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In This Week's Issue
» FY 2008 - FY 2009 Funding Status
» Two Important FCC Requests for Comments
» E-Rate Updates and Reminders
» Schools and Libraries News Brief dated November 6th - Training Q & A

E-Rate Central News for the Week
November 9, 2009

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 (516-832-2887) or through our Contact Us Web form. Additional E-rate information is located on the E-Rate Central Web site.

FY 2008 - FY 2009 Funding Status

Wave 27 for FY 2009 will be released on November 10th for $49 million, including $9.4 million for 35 New York applicants. This brings cumulative FY 2009 funding to $1.27 billion, including $121 million for New York. Priority 2 funding is still being provided for discounts of 85% or more. This threshold is expected to be lowered to 80% shortly, and may ultimately drop into the mid to lower 70s.

Applicants and service providers awaiting funding commitments for FY 2009 should note that the SLD appears to be behind the pace of funding in recent years. The following table shows the comparable amounts of funding committed through the second week of November for FY 2009 and the previous four funding years.

FY 2005 - FY 2009 Funding Comparison by Mid-November

          Total $B % Avail. Wave # Date
FY 2009 1.27 40% 27 11/10/09
FY 2008 1.64 58% 30 11/12/08
FY 2007 1.71 59% 28 11/13/07
FY 2006 1.40 62% 30 11/14/06
FY 2005 0.99 44% 20 11/09/05

At this point in the year, cumulative FY 2009 funding is lower than every year except FY 2005 - most noticeably more than 25% below the FY 2007 high. The FY 2005 comparison is a bit misleading since the first wave that year was not released until June 27th, roughly two months later than normal.

The "% Avail" comparison is also worth considering. This measure indicates the percentage of total available funding already committed for that year. As such, it provides a rough indication of how much of each year's funding has been awarded as of these November dates. Note that for FY 2005 and FY 2006, the total available funding was capped at the normal $2.25 billion level. As a result of FCC funding roll-overs, however, available funding for FY 2007, FY 2008, and FY 2009 was or is $2.90, $2.85, and $3.15 billion, respectively. On this basis, FY 2009 is below the equivalent figures for each of the other four years - most markedly, 35% below FY 2006.

Wave 72 for FY 2008 will be released on November 11th for $15 million, none for New York. The cumulative funding year total is currently $2.35 billion. Priority 2 funding at 87% is still pending.

Two Important FCC Requests for Comments

The FCC released two requests for comments involving E-rate last week. One deals generally with broadband needs in education and, more specifically, with possible changes in the E-rate program to improve broadband deployment nationally. This comment request is particularly critical because comments are due in less than three weeks (presumably because the input is needed for inclusion in the FCC's National Broadband Plan that must be submitted to Congress in February).

The other request is a formal Notice of Proposed Rulemaking ("NPRM") regarding proposed changes to the FCC E-rate rules under the Children's Internet Protection Act ("CIPA").

E-Rate, Education, and the National Broadband Plan:

One reason that recent articles in this newsletter tracked developments in stimulus funding for broadband services and the FCC's responsibility to develop a National Broadband Plan was that such activities would have at least an indirect impact on schools, libraries, and E-rate. More importantly, there was the possibility that the Plan would directly include recommendations for changes to the E-rate program. This suspicion was confirmed last week with the release of Public Notice DA 09-2376 entitled Comment Sought on Broadband Needs in Education, Including Changes to E-rate Program to Improve Broadband Deployment.

The Public Notice seeks comments in two broad categories. The first asks for broadband deployment data in education and for information on how such services are being used. The major areas of interest in this category are:

  1. The current state of network connectivity, device availability, and adoption in U.S. schools and classrooms.
  2. Broadband initiatives including infrastructure and large-scale deployments.
  3. Online and digital content needs and uses, including student instruction and professional development.
  4. Digital literacy programs, standards, and content.
  5. Online learning systems.
  6. Implementation of online/ASP/cloud-based systems.
  7. Data interoperability projects involving the Internet and/or WANs.
  8. Other online applications.
  9. Implementation of collaboration and "best-practice-sharing" online systems.
  10. Opportunities for government to support innovation in education technology.

The second category deals specifically with the current E-rate process and with possible changes to the program. It should be noted that this Public Notice simply requests comments on a number of E-rate matters. It is not a formal NPRM regarding specific proposals. Nevertheless, the nature of the questions suggests new Commission thinking on E-rate, particularly its use as a key vehicle for the implementation of the forthcoming National Broadband Plan. The most significant areas of interest in this category are:

  1. Modification of the E-rate program to more effectively meet the needs of applicants and/or to stimulate the adoption of broadband throughout communities. This might involve a more flexible definition of "educational purposes" to permit use of E-rate supported services by the general community, perhaps specifically including Head Start (eligible now only in some states) and colleges. The FCC is also asking whether computers and teacher training should be supported – and if so what would be the projected demand? (Our answer is "huge.") Consideration is also being given to E-rate support for purchased dark-fiber WANs.
  2. Comments are being sought on possible changes to the E-rate disbursement and discount methodology to maximize the deployment of broadband. Questions are raised about the possibility of creating a new priority level for those without broadband facilities and/or of providing greater support in rural areas. Concerns are implied about the limited availability of Priority 2 funding required for the effective use of broadband facilities.
  3. Recognizing that expanding the scope of E-rate would require more funding, the FCC asks about the need and feasibility of increasing the current annual $2.25 billion E-rate cap. Conversely, it asks about the possibility of eliminating some eligible products and services (not specifically named) and/or reducing the discount levels for basic (i.e., less than broadband) telecommunications services. The FCC also seeks suggestions for coordinating E-rate with other federal or state grant programs.

Comments on this Public Notice are due November 20th; reply comments are due December 11th. This schedule is a bit unusual, not only because it provides so little time for public responses on major issues, but because it allows more time for reply comments than for initial comments. This might indicate that the FCC might consider near-term changes on non-controversial matters. In this regard, it should be noted that some of the possible changes discussed are governed only by FCC rules and could be made relatively quickly (possibly by FY 2011); others, requiring legislative changes, would presumably become longer-term goals.

Proposed New CIPA Rules:

In October 2008, a provision of the newly enacted Protecting Children in the 21st Century Act modified the E-rate provisions of the Children's Internet protection Act ("CPIA") to require a new component in Internet safety policies addressing the education of minors in online behavior. Until now, however, there has been no FCC guidance on the implementation of the new requirement

Several weeks ago, the FCC released a Notice of Inquiry ("NOI") entitled Empowering Parents and Protecting Children in an Evolving Media Landscape (see our newsletter of October 26th. Although the NOI included a small section on "Teaching Media Literacy to All Stakeholders," dealing with media literacy and school curricula, CIPA was barely mentioned.

More importantly, the FCC just released a Notice of Public Rulemaking ("NPRM"), FCC 09-96, proposing new and revised CIPA rules. As to revisions, the FCC is simply proposing to expand its existing CIPA rules to formally include provisions of the original Act, heretofore incorporated only by reference.

The only real proposed change in the FCC's CIPA rules, as required by the Protecting Children in the 21st Century Act, would be "to add a certification provision that a school's Internet safety policy must include educating minors about appropriate online behavior, including interacting with other individuals on social networking websites and in chat rooms and cyberbullying awareness and response." (Note: this provision would apply only to schools, not libraries.)

According to the NPRM, the FCC has tentatively concluded that the new certification provision would not be required until applicants file their Form 486s for FY 2010 funding next fall. There is recognition, however, that schools may require additional time to amend their Internet safety policies, hinting that the final rules may not require the new certification until FY 2011.

We have the following two observations regarding this NPRM, namely:

  1. As it had done in the implementation of the initial CIPA requirements, the FCC has opted for enforcement by way of Form 486 certifications referencing back to the Act itself. Most significantly, the FCC is not proposing to establish detailed curriculum guidelines for educating students. Although schools may on their own decide to adopt online curriculum tools provided free or sold by third parties, they are not required to do so. While E-rate auditors may ultimately seek indications of good faith compliance, actual changes to school Internet safety policies may be minimal. Indeed, many existing policies may already include an adequate education component - perhaps more robust than the minimal language incorporated in our CIPA Policy Primer.
  2. Although the proposed FCC rules do not require schools to undertake a formal new adoption of their updated Internet safety policies, including Board adoption after due public notice, this might be a good opportunity to do so - particularly if documentation on the original policies is weak.

Comments on this NPRM are due thirty days after publication in the Federal Register (which should be later this month). Reply comments are due fifteen days thereafter.

E-Rate Updates and Reminders

Fall E-Rate Training:

Copies of the SLD's 2009 Training Slides are available on the SLD's Web site.

E-Rate Central has already begun its series of NYSED-sponsored E-rate workshops throughout the State. A schedule of the remaining sessions is listed below. A copy of the slides used in these presentations and the full 2009 schedule are available on E-Rate Central's New York Training Web site.

Nov. 9   (New date) Agudath Israel Brooklyn
Nov. 13 New York City Manhattan
Nov. 16 NYS Non-public Schools     Albany
Nov. 17 Northeastern NYS Albany
Nov. 18 Central NYS Oneida
Nov. 23     Long Island Wheatley Heights

Schools and Libraries News Brief dated November 6th - Training Q&A

The SLD News Brief for November 6, 2009, provides answers for many of the most commonly-raised questions from this year's fall training workshops. The News Brief, which is worth a review by both applicants and service providers, includes 2-5 questions and answers in each of the following topic categories:

  • Technology planning
  • Eligible services
  • Calculating discounts
  • Program Integrity Assurance ("PIA") review
  • Invoicing

 

Disclaimer: This newsletter may contain unofficial information on prospective E-rate developments and/or may reflect our own interpretations of E-rate practices and regulations. Such information is provided for planning and guidance purposes only. It is not meant, in any way, to supplant official announcements and instructions provided by either the SLD or the FCC.