Using PPEL to Cover Internet Connectivity Costs

Many administrators and tech directors are under the impression that districts can't pay for Internet connectivity costs out of Physical Plant and Equipment Levy (PPEL). The thought is that you can pay for connectivity equipment such as a router or a switch, but not the Internet service itself.

However, on the Department of Education's website, in the FAQ in the declaratory order about how you can fund computing purchases, it states:

Question: Can a district pay for contracted technology services from PPEL?
Answer: Yes, as long as the cost, whether stand alone or part of a bundle, meets the definition of technology in this Declaratory Order, meets the $500 per unit (stand-alone unit or bundled technology unit, as applicable) cost threshold in PPEL, and is in reality a license renewal fee; a technical assistance support contract; an internet subscription license or fee; or a cable or satellite service.
 
Nicole Proesch (nicole.proesch@iowa.gov) of the DE indicates that you can, indeed, spend PPEL funds, as long as the amount of the agreement is over $500. Districts can also use their sales tax funds (SAVE) for Internet subscriptions, as long as technology was listed in their revenue purpose statement (RPS).

From Nicole: 

"Any Internet subscription from any provider which meets the definition of “technology” as defined in rules and law would be allowable from PPEL if it meets the more than $500 per purchase/transaction threshold. So an annual subscription probably will be more than $500. Month-to-month is just a purchased service cost and would not likely meet the more than $500 for each monthly purchase. A district needs to look at the contract to determine the length of the district’s obligation for that service and the total costs in the contract, because districts might make payments monthly on an annual or multi-year contract. That would be different than simply paying a monthly bill that the services can be terminated or cancelled by the district. SAVE can be used for any PPEL purposes if that is the language the district used in its RPS."