| Calculating Library Discount Rates for FY 2003
A headline on the SLD Web site reminds libraries that a new method to calculate
discount rates must be used this year. Rates calculated under the old method
will be revised - upward or downward - by the SLD to reflect the new method.
In previous years, a library was required to use the aggregate discount rate of
the school district in which the library was located. A school district's
aggregate discount rate is based on a weighted average of the rates for each of
the district's component schools.
Beginning this year, a library must calculate its own discount rate. The
calculation uses student data from the associated school district, but does not
necessarily match the district's own aggregate rate. The library's calculated
discount may be slightly lower, equal to, or slightly higher than the
district's aggregate discount rate. As indicated in the Form 471 instructions
(pp. 16-17), a library must:
(1) Determine the overall percentage of students that are eligible for free or
reduced priced lunches based on the total number of students in the associated
school district (see below).
(2) Determine whether the school district and library are in an urban or rural
area. A
list of the rural areas can be found in the SLD Web site Reference
Area.
(3) Find the library's discount rate in the
Discount Matrix, also found in the SLD's Reference Area.
The best way for a library to determine the eligible student percentage is to
contact the local school district and ask for student eligibility data and
supporting documentation. Note that it is important to ask the district for a
count of total students and total eligible students, not for the school
district's aggregate discount rate.
If information is not available from the district, school lunch program data can
often be obtained from a state Web site (a list of state E-rate sites is
available on the E-Rate Central Web site in the "States' Sites" area).
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