E-Rate Funds Available To Help Support Communication and Technology Needs for the Education of Youth Who are Neglected or Delinquent

In NDTAC’s recent Webinar, “Measuring Success: Examples of State and District Data Collection Systems,” presenters and participants discussed funding sources for computer- and Web-based data collection systems. Frank Plaistowe of the Los Angeles County Office of Education, Alternative Education and Juvenile Court and Community Schools, discussed how L.A. County has leveraged funds from the Federal E-Rate program to defray the costs of building and maintaining their data system. The following provides an overview of the program and includes information to help your local education agency or facility take advantage of this funding opportunity and expand opportunities for the education of youth who are neglected or delinquent (N or D).

What is E-Rate and how is it structured?

The Schools and Libraries Universal Service Support Mechanism, or E-Rate, provides subsidies to public and private schools, libraries, and consortia of libraries to help with the purchase of telecommunications services, Internet access, and internal networking equipment. Service and equipment discounts range from 20 to 90 percent and depend on the level of poverty and urban or rural status of applicants. E-Rate funding comes from a Universal Service fee charged to telecommunications service providers, including most local phone companies. The program is administered by the Schools and Libraries Division of the not-for-profit Universal Service Administrative Company (USAC) and is overseen by the Federal Communications Commission (FCC).

Who is eligible for E-Rate support?

E-Rate support is available to public and private schools, libraries, and consortia of libraries. Eligible schools must meet the statutory definition of an elementary or secondary school as defined in the No Child Left Behind Act of 2001, or be a nonprofit institutional day or residential school that provides elementary or secondary education, as determined under State law. Eligibility of institutions serving youth who are neglected or delinquent, including juvenile correctional facilities, may differ from State to State and from institution to institution.

The level of support a school can receive from E-Rate depends on the number of students eligible to receive a free or reduced-price lunch. In many States, a student that has been adjudicated becomes a ward of the State, is therefore considered a member of a family of one, and thus meets the poverty requirement. In the highest poverty areas, schools may receive funds to cover up to 90 percent of their eligible services and products. The minimum support an eligible school can receive is 20 percent of eligible services. Note that the FCC has established two priorities for the distribution of E-Rate funds. Priority 1 applies to telecommunication services and Internet access, while Priority 2 applies to internal networking equipment. Priority 1 requests will receive first priority in the allocation of available funds. Priority 2 requests will receive priority after Priority 1 needs have been met and will be addressed in order of the magnitude of need as determined by school poverty levels.

For what expenditures may E-Rate funds be used?

Eligible expenditures fall into one of three categories:

1. Telecommunication services (e.g., basic telephone service, cellular phone service)
2. Internet access (e.g., Internet service provider (ISP) charges such as dial-up or high-speed/broadband service)
3. Internal networking equipment (e.g., the infrastructure needed to establish a local area network (LAN) including servers and switches, as well as vendor maintenance costs)

Note that E-Rate funds may not be used to support a number of related technology expenses including instructional software, personal computers, and other types of equipment. USAC provides a comprehensive list of services and products that are eligible for E-Rate support on its Web site.

How can I apply for an E-Rate discount?

USAC offers step-by-step application instructions on their Web site. E-Rate applications require the submission of a fully developed school technology plan, an understanding of the services or products sought, and a completed application. Interested N or D facilities may want to check with their local or State education agencies to identify if they can receive support in completing the application requirements. In some cases, entire districts apply for support and may be able to support an N or D facility without a separate application.

Where can I learn more?

USAC provides a considerable amount of information on their Web site. In addition to general reference information, FAQs, and instructions, USAC also provides State Funding Reports, which detail how specific schools and libraries have used E-Rate funds by State since 1998.

Published August 2005

Measuring Success: Examples of State and District Data Collection Systems
In a recent NDTAC Webinar, presenters Frank Plaistowe and Ned Loughran discussed how their National, State, and District data systems are helping to ensure that N or D performance goals are met, and how these data systems have impacted the quality of service provision. more »

Ten eRate mistakes to avoid at all costs
During an eRate training session in Washington, D.C., on Sept. 30, USAC's Catriona Ayer listed the 10 primary reasons eRate applications are denied.

For additional resources related to data collection, see NDTAC's Assessment and State Data Systems library page.

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