How to prepare for eRate funding year 2014

Presently, schools and libraries that qualify for a 90-percent discount are in the most advantageous position for receiving support for Priority Two goods and services, but even these applicants are susceptible to receiving pennies on the dollar for their requests.

In order to receive discounts, consider shifting more costs to hosted/managed services that qualify as Priority One eligible, as opposed to seeking support for Priority Two goods and services that are likely to be denied.

Contrarily, with the slight probability that Priority Two funding is available, it might prove worthwhile to submit an application for traditional internal connections projects that will carry on with or without eRate backing. The key is to apply this method to expenses that already are budgeted and accounted for in full, so as to avoid allowing your financial health to hinge upon assistance that might never come.

Big changes could be here soon

The FCC has adopted the task of modernizing the eRate program to support the ever-increasing prevalence of technology within America’s libraries and classrooms. With the release of the FCC’s latest Notice of Proposed Rule Making (NPRM) over the summer, stakeholders across the country have joined the eRate conversation that is designed to get schools and libraries access to 21^st-century connectivity, streamline the application process, and fully ensure the cost-effectiveness of the program’s funds.

Driving this discussion is President Obama’s ConnectED initiative to connect 99 percent of the country’s students to the internet through high-speed broadband and wireless service by 2018. Currently, fewer than 20 percent of educators consider their school’s internet connections adequate for their teaching needs, according to a White House press release. “In a country where we expect free Wi-Fi with our coffee, why shouldn’t we have it in our schools?” Obama said in a recent speech.

With the spotlight placed squarely on eRate reform, the most sweeping changes since the program’s inception in 1997 are possibly on the cusp of realization.

With an almost no-holds-barred atmosphere, proposed changes run the gamut from increased funding to adopting a new priority system. Changes to the Eligible Services List, additional reporting requirements, new discount rates, and other modifications could be established as early as funding year 2014, but are more likely to arrive for the 2015 eRate funding year (see “eRate changes under review”).

At this point, the name of the game is agility. Consider including escape clauses and other “future-proofing” clauses in multiyear service agreements. These types of precautionary measures will protect you from getting trapped in a contract for a service that no longer qualifies for funding—or one that is no longer affordable because of decreased or non-existent eRate support.

Many of the public comments the FCC received suggest lowering discount rates for all applicants, as well as removing items from the Eligible Services List, such as plain old telephone service. Prepare for a possible future that includes losing support for certain services or receiving lowered discount rates, by leveraging as much as you can now. Push as many of your expenses as possible, including one-time fees and purchases, into funding year 2014. It could very well be your last chance.

John Harrington is the chief executive officer for eRate consulting firm Funds for Learning LLC: www.fundsforlearning.com.

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