Is it worth your while to apply for e-rate?
Your library’s technology plan needs to be in force in order to receive e-rate discounts; the traditional limit for E-rate plan approvals is three years. For assistance on writing a technology plan and applying for e-rate discounts the following resources may be helpful:
WebJunction Connecticut pages on the Universal Service Fund and technology planning.
Connecticut’s checklist for technology plans and the 5 Required Elements of technology plans.
The Universal Service Administrative Company Schools and Libraries Division.
The State E-rate Coordinators Alliance (a.k.a. "e-rate central").
On September 28, 2010 the Federal Communications Commission issued its Sixth Report and Order (FCC 10-175) with new requirements for technology plans for FY2011 and beyond. The implications of the order as it relates to Divisional approval of library and consortial technology plans follows.
Technology Plans are:
• No longer required for Priority One (Telecom and Internet Access)*.
• Still required for Priority Two services (Internal Connections and Basic Maintenance of Internal Connections).
• There are now four required elements: Applicants need no longer include a budget** section.
• Applicants citing a state-filed Form 470: Not needed prior to posting of state-filed Form 470.
• Still need to be approved. All applicants requesting priority 2 services must still have an approved plan that covers at least part of the upcoming funding year prior to the start of service or the filing of the Form 486, whichever comes first.
Additional helpful information is noted by E-Rate Central in its News for the Week of October 18, 2010:
1. Low- to mid-discount rate applicants, many of whom never apply for Priority 2 services anyway, no longer need to be concerned with E-rate technology plans. This should significantly reduce the number of applicants who need approved technology plans. In FY 2009, for example, almost 60% of the funding, and even a higher percentage of the applications, was for Priority 1 funding.
2. Higher discount rate applicants should continue to do E-rate technology plans. This advice clearly applies to applicants whose discount rates, either on average or for individual sites, are 80-90%. In our view, applicants with discount rates under 80% need to assess the likelihood of the Priority 2 funding threshold, in any given year, dropping to a lower level. Since FY 2003, that threshold was below 80% only once.
* However, E-Rate Central commented in its News for the Week of October 4, 2010 that, “At a minimum, applicants with discount rates above 60% — either on average or for individual entities — should continue to have approved plans. Those with plans expiring June 30, 2011, must still be able to document the creation of an updated plan covering FY 2011 before filing their Form 470s for Priority 2 services.”
** For applicants who had previously done only one-year plans because of a reluctance to budget more than a year in advance, this means that writing a three-year plan may become a more viable option.
page last modified: November 23, 2010