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Revised E-rate Form 486 and New Form 500 Approved
Message Posted May 25, 2000

* Will be posted to SLD web site on Tuesday*

As you know, applicants funded in Year 3 have not been able to file a Form 486 because it was under revision with the FCC and the OMB. We have just learned that the 486 and a new companion Form 500, have been approved and are expected to be released by the SLD next week. Applicants who have received Funding Commitment Decisions Letters Year 3 will be mailed copies of both forms as well as explanations of their changes and uses.

Basically, the old 486 has been split into 2 forms to make it easier for applicants to use. The new 486 will be used solely to confirm that service is being received, or is about to be received, after an applicant has received a funding commitment letter. If an applicant will be receiving Year 3 services beginning in July, they should file the new version of the Form 486 for these services as soon as possible.

The new Form 500 is to be used to advise the SLD of contract extensions or of cancellations or reductions of funding requests. Specifically:

(a) Applicants who have been funded for non-recurring services in Year 2 and who intend to take advantage of the newly announced extended installation period through September 30, but have contracts set to expire on or before June 30, can use the Form 500 to report contract extensions.

(b) The new Form 500 can also be used to cancel a FRN entirely (as could be done with the old Form 486) or to reduce the amount of funding requested. Reducing the amount of a FRN is a new option now available with the Form 500. Applicants who find that they have been awarded more funding than they will need in any funding year are strongly encouraged to file a Form 500 as soon as possible to free up potential funding for other applicants.

In summary, all funded Year 3 applicants will have to file a new Form 486, and are encouraged to do so as soon as it is posted to the SLD web site or received in the mail. All Year 2 funded applicants who have not yet sent in their 486 (and there are more than 800 in Pennsylvania, alone) will be using the new 486 to tell the FCC to make payment (either to the vendor or for a submitted BEAR form). At this point, the only applicants who will be using the new Form 500 are Year 2 applicants who want to take advantage of the non-recurring services extension through Sept. 30 or applicants who want to reduce or cancel funding from years 2 or 3.

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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