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$4.72 BILLION REQUESTED FOR E-RATE IN YEAR THREE
Message Posted February 2, 2000

The Schools and Libraries Division (SLD) of the Universal Service

Administrative Company (USAC) reported to the Federal Communications

Commission (FCC) that $4.72 billion in requested funding has been estimated

for schools and libraries seeking E-rate discounts for Year 3. The

estimated demand represents more than the previous two years combined.

Of the 36,000 applications filed within the application filing window, which

closed January 19, 2000, more than 28,000, or nearly 80 percent, were

submitted electronically using USAC's SLD web site. Nearly 60 percent of

the requests are associated with the neediest schools and libraries: those

qualifying for program discounts of 80 to 90 percent. These schools and

libraries represent populations where 50 percent or more of students are

eligible to participate in the National School Lunch Program. Demand in

Year 3 was calculated from a review of the 36,000 applications, versus

the method in previous years that involved a statistical representation

based upon a sample of the total applications.

In Year 1 of the Schools and Libraries program, more than 30,000

applications were filed for E-rate discounts requesting approximately $2.04

billion for 1998 (This equates to $2.302 billion for the extended program

period of 18 months). In year 2, with more than 32,000 applications,

demand was approximated at $2.4 billion. The FCC set the funding cap to the

full $2.25 billion in Year 2.

-- SLD

Julie L. Tritt

Executive Policy Specialist

Pennsylvania Department of Education

333 Market Street, 10th Floor

Harrisburg, PA 17126

(717) 705-4486

(717) 787-7222 - fax

jtritt@state.pa.us

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