Applying for E-Rate: Getting Started

1
Applying for E-RateGetting Started

• California Charter Schools Conference
• Long Beach
• March 12, 2008

2
Session Description
Mark

• Charter schools are under-represented in E-Rate
  funding.
• What is E-Rate?
• Federal subsidy to schools and libraries
• 20 - 90 discounts
• Telecommunications and Internet
• For highest discount schools, also covers
  infrastructure (cabling, network equipment) and
  maintenance of infrastructure
• Major Dollars (2.25B national-wide)

3
Mark
Learning Outcomes

• Understand the program / process of E-Rate
  funding
• Ascertain to what extent E-Rate could benefit
  your school
• Get started with steps necessary to pursue E-Rate
  funding
• Review key elements required for an E-Rate tech
  plan

4
Mark
Take Aways

• Given CA budget outlook for 2010-2011, most
  charters cannot afford to NOT apply for E-Rate
• E-Rate is complex
• Trying to do it in-house to save money tends to
  result in funding denials
• Consider retaining professional help, at least
  the first few years
• We have prepared some Tips and Tools that can
  help
• Be sure to take away a copy of our free CDROM!
• E-Rate is a year-long process. For funding
  starting 7/1/2010, you should start the process
  NOW.

5
Co-Presenters
Mark

• Alice Marie Miller, CA Charter School Association
• Eileen Miller, The Miller Institute
• Mark L. Miller, Ph.D., The Miller Institute
• Bully Soares, Hawaii Charter School Admin Office

6
Announcing Strategic Alliance with ExED
Mark
7
Audience QA
Mark

• Electronic Show of Hands
• How many have ever applied for E-Rate?
• Never applied
• Applied for 2009-2010, first time
• Applied in past but never got funding
• Applied multiple times and got funded

8
Audience QA
Mark

• Electronic Show of Hands
• Have many have a Tech Plan that is
• (No Tech Plan)
• Written But Not Approved
• Governing Board Approved
• E-Rate (County) Certified
• EETT (CDE) Certified

9
Can You Afford to NOT do E-Rate?
Alice

• CA Outlook for 2010-2011 K-12 funding?
• Current best guess (not a pretty picture)
• 50 of CA students qualify for free/reduced lunch
• CA serves some of countrys poorest students
• E-Rate should be viewed as one element of overall
  tech funding strategy (major -- 2.25B),
  covering
• Priority 1 (ALL schools)
• Telecom
• Internet
• Priority 2 (highest discount schools, typically
  90 discount)
• Cabling Network Equipment (highest discount
  schools)
• Maintenance of Cabling Network Equipment

10
How Are E-Rate Discounts Computed?
Alice
STUDENTS QUALIFYING FOR NATIONAL SCHOOL LUNCH PROGRAM URBAN LOCATIONS RURAL LOCATIONS
lt 1 20 25
1 to 19 40 50
20 to 34 50 60
35 to 49 60 70
50 to 74 80 80
75 to 100 90 90
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Key Points About E-Rate Discounts
Alice

• Even schools serving well-to-do students earn at
  least 20 discounts
• Does not matter if you serve lunch or if kids eat
  lunch, or whether they are free or just reduced
  what matters is percent eligible for lunches
• Only highest discount schools (typically 75
  eligibility or 90 discount level in most years)
  receive Priority 2 funds
• Schools should estimate costs for preparing a
  tech plan and applying for E-Rate, versus savings
  and/or improved capabilities from E-Rate, and
  look at Return on Investment OVER 3 YEARS (most
  tech plans cover 3 years)

12
Other Tech Funding Sources
Alice

• CTF (CA Teleconnect Fund)
• 50 on circuits (you must also apply for E-Rate
  to fully benefit)
• EETT (Enhancing Education Through Tech)
• No Child Left Behind
• Microsoft Vouchers (K-12 if 40 FRE)
• 50-75/pupil, Anti-Trust Settlement
• Deadline to apply has passed but may redeem
  until 2012
• Grant Funding
• For that laptop cart, software
• Some tech funding inevitably must come from ADA

13
EETT
Alice

• Title II Part D
• Enhancing Education Through Technology
• Part of No Child Left Behind
• May get big boost (CA 73M) from Obama Stimulus
• Federal Program but implemented at state level
• Rules vary from state to state
• CDE requires more elaborate tech plans than many
  states
• To improve academic achievement through the use
  of tech in K-12
• Ensure student technological literacy by 8th
  grade
• Integration of technology resources and systems
  with teacher training and curriculum development
• Formula grant needs State-Approved technology
  plan
• Based on Title I students and population
• There are also competitive EETT grants

14
Miller Institute E-Rate Clients
Mark

• 76 Funding Requests for FY 2008-2009
• Potentially Impact gt 70,000 Students
• Total Funding Requests about 8M
• Two clients applications still pending
• None denied
• All others approved at close to amounts requested
• Applications for 2009-2010 completed 2/12/2009

15
Doesnt My District Do My E-Rate?
Mark

• Very often, no! Never assume!
• Even when included for Priority 1, districts
  often neglect the Priority 2 needs of charters
  serving high discount populations
• Direct-funded charters are normally expected to
  file independently and MUST HAVE SEPARATELY
  APPROVED TECH PLANS

16
E-Rate is Complex
Mark

• Schools must comply with numerous regulations
• What is eligible may not match common sense
• Many vendors (and consultants) try to scam the
  system -- with schools as the victims
• E-Rate is a hurry up and wait program with
  strict deadlines followed by long delays
• Vendors often promulgate misinformation and offer
  inappropriate types of assistance that taint
  competitive bidding

17
What E-Rate is NOT
Mark

• Technology funding with no strings attached
• Rebate on all that stuff you already bought
• Free money to buy that new computer lab
• Paperwork to get discounts while you just keep
  working with your favorite vendor
• Blank check for a shopping spree
• Risk-free
• Flexible
• Easy (Any HS student with a
• web browser could fill out the forms)

18
Funding Delays and DenialsA Few Real World
Examples
Mark

Denied 78,562
A contract for a new service was signed prior to the required 28-day waiting period computed from the date of the posting of the Form 470 to the SLD Web Site. Denied 168,714
The category of service was changed from Telecom to Internet Access in accordance with program rules. The FRN references services that require a posting of a 470 for each Funding Year. Denied 274,777
On 2/17/2006 your application was dismissed pursuant to the Red Light Rule which implements requirements of the Debt Collection Improvement Act. Denied 321,105
Tucson Unified School District -- Former consultant allegedly colluded with vendor and rigged outcome of bid 3 years of funding delayed, pending results of AG and FBI investigations
Applicant has not provided sufficient
documentation. The category of service was
changed from Telcom to Basic Maint in accordance
with program rules. The 470 cited did not include
service of this type therefore it does not meet
the 28 day competitive bidding requirement.
19
E-Rate Good Bad and Ugly
Bully

• A Brief Perspective from Hawaii
• The Good
• All that money for technology, you cant get any
  other way

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E-Rate Good Bad and Ugly
Bully

• A Brief Perspective from Hawaii
• The Bad
• Compliance Hell
• 15 Day Letters
• Dotting Is, Crossing Ts
• Selective Reviews

21
E-Rate Good Bad and Ugly
Bully

• A Brief Perspective from Hawaiis Charters
• The Ugly
• Fraud, Waste and Abuse
• Judy Green Scam
• TUSD Trillion/ERC saga
• Many examples of schools losing out due to
  corrupt vendors

22
Audience Participation
Mark

• Electronic Show of Hands
• Have many know of schools who lost significant
  funding due to
• Problems with competitive bidding
• Issues with dates on paperwork
• Forgot to file Form 486 after funding approved
• Forgot to invoice SLD for approved funds
• No tech plan, plan not approved, or plan expired
• Other compliance problems

23
Why You Need a Tech Plan
Mark

• Required for E-Rate
• which is now required for CTF
• Required for EETT
• Required for Microsoft Vouchers
• Required for all future tech funding
• Valuable fund-raising tool, even when not
  strictly required by donors
• Because failing to plan is planning to fail --
  but thats a whole other talk

24
Levels of Tech Plans
Mark

• Governing Board Approved Plan
• Informal document to guide decision-making
• No immediate funding benefit
• Valuable step toward E-Rate plan
• E-Rate (County-Approved) Plan
• Five key elements
• Substantial potential funding benefit
• Recently the sweet spot for charter schools
• EETT (CDE-Approved) Plan
• Typically a superset of E-Rate Plan (about a
  dozen elements)
• Each state sets additional criteria for approval
• CDE sets a very high bar (about 2x effort vs.
  E-Rate)
• States require alignment to State Tech Plan Goals
• Recently only modest incremental funding
  potential vs. E-Rate Plan, but Obama Stimulus
  might increase EETT funding

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Key Elements of Tech Plans
Mark

• School Background, Demographics, Educational
  Philosophy
• Stakeholder Participation
• Time Period (usually July 1 - June 30, next 3
  years)
• Curriculum Integration
• Professional Development
• Nuts Bolts (Infrastructure, Hardware,Technical
  Support, Software)
• Funding and Budget
• Monitoring and Evaluation
• Additional Topics as Required by States for EETT
  Approval

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Our Tips and Tools Can Help
Eileen

• Be sure to take away a copy of our CDROM
• If you didnt get one already, please stop by the
  Cyber Café for a copy, or give us a business
  card, or download from the web
• Tips are advice based on our experience with
  E-Rate, including answers to frequently asked
  questions, such as, What should I do if I
  havent gotten my Funding Commitment Decision
  Letter yet and it is July ? I need to start my
  services!
• Tools are checklists and information-gathering
  aids we generally use in conjunction with our
  school clients to ensure compliance and gather
  crucial information needed to file a form

? 2009, The Miller Institute for Learning with
Technology. Permission granted to K-12
institutions to copy for educational use only.
All other rights reserved.
26
27
Example Tool Form 470 Checklist
Eileen

• Form 470 is the first form in the annual E-Rate
  process
• However, you cannot file it until you have first
  completed a number of key steps, not the least of
  which is writing a tech plan
• This tool helps avoid funding denials caused by
  jumping the gun and starting the application
  process before you have met all the pre-requisites

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Example Tool Form 471 Impact Assessment
Eileen

• Form 471 is the main form in E-Rate application
  process.
• You describe your school, students, compliance
  with rules, and request funding for specific
  products and services.
• One part is Block 2 where you assess the impact
  that the funding will have on measures of your
  schools infrastructure.

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Example Tip E-Rate Binder
Eileen

• A key requirement for E-Rate funding is document
  retention.
• All documents must be kept for 5 years after the
  last date to receive service (may be 10 or more
  years).
• SLD may visit your school and ask to see your
  Binder.
• Our Tip helps you with organizing your Binder to
  remain compliant.

30
Example Tip Awaiting FCDL
Eileen

• The Funding Commitment Decision Letter is your
  notice that your funding has been approved (or
  modified or denied).
• If you start service before you receive the FCDL,
  you risk paying 100 when you budgeted for a
  healthy discount
• This Tip helps you decide what to do while
  waiting.

31
Mark
E-Rate is a Year-Long ProcessFor funding
starting 7/1/2010, start the process NOW

• gt 60 of Forms 471 are certified in the final
  week of the annual window (early February)
• During those final weeks, the SLD web site is
  slow, vendors are do not respond to RFPs from
  small charter schools, the Help Desk is staffed
  by temps, and serious mistakes become inevitable
• Work backwards 28 days allowing time for
  contract negotiations, time for Board to approve
  contracts Form 470 should be filed by October
• Work backwards from Form 470 checklist
  technology plan should be written by end of summer

32
Mark
E-Rate is a Year-Long Process(Working Backwards
from the 471 Filing Deadline)

• Working backwards from tech plan completion by
  end of summer, and factoring in teacher vacations
  -- teacher input is part of the rubric for tech
  plan approval -- work on the tech plan should
  begin no later than spring
• Hence, you should start work now in order to
  receive funding for 2010-2011 school year
• Most mistakes on E-Rate forms are caused by poor
  planning and starting too late

33
Mark
E-Rate Step by Step

• Start in the spring
• Estimate your discount level and strategize
• Discount dollars just too low to justify the
  effort?
• Worth pursuing Priority 1?
• Worth pursuing Priority 2?
• Review Eligibility of Entities
• Be careful about Pre-K, Adult Ed
• Do not include for-profits
• Avoid overlapping apps (District vs School)
• Sign Letters of Agency

34
Mark
E-Rate Step by Step

• Write a tech plan with teeth
• Say what you plan to do, in reasonable detail
• Not just platitudes and generalities
• Be sure it covers NEXT funding year, 7/1 - 6/30
• Most plans are for 3 years
• Update goals and budget annually, before 470
• Plan must address all 5 elements
• Never allow bidders to help write the plan
• Identify funding sources and budget for
• Schools share of eligible costs (e.g., 10)
• Necessary but ineligible costs
• Board approval of plan and budget
• Allow wiggle room in wording of resolution

35
Mark
E-Rate Step by Step

1. Time stamp your plan that is written before
   filing Form 470 and retain a copy in your binder
2. Determine which of the products and services
   needed in your plan are eligible for E-Rate
   discounts. If you will not seek Priority 2,
   treat otherwise-eligible Priority 2 services as
   necessary but ineligible costs
3. Prepare Form 470 online, describing the eligible
   services sought, in sufficient detail for bidders
   to understand your needs (6 phone lines, 3 Mbps
   Internet access, etc.)
4. Ideally, post an RFP on a web site to accompany
   the Form 470, giving greater detail as to needs

36
Mark
E-Rate Step by Step

1. Do not talk with bidders individually during this
   period. Never allow potential bidders to
   influence the contents of the 470 or RFP. Answer
   clarification questions by RFP Addenda on the web
   site. Insist that all communications occur by
   email and archive all correspondence.
2. Wait 28 days (29 to be safe).
3. Perform a formal bid evaluation with cost as the
   highest weighted factor. Document in a matrix
   showing the factors considered. Consider ALL
   bids. Ensure that bidders are authorized for the
   services.
4. Sign contract(s) with the winning bidders.
   Ensure that contracts have escape clauses in
   case funding is not approved.

37
Mark
E-Rate Step by Step

• File separate Form 471 for Priority 1 versus
  Priority 2
• Do not include low discount schools on Priority 2
  applications
• If uncertain about the eligibility of any
  request, break it into a separate funding request
  number FRN or even a separate 471
• Always file online. Ideally, certify
  electronically as well. Save your security
  codes. Triple-check every date. Save every
  document, even losing bids.
• Undergo Program Integrity Assurance PIA to
  answer reviewers questions about your 471.
  Never ignore or postpone answering SLD inquiries.

38
Mark
E-Rate Step by Step

• Receive FCDL and start services
• File Form 486, indicating that services have
  started and that you are compliant with the Child
  Internet Protection Act CIPA
• File invoicing forms (472, 474) to actually cause
  the money to be disbursed
• Start the cycle all over again for next year
• In the interest of brevity, we may have skipped a
  few details

39
Mark
Take Aways, Again

• Given CA budget outlook for 2010-2011, most
  charters cannot afford to NOT apply for E-Rate
• E-Rate is complex
• Trying to do it in-house to save money tends to
  result in funding denials
• Consider retaining professional help, at least
  the first few years
• We have prepared some Tips and Tools that can
  help
• Be sure to take away a copy of our free CDROM!
• E-Rate is a year-long process. For funding
  starting 7/1/2010, you should start the process
  NOW.

40
QAFor More Information
Mark

• The Miller Institute for Learning with
  Technology www.learningtech.org/erate
• erate_at_learningtech.org Tel [phone]
• This presentation is available online
• www.learningtech.org/erate/ccsa2009/
• Tips and Tools available on CDROM or via same
  URL.
• Schools and Libraries web site
• www.usac.org/sl

41
Audience Participation
Mark

• Electronic Show of Hands
• Based on what you have heard today, are you now
  planning to apply for E-Rate for 2010-2011?
• Definitely Yes
• Undecided
• Probably Not

42
Session Evaluation
Mark

• Please take just a few minutes to fill out the
  session evaluation form.