2/5 RULE ON INTERNAL CONNECTIONS
Message Posted February 15, 2005
I'm writing to provide some clarifications on the SLD's new 2/5 rule, which
begins in Funding Year 8 (2005-2006). The 2/5 rule states that Internal
Connections funding will be limited to two years over any five year span.
The new rule is designed to discourage schools and libraries from replacing
or upgrading equipment every year, and limit abuse of program funds.
1) I refer to the years that you receive internal connections funding as
"strikes", for lack of a better word. And if a school receives funding for
a school building in a given year (a "strike"), it doesn't matter if the
strike is for $5 or $500,000. Therefore it's extremely important for
schools receiving internal connections funding to plan out their technology
purchases so that you apply for all equipment needed for a school in their
two "strike" years.
2) The funding limitations will apply on a site-by-site basis -- not a
district or library system basis -- and will be administered using the
entities listed in Block 5, Item 22. And if you purchase a piece of
equipment that will be providing services to several schools (such as a
voice mail system that services multiple buildings), each building being
serviced by that equipment would receive a "strike."
3) This rule pertains to funding, not application. So if a 70% school
applies for internal connection but isn't funded, that year wouldn't count
as one of their 2 years. Similarly, if a school is funded, but cancels the
funding request using a Form 500, that year also wouldn't count as a
"strike."
4) Only internal connections requests funded in Year 8 (2005-2006) and
subsequent years is covered by the rule. Funding for any previous year does
not count, regardless of when the equipment is installed.
5) The 2/5 rule does NOT include maintenance of Internal Connections
equipment; discounts on “basic” maintenance service may be applied for every
year, and you'll see a separate category on Block 5 of the 471 where you can
select "basic maintenance of internal connections." The problem with this
new category is that you must break out all maintenance costs into two
separate FRNs. So if you have a piece of Cisco equipment, and you also
purchase SmartNet maintenance, you must apply for the equipment on one FRN
(under Internal Connections) and then apply for the SmartNet maintenance on
another FRN (under Basic Maintenance of Internal Connections).
The SLD's guidance on the 2/5 rule is available at:
http://www.sl.universalservice.org/reference/two_out_of_five.asp.
Julie Tritt Schell
jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)
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