FY 2015 E-rate Demand Analysis

May 18, 2015

~ 432 PA Applicants Will Receive Category 2 Funding ~

The SLD has released their FY 2015 demand funding analysis for all applications that were filed within the FY 2015 Form 471 filing window.   Because of the phase-down of voice services, elimination of services and equipment, the new C2 per-pupil budget, and increase of available C2 funding, it’s difficult to draw too many comparisons between FY 2015 and previous years.  However, here are some initial conclusions from PA’s 2015 applications:

— 52 fewer PA applicants applied for Category 1 services in FY 2015 than in FY 2014, likely due to the phase down of voice services and elimination of webhosting services.
— Due to the changes in C2 funding and eligibility, 432 PA applicants applied for and will receive C2 funding — compared to 126 who applied for and received no funding in FY 2014.
— Although many PA schools’ C2 budgets were entirely used, not many districts maxed-out their C2 budgets for ALL of the schools in their district.
— About 43% of PA applicants filed their Form 471 on or before the original March 26 deadline.   In fact, about 40% of PA applicants filed the last week of the Form 471 window.

Nationwide:  Nationwide total demand for Category 1 and Category 2 funds was $3.92 billion, which is $900 million less than in FY 2014.  This decline is most likely due to the 20% reduction in voice services, and the elimination of webhosting and most cellular data services.  Category 2 demand was $1,665,204,079 which will be fully funded without increasing the USF contribution rate because the FCC announced it will use the entire $1.575 billion in “rollover funding” that is available from previous funding years.  The current $2.41 billion cap, plus the $1.575 billion in rollover funds, totals $3.98 billion, which covers the entire $3.92 billion in demand.  A total of 48,404 Form 471s were received (3215 more than last year).  The nationwide breakdown by service category, compared with FY 2014, is provided below.

Pennsylvania:   In PA,a total of 5292 FRNs were filed (41 less than last year), by 1255 different school and library entities (1 less than last year).  In FY 2015, several school districts, libraries and nonpublic schools chose not to apply for Category 1 funding, most citing the reason as their E-rate funding would have been so minimal, due to the phase out of voice services, elimination of cellular data plans and webhosting.  The good news is that the public school districts that opted not to apply for C1 funding this year are all connected to their IU’s regional WANs; thus, 100% of PA public school districts continue to receive E-rate funding.  The statewide breakdown by service category, compared with FY 2014, is provided below.

As always, if you have any questions, please let me know.

— Julie

Julie Tritt Schell
PA E-rate Coordinator

717-730-7133 – o
717-730-9060 – f
jtschell@comcast.net
www.e-ratepa.org