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Year 3 E-rate Update: Funding, SPIN Changes, Appeals
Message Posted August 11, 2000

* * * I assume you're enjoying your summer and E-rate is the last thing on your mind. Therefore I'm condensing several E-rate updates into 3 separate messages by funding year.

Funding

The SLD has informed us that there will be no funding wave this week. Funding will resume next week with Wave 18. So far, they have committed $1.4 billion of the $2.25 billion available. Waves are expected to continue through September, but according to my estimates, about 80% of Pennsylvania applicants have received notification of their requests already. As far as internal connections funding, they are now able to fund down to the 83% level, but maintain that they will not be able to fund anyone at 80% or below.

SPIN Changes

As you know, the FCC has not yet made any final decisions on SPIN changes, and thus all SPIN change requests are in limbo. I, as well as my counterparts in 20 other states, have expressed to the FCC our strong displeasure with this delay and have asked them to expedite their rulemaking on this matter. One ray of good news is that the SLD has been given permission to process SPIN change requests it currently has on hand that satisfy the guidelines that were in effect prior to FCC's Copan decision. They will not deny any requests at this time; they will hold any requests that they are unable to approve under the previous guidelines and review them again once the FCC has issued further guidance.

If you would like more information concerning how to request a SPIN change and what the previous SPIN rules were (and that they are now using), visit: http://www.sl.universalservice.org/whatsnew/default.asp#073100.

Appeals

Year 3 appeals will be considered after all Year 3 funding has been committed (guess: end of September) and after all Year 2 out of the window applications have been processed and funded (guess: November/December).

If your application was denied in year 3, I can't stress strongly enough that your appeal letter has to be received at EITHER the SLD or the FCC within 30 days of the date on your letter -- not 30 business days, not the date received, and not the postmark date on the envelope. Everyday there are dozens of appeals that are summarily dismissed because they were received on day 31 or after. Please make certain you don't make this mistake.

Also, if you are appealing based on the fact the SLD incorrectly denied your application, send your appeal letter to the SLD. If you are appealing a policy decision, send your appeal letter to the FCC. DO NOT SEND TO BOTH AT THE SAME TIME. If your appeal is denied at the SLD letter, you may appeal within 30 days to the FCC Common Carrier Bureau. If that appeal is denied, you may appeal within 30 days to the full Commission. And if that appeal is denied, you may appeal to the courts.

Information on how to appeal is available at: http://www.sl.universalservice.org/apply/10procpost.asp

Discounts vs. BEARs

The SLD would like us to remind you that invoice payments for Funding Year 3 will be based consistently on the type of invoice form selected for the first invoice. So, if FCC Form 472, Billed Entity Applicant Reimbursement (BEAR) form, is submitted for the first payment, the BEAR form must be used for the entire funding year. Conversely, if FCC Form 474, Service Provider Invoice Form (SPIF), is submitted for the first payment because discounts have been provided by the Service Provider, the SPIF form must be used for the entire funding year.

Therefore, Applicants and Service Providers should work together, before the first invoice is submitted, to determine which type of form shall be used. Invoice forms received that are not the same type of invoice form as the first invoice submitted for Funding Year 3 will be rejected. Invoicing for Funding Year 1 and 2 is unchanged.

-- Julie

Julie Tritt Schell

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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