In This Week's Issue
»	FY 2008 Funding Status and Priority 2 Outlook
»	FY 2007 Funding Status
»	Schools and Libraries News Brief for May 9th

E-Rate Central News for the Week
May 12, 2008

The E-Rate Central News for the Week is prepared by E-Rate Central. E-Rate Central specializes in providing consulting, compliance, and forms processing services to E-rate applicants. To learn more about our services, please contact us by phone (516-832-2880) or by e-mail. Additional E-rate information is located on the E-Rate Central Web site.

FY 2008 Funding Status and Priority 2 Outlook
Wave 3 for FY 2008 is scheduled to be released on Tuesday, May 13th. Funding in this wave is expected to be about $88 million. The cumulative national FY 2008 funding total is $469 million. Funding is currently being provided only for Priority 1 requests.

The outlook for Priority 2 funding in FY 2008 became a little clearer last week when USAC released its Federal Universal Service Support Mechanisms Fund Size Projections for the Third Quarter 2008. The report shows the following estimated remaining balances in available E-rate funds, up $150 million from the end of the previous quarter:

Last year, when the FCC rolled over an additional $650 million in previously unused funds into FY 2007, it did so in July. The most recent USAC funding report indicates that, should the FCC decide to roll over additional funds into FY 2008, the roll-over amount could be at least $600 million. Conceivably, if the FCC waits until the beginning of August, when USAC's next quarterly report is expected, the available funding could be $100-150 million higher. Based on an additional $600 million and the slightly higher initial demand level for FY 2008, and assuming funding approval rates are similar to those experienced in FY 2007, next year's Priority 2 threshold should reach down at least into the mid-eighty percent range.

FY 2007 Funding Status
Wave 50 for FY 2007 is scheduled to be released on Wednesday, May 14th. Funding in this wave is estimated to be about $13.5 million. The cumulative national FY 2007 funding total is $2.32 billion. The final Internal Connections funding threshold for this year is 81%.

Based on the same USAC quarterly report discussed above, updated for funding decisions made since March 31st, it appears that approximately 1,700 potentially fundable FY 2007 applications currently remain in the PIA process.

Schools and Libraries News Brief for May 9th
The SLD's News Brief for May 9th discusses the following three main topics (including two covered in the E-Rate Updates and Reminders section of our last weekly newsletter):

Out-of-Window Letters for FY 2008:
On May 7th, the SLD issued approximately 450 letters to applicants whose FY 2008 applications were filed after the application window had closed. This would include:

• Online applications submitted after February 7th.
• Paper applications postmarked after February 7th.
• Certifications for online applications that were not received by March 12th, i.e., twenty days after the SLD had mailed reminder letters titled "Notification of Form 471 with No Certification."

As indicated in our last newsletter, the only chance applicants have to correct out-of-window applications is to request waivers of the Form 471 filing deadline from the FCC. Such requests should be filed by July 6th (i.e., within 60 days of the out-of-window notification). Historically, the FCC has granted a few such waivers for applicants demonstrating extreme hardship (e.g., serious illnesses, deaths, or military deployments).

Applicants with "Incomplete" applications - i.e., those applications begun, but not completed, online - will not be receiving Out-of-Window Letters.

Filing Early Form 486s:
Applicants funded in early FY 2008 waves can file Form 486s before July 1st. However, the following cautions should be noted:

1. The FRNs listed can only be for services that will be received starting between July 1st and July 31st.
2. To certify that services will start no later than July 31st, the Item 6a box (on page 2 of the paper form) must be checked.
3. Unless the Form 486 is for basic telephone service only, the applicant must have an approved technology plan covering all of FY 2008 before the Form 486 is filed. The Item 8 technology plan certification affirmatively states that a plan has been approved (not, like some other forms, that it will be approved by the start of service).

Volunteering for a HATS Visit:
In September 2006, USAC instituted a Helping Applicants to Succeed ("HATS") program under which the SLD (or its contractor, BearingPoint) would visit applicants who had clearly experienced difficulties with the E-rate program over the last few years. Unlike ongoing site visits and audits, designed to check compliance with E-rate rules and procedures, HATS is a true educational outreach program. The News Brief explains: "For a HATS visit, no advanced preparation is required. We will not ask to see any of your forms, program documentation, or equipment." Essentially, HATS is an individualized, hands-on, training opportunity. Feedback from applicants experiencing HATS visits has been positive.

Each year, the SLD offers HATS visits to a selected number of applicants that it identifies. But applicants can also volunteer for such visits by contacting the SLD's Client Service Bureau (888-203-8100). If calling, be prepared to provide E-rate contact information and a reason(s) for the request (e.g., prior denials, funding reductions, Commitment Adjustments, Recoveries of Improperly Disbursed Funds, appeals, etc.).