• Topic of the Week: E-rate Issues for April-June 2001
• Updated Technology Plan Approval
• PY2 Issues
• PY3 Issues
• PY4 Issues

The following is a summary of the E-rate News for the Week of March 26, 2001, prepared by E-Rate Central. Official SLD news appears in the "What’s New!" section of the SLD’s Web site . Additional and archived information appears elsewhere on this Web site.

Since this was a quiet news week on the E-rate front, this version of the E-rate News for the Week reviews several topics that E-rate coordinators need to focus on over the next quarter.

• Updated Technology Plan Approval

For E-rate purposes, technology plans can be approved for a maximum of three years. Many E-rate applicants, therefore, who have been involved in the program since the first year ("PY1"), will need to update their technology plans and have them re-approved for PY4.

Recent technology plans approved by NYSED have been given explicit approval expiration dates based on the periods covered by the plans, or three years, whichever is earlier. Earlier approvals did not specify expiration dates; those plans approved for PY1, however, implicitly expired on or before June 30, 2001.

Technically, the SLD expects applicants to have a technology plan by the time they start the application process, i.e., before they file a Form 470 requesting services for the next year. The SLD also expects applicants to have these plans actually approved by the time E-rate discounted services are used. Generally, for PY4, this means by July 1, 2001. More practically, the first time that an applicant must certify that a plan is approved is when a Form 486 is filed indicating that actual services are being received. Bottom line: Any PY4 applicant needing new plan approved this year should try to do so by July 1.

The plan approval process for public school districts in New York has changed for PY4. Henceforth, district and BOCES plans will be approved by the associated Regional Information Centers ("RICs"). With a few parochial school exceptions, the plan approval process for all other NYS applicants remains unchanged. If in doubt, contact E-Rate Central at "techplans@e-ratecentral.com."

• PY2 Issues

• The SLD has still not funded the out-of-the-window ("OOW") applications that had been accepted up through March 31, 2000. We understand that most of these applications have been reviewed and that funding may be announced shortly. (One reason for the delay may be the complex prioritization scheme being used.) Once the funding waves for OOW applications begin, affected applicants will need to carefully scrutinize their Funding Commitment Decisions Letters ("FCDLs"). Unfavorable decisions may have to be appealed. If funded services have already been received, applicants should file associated Form 486s and BEAR reimbursement forms. Applicants are expected to have at least until September 30, 2001, to utilize funding on non-recurring services.
  
  
• September 30, 2001, is also a key date for applicants who received FCDLs for non-recurring services after April 4, 2000, as a result of successful appeals or SPIN changes.
  
  
• Applicants who filed BEAR reimbursement forms in late 2000 or earlier this year should check to see if they have received their supplier payments. Generally, once the SLD approves a BEAR (and an applicant receives a copy of the supplier’s BEAR approval letter), payment should be expected in about a month. Most suppliers are good about promptly relaying reimbursement payments, but others need to be reminded – sometimes forcefully.

• PY3 Issues

• If past is precedent, we would expect the FCC to act shortly to permit applicants funded for PY3 to have until September 30, 2001, to utilize awards for non-recurring services. However, applicants should be aware that, at the moment, the formal deadline for utilizing PY3 funds is still June 30, 2001. The safest strategy is to make every effort to meet this June deadline.
  
  
• The SLD hopes to have acted on most PY3 appeals by the end of this month. Revised FCDLs for successful appeals should begin to flow shortly thereafter. As above, we would expect the FCC to allow applicants additional time to utilize funds awarded upon appeal (at least 180 days from FCDL dates and possibly as late as September 30, 2002).

• PY4 Issues

• Funding waves for PY4 are expected to begin some time in April. Applicants, who have not yet been contacted by PIA reviewers, should be on the alert for such inquiries. While experience does not support a view that most funding will be completed by June 30, we do hope that the last regular PY4 wave will arrive earlier than last year (12/1/00).
  
  
• High discount applicants seeking funding for internal connections may be in for a longer wait. Preliminary estimates of PY4 demand suggest a significant shortfall in available Priority Two funding, even at the 90% discount level. As a result, the SLD and FCC may have to prorate or otherwise prioritize 90% level funding. This is an unprecedented problem and may require a formal FCC proceeding to resolve.