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Update on FY 2007 Priority 2 E-rate Funding
Message Posted December 10, 2007

The SLD has just announced that they do not have sufficient funds to cover priority 2 funding requests at the 80% discount level and below for Funding Year 2007.  Requests in the 83 - 90% discount range are being funded, but it is still unknown whether they will have sufficient funding for the 81% and 82% discount level funding requests.  The announcement that the 80% priority 2 funding requests will not be funded has come as a surprise to close E-rate watchers because FY 2007 was the third year of the 2/5 rule, and because the FCC had rolled an additional $650 million from previous years into the annual cap of $2.25 billion, thus bringing the 2007 cap to almost $2.9 billion.

For those of you who keep track, below is a history of how far priority 2 funding has reached for each funding year:

1998 - 70
1999 - all funded
2000 - 82
2001 - 86
2002 - 81
2003 - 70 (significant rollover funds)
2004 - 81
2005 - 80
2006 - 86

If you have any questions, please don't hesitate to contact me at jtschell@comcast.net.

-- Julie