed letters to 60,000 schools and libraries nationwide to announce the beginning of the application process for the 2000-2001 program year. Actual application filings schedules have not yet been published.

Informally, the SLD has indicated that it hopes to be ready to begin receiving new Form 470s on-line by Wednesday, October 20. It is currently anticipating that the Form 471 filing window will open in early November and will run through mid-January. (Insider view: Do not be surprised to see the anticipated 471 window slip by at least half a month.)

Retroactive funding adjustments and other FCC decisions

The FCC published two decisions this week addressing a series of funding awards made by the SLD for PY1 that were determined to be in violation of FCC rules or statutory requirements. The FCC issued waivers on 697 applications (worth $14 million) involving violations of its administrative rules (e.g., competitive bidding, priority funding, prior contracts, posting requirements, and service period calculations). However, on 132 other applications (worth $2.7 million) involving violations of law (e.g., ineligible services and telecommunications services provided by non-telecommunications carriers) the FCC reversed the funding awards. In about a dozen cases, the reversals involve discount payments that have already been made and that will have to be returned.

These two actions are a part of a growing number of individual FCC decisions that are being released, now almost daily, on various E-rate appeals and waiver requests. Because of the completeness of the decisions in these cases, and the precedent-setting nature of many, E-Rate Central has established a new section on its web site to provide copies of FCC decisions (see FCC Decisions).

One interesting distinction to be made when reviewing FCC decisions is the difference between decisions made by the Commission itself (designated FCC 99-xxx) or, under "delegated authority," by the Common Carrier Bureau (designated DA 99-xxxx). Under FCC rules, Bureau decisions can be re-appealed to the full Commission.

NYS E-rate workshop information

The five half-day NYS E-rate workshops, sponsored by the New York State Education Department and listed below, have now been posted on the E-Rate Central web site with registration information and location maps.

The workshops have been designed to address the needs of both new and experienced participants in the E-rate program. The presentations will address the entire application process with special emphasis on the new forms, procedures and contract requirements for the 2000-2001 program year.

School and library workshops:

New York City area - 9-12 a.m., Monday, October 25, in the NYS Public Service Commission Boardroom, 8^th Floor, One Penn Plaza, New York, NY.

Northeast area - 2-5 p.m., Tuesday, October 26, in the NYS Museum Theatre, 3090 Cultural Education Center, Albany, NY.

Western area - 1-4 p.m., Friday, October 29, at Erie 1 BOCES, 355 Harlem Road, West Seneca, NY.

New York City area - 9-12 a.m., Monday, November 1, in the NYS Public Service Commission Boardroom, 8^th Floor, One Penn Plaza, New York, NY.

Service provider workshop:

New York City area - 9-12 a.m., Thursday, December 2, in the NYS Public Service Commission Boardroom, 8^th Floor, One Penn Plaza, New York, NY.

Schools, libraries, and vendors that cannot attend any of these sessions have several other training options. E-Rate Central will be holding condensed workshop versions at the NYLA Conference in Buffalo on October 28 and at the NE Regional Technology Awareness Day in Saratoga on November 30. The SLD is running a two-day training session in Indiana on November 4-5 that is expected to be broadcast live and available for later viewing over the Internet.