FCC Injects Additional Money into Year 6 (2003-2004)
Message Posted January 5, 2004
** The FCC recently adopted the 3rd Report and Order ("Order") which has
several significant changes to the E-rate program. This message is one of
several that I'll be sending on various topics (several are too important to
be sent in a list). **
Over the last year, I have been telling you that the FCC was planning to
roll-over unused funding (approx. $500 million) from prior E-rate years into
a future funding year instead of using the funds to reduce the contributions
being made by the telecom carriers into the Universal Service Fund. The
FCC's recent Order stated that the funding year the prior years' funds will
be rolled into will be the current funding year (Year 6, 2003-2004).
Originally, the presumption was that the roll-over would be into Year 7
(2004-2005).
This means that instead of having $2.25 billion to commit this year, the SLD
will have $2.75 billion. The current discount level being funded for
internal connections is 85%, but we believe that with these new funds, the
discount threshold will reach at least 80%, if not even lower.
For those of you at the 60-80% discount levels who were counting on this
funding for Year 7, don't worry. We believe there will be additional
funding rolled over into that funding year as well, although the amount is
yet unknown.
The moral to this tale is that almost all applicants that are in need of
internal connections equipment or wiring should apply for E-rate discounts
because in any given year, you never know what discount level the funding
will reach.
Julie Tritt Schell
jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)
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