| This is the time of year that many school parents
are returning application forms for free and reduced-price lunches under the
National School Lunch Program ("NSLP"). Since E-rate discount levels are
determined by the percentage of students in each school whose family income
levels qualify them for free or reduced-price lunches, many applicants will
find it well worth their time to track the NSLP application process carefully
and to encourage maximum participation by eligible students.
Family income levels for NSLP eligibility are set each year by the U.S.
Department of Agriculture. The guidelines, based on family size and annual
income, can be found at
NSLP Guidelines.
The two most important points to remember regarding E-rate discount levels are
as follows:
(1) In some cases, finding only a few more eligible students can significantly
improve a school's discount rate. As a dramatic example, consider an urban
school with a total of 500 students. If 247 students - or 49.4% - are eligible,
the school would have a discount rate of 60%. With one more eligible student -
bringing the eligibility percentage to 49.6%, which rounds to 50% - the
school's discount would increase to 80%. Not only does this mean a one-third
increase in the discount rate, but often may make the difference between an 80%
discount on Internal Connections requests and no discount at all. (The Priority
Two funding threshold for FY 2003 was 70%.)
(2) E-rate discounts are based on the number of students eligible for free or
reduced-price lunches, not on the actual number of students participating in
the NSLP program. Although the percentage of participating students is the
easiest way to establish an E-rate discount - and is the number that the SLD
will accept without additional documentation - it often significantly
understates a school's true eligibility percentage (particularly at the junior
or senior high school level).
There are several techniques that can be used to find and document additional
eligible students. Here, in order of the amount of work required, are a few:
(1) Many schools will know or suspect that certain families have incomes below
the NSLP guidelines, perhaps based on the previous year's participation. If
they are tracking application returns, the schools can tactfully encourage
those families to apply. This is a critical time in the year to track and
encourage applications for eligible students.
(2) Although discount rates are established on a school-by-school basis,
districts with separate primary and secondary schools may find it advantageous
to collect NSLP applications centrally and to search (so-called "sibling
searches") for families enrolling only their younger children in the lunch
programs. Those same family applications can be used to document the
eligibility of older, non-participating, students.
(3) Alternative measures are approved for documenting income eligibility for
E-rate purposes (see
NSLP Alternatives). As indicated, these include student participation
in other school food programs (breakfast or snack), eligibility for other
Federal assistance programs, or school-wide surveys. For an example of a survey
letter and form, see
Survey.
Reminder: The discount rate for libraries is based on the eligibility
percentages of the schools in the district in which they are located. School
districts able to document higher levels of eligibility than are reflected in
publicly available NSLP data are encouraged to provide this information to
their local libraries.
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