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May 20, 2002

Introduction

The E-rate News for the Week, prepared by E-Rate Central, is sponsored by the Council of Chief State School Officers("CCSSO") and made possible by a grant from the AT&T Foundation. Official SLD news is in the "What's New!" section of the SLD's Web site . Additional information is on the State Education Telecommunications Alliance's ("SETA") Web site.

Funding Status Updates

FY 2002:

For the first time since the program's inception, the SLD is poised to have the majority of the applications for a given funding year processed before the year begins. Through Wave 3, funding commitments for FY 2002 have already been mailed to over 14,000 applicants. This represents almost half of the applications that are expected to be funded for the next funding year. With two more funding waves expected to be mailed in June, the SLD should be well over half by July 1. Note, however, that because smaller applications are generally being processed first, the dollar value of approved applications will likely be less.

The SLD is already receiving and processing Form 486s for funds committed in Waves 1-3. Form 486 Notification Letters will be mailed to applicants and service providers beginning next week. Applicants and vendors are reminded that FY 2002 discounts can be used only for services provided in that funding year (i.e., on or after ): BEARs or SPIFs based on next year's funding cannot yet be filed.

FY 2003:

Since late April, when the SLD began accepting new Form 470s for the FY 2003 funding year, over 200 Form 470s have been posted on the SLD Web site. Form 470 Receipt Acknowledgement Letters will be mailed beginning next week. Service providers can "Search Posted" Form 470s (see Apply Online Area).

FY 2002 CIPA and Form 486 Deadline Reminder

With limited exceptions, all applicants for FY 2002 funding for Internet Access and Internal Connection services need to be fully compliant with the Internet filtering and policy provisions of the Children's Internet Protection Act ("CIPA") by the time services start for the year (most commonly July 1, 2002). A currently approved technology plan must also be in place at the same time. Key links to CIPA information and a technology plan primer are available from the home page of our Web site.

One use of the Form 486 is to certify technology plan approval and CIPA compliance. As a result, there is a strict deadline for submitting Form 486s. They must be filed (i.e., postmarked) no later than 120 days after the date of the associated Funding Commitment Decision Letters ("FCDLs") or after the service start dates, whichever are later. For many applicants - those funded in Waves 1-5 (i.e., prior to the start of FY 2002) with services beginning July 1, 2002 - the Form 486 deadline is October 29, 2002.

Applicants missing deadlines for technology plan approval, CIPA compliance, or Form 486 submission will have their funding for FY 2002 reduced accordingly.

NSLP Income Eligibility Guidelines for 2002-2003

It is not too early to start thinking about discount rates for next year's Form 471 applications. Schools intending to use surveys to calculate and document income levels of their students may want to conduct their surveys in parallel with their normal summer mailing of free and reduced price lunch applications (see tips on optimizing E-rate discounts).

The new income eligibility guidelines for the National School Lunch Program ("NSLP") for 2002-2003 are now available on the U.S. Department of Agriculture's web site.