Major Changes to E-Rate Program

As schools plan their budgets for 2015-16 and beyond, they should be aware of major changes in the federal E-rate program. The application windows for E-rate are already open, and will close in mid-spring, so if you are not familiar with these changes, you might want to review the “Top 10 List of E-rate Changes” below.

10) Many products and services that were discounted in the past will no longer receive funding, including mobile hot spots, data plans, web hosting, email and voicemail.

9) The discounts for other popular services, such as phone lines, will be phased out over the next 2-3 years.

8) More money is being made available for broadband within buildings. While details are still emerging, it appears many Iowa districts that have not qualified in the past for any networking equipment discounts will now do so.

7) Many schools that have been considered “rural” in the past are being reclassified as “urban.” If your county has a “population center” of 2,500 or more, you will likely be considered “urban.” It is important to note that urban schools generally get a smaller discount.

6) The discount scales -- tied to free and reduced rates -- have changed considerably, and they jump by increments of 10 or even 20%, as opposed to 1%. This means a relatively small number of students could make the difference between, say, a 50% discount and a 60% discount for your school.

5) Major changes are coming to the 470 and 471 forms that are used for E-rate applications.

4) Technology plans are no longer required for any aspect of applying for E-rate funding.

3) Schools that have signed a multi-year contract for tech services will have to provide less documentation after the initial year of review from the E-rate service.

2) Document retention of E-rate forms has been increased to 10 years.

1) The E-rate program is strongly considering adding $2 billion to the total funding available over the next two years, which would be focused on providing broadband access within schools (firewalls, routers, switches, wireless access points, etc.).

If you would like to learn more about these changes, and some strategies that will help your school maximize your E-rate discounts, contact Pam Jacobs, Iowa Dept. of Ed, or Lance Wilhelm, Director of Technology.