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Year 5 Internal Connections Funding to Stop at 81%
Year 6 Internal Connections Funding Will Not Reach Below 70%

(71-90% uncertain at this time)
Message Posted June 17, 2003

Year 5
The SLD has announced that it will be unable to fund Year 5 (FY 2002) Internal Connection (Priority 2) requests at the 80% discount rate. Previously they stated that they knew they could not fund FRNs with discounts at the 79% level or below, but all other applications were pending. As you know, all approved priority 1 requests (telecom and internet) were funded entirely.

Year 6
The SLD also announced that it had determined that Year 6 (FY 2003) Internal Connection requests will definitely not be funded below 70%. At similar stage last year, the decision had been that funding would not be available below 80%, so this announcement provides encouragement that FY 2003 Priority 2 funding will reach down to at least 80% and, perhaps, to somewhere in the 70-79% discount rate band. All approved priority 1 (telecom and internet) requests will be funded.

In reaching this decision, the SLD also has explicitly determined that no funding will be available for applications received after the close of the original Year 6 filing window on February 6, 2003. Applicants who submitted late Form 471s should be notified shortly.

What does this mean for you?

Year 5: If you had a priority 2 request at the 80% level, it will not be funded and you will be receiving a letter shortly advising you of this decision.

Year 6: If you submitted a priority 2 request for 70% or above, your application will be in a holding pattern as they fund the 90% FRNs first, then the 89% FRNs, etc. As you know, it takes months for these decisions to be made. This news is actually great news for 80% discount applicants.

Year 7: If the FCC finally makes some adjustments to the way priority 2 requests are funded, applicants at most discount levels should consider applying for needed internal connections funding. We're hoping that the SLD's decision to make the cut-off below 70% for the time being is an indication that the higher discount schools and libraries are wired and more funding will be available for other needy institutions. I'll keep you posted on developments before the Year 7 funding window opens.

Julie Tritt Schell

jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)

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