• Initial PY2 funding waves completed
• "Black hole" FCDLs for PY1 mailed
• SLD audit warning from SLD
• Information on early Form 470 filings for PY3
• Upcoming NYS E-rate workshops

The following is a summary of the E-rate news for the week of November 15, 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 on this web site.

Initial PY2 funding waves completed

Wave 20 of Funding Commitment Decisions Letters ("FCDLs") for program year two ("PY2") were mailed on Friday. The wave totals approximately $76 million, including $19 million for New York State applicants.

This is the last of the regular funding waves covering Form 471s submitted during the application window that closed April 6, 1999. One or more additional funding "ripples" may still be forthcoming to deal with a few applications still in process. Total funding for PY2 has now reached $1.927 billion, up 16% from the PY1 total. New York State applicants have been awarded $181 million, 9.4% of the total.

Important note: Funding through Wave 20 is approximately $300 million below the total $2.25 billion authorized for PY2 (and this amount does not include additional funds likely to be unused for PY1 and that may be carried over into PY2). Even allowing for a reserve for pending PY2 appeals, therefore, funding may be available for applications received outside the initial window. The SLD is currently considering how the extra funding should be allocated. Options include funding additional applications by discount level or by date of receipt after April 6.

Applicants with additional funding needs, not included in earlier applications, might find it worthwhile to file another Form 471 now for PY2. Similarly, applicants whose earlier requests had been denied for technical filing reasons may reapply. Although the SLD has not issued specific instructions, we would presume that the original version of Form 471 should be used for additional PY2 applications.

"Black hole" FCDLs for PY1 mailed

Revised funding letters for PY1 were mailed last week to applicants eligible for an additional six months of funding on telecommunications and Internet access services. The extra funding covers so-called "black hole" contracts that originally expired before December 31, 1998, and that were not covered by initial funding awards when PY1 was extended to eighteen months. To be eligible for the additional funding, applicants had to have filed an amended Form 486 last July indicating that the applicable contracts had been extended.

Applicants receiving "black hole" FCDLs should be careful to note that the FCDLs are for PY1. Since the applicants had already filed a Form 486 for the extension, another Form 486 will not be needed. Any errors in the additional funding calculations, however, should be quickly appealed. BEAR reimbursement forms, to take advantage of the additional discounts, are still

SLD audit warning from SLD

The SLD has sent an additional form letter to applicants previously receiving FCDLs for PY2 reminding them that funding is contingent upon compliance with all program rules. The letter includes the following warning:

"Program applicants which have received funding commitments from the SLD continue to be subject to audits and other reviews that SLD or the Federal Communications Commission (FCC) may undertake periodically… If the SLD subsequently determines that its funding commitment to you was erroneously issued due to action or inaction, including but not limited to that by SLD, the applicant, or service provider, and that the action or inaction was not in accordance with such requirements, then SLD may be required to cancel these funding commitments and seek repayment of any funds that may have been disbursed in error."

Information on early Form 470 filings for PY3

Prior to the availability of the new Form 470 for PY3, the SLD had accepted a limited number (less than 165, including 8 in NYS) of early filings using the original version of Form 470 from applicants faced with long procurement cycles. Applicants who took advantage of this earlier filing opportunity need check that their earlier filings were properly received. A list of those received by the SLD is available on the SLD web site. Early applicants, who had thought they had filed properly, but who are not on this list, should contract the SLD.

Upcoming NYS E-rate workshops

Two additional NYSED E-rate workshops for applicants are scheduled for the week of November 29. A special workshop for vendors also will be held in NYC on December 2. (See the listing below and the E-Rate Central web site for registration information.)

These half-day 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:

Mid-State area – 1-4 p.m., Monday, November 29 at Oneida-Herkimer-Madison BOCES, Settlement Road, New Hartford, NY.b6

New York City area – 2-5 p.m., Thursday, December 2, in the NYS Public Service Commission Boardroom, 8^th Floor, One Penn Plaza, New York, NY.b6

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.b6