Wave 24 Funding for FY 2002
Wave 24 of Funding Year 2002 will be released on Monday, March 10, 2003. Total funding in this Wave is approximately $49 million for 75 applications. The cumulative total for FY 2002 is now $1.83 billion for 28,550 applications.
Although Wave 24 does not involve an unusually high level of funding awards, it is likely to prove significant in several other ways.
(1) March 10th is important because, as announced last month, the SLD had established that date as its goal of completing the review of all the remaining FY 2002 applications (or at least of all applications not subject to special reviews or investigations). We believe that the SLD did not fully meet this goal and that there are still a number of actionable applications outstanding that are either more complex or are awaiting a determination of funding availability for Internal Connections at the 80 - 89% discount level. Most other FY 2002 applications that are still pending at this stage likely fall into the special review category. Many are apparently awaiting decisions on broader questions of specific vendor practices.
(2) More important than the actual funding awarded in Wave 24 may be the number and scope of funding denials issued. Based on a quick, but targeted, analysis of the SLD's Application Status data (see the Apply Online section of the SLD Web site), it appears that the FCDLs to be mailed on March 10th will address applications involving well over $500 million in funding requests. Since less than $50 million in funding is being awarded in Wave 24, this suggests that an unusually large amount of requests, involving certain large city school districts and a specific vendor, are being denied. Although additional information on these denials is expected this coming week, we believe that they are related to a "Warning to Funding Year 2003 Applicants and Service Providers Regarding Application Patterns That Violate FCC Rules" issued in December (see SLD Warning).
(3) Internal Connection funding in Wave 24 is still being provided only for applicants at the 90% discount rate. Applicants awaiting a SLD determination of funding availability at the 80 - 89% level should be heartened by the scope of denials in this Wave, most of which involved Internal Connection funding requests at the 90% level. Depending upon SLD reserve requirements and additional denial actions, a decision to reduce the discount threshold for Internal Connection funding should be forthcoming shortly.