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Check this page often for eRate updates and reminders.

NJ schools chief fired after Race to the Top gaffe
New Jersey Gov. Chris Christie fired his education commissioner Friday, days after it was revealed that a simple mistake on an application form might have cost the state a $400 million education grant.
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California Delays $2.9 Billion School, County Payments Amid Budget Impasse
The state will delay paying $2.9 billion in apportionment funds to schools and counties in September, a month earlier than projected, to save cash amid an impasse that has left the state without a budget for 54 days. The state’s top financial officials — the Controller, Treasurer and Director of the Department of Finance told lawmakers yesterday that the deferred payments need to start next month instead of October to make sure there’s enough money to pay bond holders and maintain the state’s fiscal solvency. The delay is in addition to $3.2 billion the state pushed back in July.
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California a Finalist for Phase 2 of the Federal Race To The Top Competition
SACRAMENTO - State Superintendent of Public Instruction Jack O’Connell today issued the following statement after California was selected as a finalist in the competition to receive up to $700 million for education reform efforts as part of Phase 2 of the federal Race to the Top (RTTT) competition.
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White House Names Race to the Top Finalists
The Obama administration on Tuesday named 18 states and the District of Columbia as finalists in the race for federal money to help overhaul troubled schools.
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Congress Makes First Steps in the Federal Education Budget Process
Last Thursday the House Appropriations Subcommittee on Labor, Health and Human Services, and Education passed its fiscal year 2011 funding bill - the first step in the annual appropriations process that will determine funding levels for all but a few federal education programs. Fiscal year 2011 begins October 1st, 2010. Overall, the chairman’s mark included total funding of $176.4 billion, $1.5 billion less than the president’s 2011 budget request. This includes $72.0 billion for the Department of Education, $1.5 billion less than the president’s request and $7.7 billion more than the current year funding level.
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Departments of Education and Justice Announce Continuing Commitment to Accessible Technology for All Students

FCC Seeks Comment on E-rate Regulatory Changes
Schools and libraries nationwide are preparing for possible changes to the E-rate program for the 2010-2011 school year. The Federal Communications Commission (FCC) recently released a Notice of Proposed Rulemaking (NPRM) containing significant proposed changes to the regulatory structure of the E-rate program.
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Hundreds Vie for Promise Neighborhoods Planning Grants
More than 300 organizations are vying for 20 planning grants worth $500,000 each through the Obama Administration’s Promise Neighborhood initiative, data released Tuesday by the U.S. Department of Education show.
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35 States and D.C. Seek Share of $3.4 Billion in Race to the Top Fund
The second phase of the Obama administration’s Race to the Top competition drew applications from 35 states and the District of Columbia seeking to win a share of $3.4 billion provided by Congress to drive education reform. Between the current phase and the first phase, which drew 41 applications, 47 states have applied to this program.
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Landrieu, Kerry Introduce Legislation to Boost Broadband Internet Access for Small Business
United States Senators Mary L. Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, and John F. Kerry, D-Mass., introduced legislation to better assist small business owners in accessing broadband Internet technology. The “Small Business Broadband and Emerging Technology Enhancement Act of 2010,” S. 3506, addresses many of the recommendations from the Federal Communications Commission’s (FCC) March 2010 report entitled “Connecting America: The National Broadband Plan” which calls for increased broadband access for rural small businesses.
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Education Department launches open government tool
The Education Department has launched its pilot for data.ed.gov, an online tool for monitoring education data and funding.
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Education Initiatives Hit Political Head Winds
Two of the Obama administration’s signature initiatives-the economic-stimulus program’s Race to the Top competition and a massive expansion of federal School Improvement Grants-are running into some resistance on Capitol Hill.
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FCC Releases Draft FY2011 Eligible Services List
On June 9, 2010, the Federal Communications Commission released the draft Eligible Services List for Funding Year 2011. The draft list includes numerous proposed changes, including the removal of several “infrequently requested” services.
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Gov. Schwarzenegger Submits California’s Race to the Top Phase Two Application for $700 million in Recovery Act Funds
Governor Arnold Schwarzenegger today signed California’s Race to the Top Phase Two application which could provide up to $700 million in much-needed funding to our schools through the America Recovery and Reinvestment Act (Recovery Act). California’s application was developed by a working group of seven school districts superintendents who are committed to the reforms outlined as part of the Race to the Top goals.
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Synopsis of E-rate NPRM, Pt. II: Broadband Expansion
In part 2 of our NPRM analysis, we look at the Commission’s proposed expansion of broadband connectivity. By seeking comment on the expansion of program guidelines, eligibility of dark fiber and adjustments to the funding cap, the Commission is looking to increase broadband access and improve student achievement.
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Stakeholders fight for ed-tech funds
School technology leaders say continued funding of EETT is necessary for students’ 21st-century success
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Historic Lawsuit Challenges California’s Unconstitutional Education Finance System
A historic lawsuit was filed today against the State of California requesting that the current education finance system be declared unconstitutional and that the state be required to establish a school finance system that provides all students an equal opportunity to meet the academic goals set by the State.
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USAC Provides Additional Detail about $900 Million in Unused Funds
Last week Funds For Learning reported that at the Universal Service Administrative Company’s (USAC) Quarterly Board Meeting, administrator’s revealed that $900 million in unused funds are available for use to supplement current and future requests for E-rate discounts. In its quarterly report to the Federal Communications Commission (FCC), USAC reported the complete breakdown of unused funds by Funding Year. The amount of unused funds increased $400 million over the last quarterly report issued in February 2010. Based on the FCC’s Third Report and Order, the FCC can direct USAC to apply unused funds to increase the amount of available funding for a particular funding year.

USAC reported the breakdown of unused funds by year as follows:

• FY 2002 - $25 million
• FY 2005 - $100 million
• FY 2006 - $300 million
• FY 2007 - $375 million
• FY 2008 - $100 million

The quarterly report also highlighted the number of potentially fundable applications they have left for each funding year as of March 31st, 2010. The breakdown is as follows:

• FY 2001 - 2 potentially fundable applications
• FY 2002 - 2 potentially fundable applications
• FY 2003 - 5 potentially fundable applications
• FY 2004 - 44 potentially fundable applications
• FY 2005 - 49 potentially fundable applications
• FY 2006 - 99 potentially fundable applications
• FY 2007 - 186 potentially fundable applications
• FY 2008 - 372 potentially fundable applications
• FY 2009 - 1756 potentially fundable applications

The Quarterly Report also highlights that the SLD will continue to expand their CIPA review process; however, the results from the last year indicate CIPA compliance remains “generally high”.

Log on: Virtual school could be on the way
Next winter, Merced High School students could be learning algebra on laptops in the comfort of their own homes.

The Merced Union High School District received school board support Wednesday night to apply for a $30 million i3 grant, a competitive grant funded through the U.S. Department of Education with money from the American Recovery and Reinvestment Act (ARRA).
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SETDA 2010 National Educational Technology Trends
The State Educational Technology Directors Association (SETDA) is pleased to release its seventh annual report on the technology section (Enhancing Education Through Technology, Title II, Part D) of the Elementary and Secondary Education Act (ESEA) of 1965, as amended by the No Child Left Behind Act of 2001, herein referred to as Title II-D. This annual report provides a national perspective on Title II-D for federal fiscal year (FY) 2008 (2008-09 school year), as well as emergent trends based on data from the past seven years.  Data presented here are based on surveys completed in fall 2009 by state educational technology directors from the 50 states, and reports from the U.S. Department of Education (ED).
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SLC Anticipates $900 Million Available for Rollover
At the Schools and Libraries Committee (SLC) of USAC’s quarterly board meeting held earlier today, it was reported that approximately $900 million of unused E-rate funds from previous years could be used to increase available funding for Funding Year 2010. The full details of the source of the funds will be released next week in USAC’s quarterly report.
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National Broadband Plan/E-Rate Update (from E-rate Central)
As a first step in implementing its National Broadband Plan, the FCC issued the first in a series of comprehensive Notices of Inquiry (”NOIs”) and Notices of Proposed Rulemakings (”NPRMs”). The first set focuses on the High Cost program, one of four Universal Service Fund (”USF”) programs. High Cost is the largest and most complex of the USF programs - E-rate is the second largest - which, until recently capped on a temporary basis, had been growing ever larger.

This first proceeding (see FCC 10-58) is aimed at cutting inefficiencies in existing support of voice services and creating a Connect America Fund (”CAF”) that directly supports broadband without increasing the size of the USF over the current baseline projection.

The NOI portion deals with “…the use of an economic model to precisely target support for areas where there is no private-sector business case for carriers to provide broadband and voice services.” It also “…seeks comment on how to quickly provide consumers in unserved areas with broadband access while the Commission is considering final rules to implement fully the new CAF funding mechanism.”

The NPRM portion “…seeks comments on a number of proposals to cut legacy universal service spending in high-cost areas and to shift support to broadband communications. These proposals include capping the overall size of the high-cost program at 2010 levels; re-examining the current regulatory framework for smaller carriers in light of competition and growth in unregulated revenues; and phasing out support for multiple competitors in areas where the market cannot support even one provider.”

• The FCC’s first step does not directly affect E-rate, but is important nevertheless because:
  The sustainability of USF funding for E-rate at its current level - not to mention the possibility of expanded E-rate funds - is tied necessarily to the size and stability of the entire Fund; and 
• Early action by the FCC in implementing this aspect of the National Broadband Plan is a strong indication that the FCC will move forward on other aspects of the Plan (including E-rate) in an expeditious manner.

Comments on the first NOI/NPRM will be due 60 days after its publication in the Federal Register; reply comments will be due 30 days thereafter.

Big Steps for National Education Technology Plan-Cator says ambitious technology plan is not lacking funding.
“It’s 2010, and the world has changed,” says Karen Cator, director of the Office of Educational Technology for the U.S. Department of Education and former Apple executive. “Technology is going more mobile.”
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California To Make Second Attempt in Race to the Top
Race to the Top is a $4.35 billion federal initiative to reshape America’s educational system and to prepare our students for success in a competitive 21st century economy and workplace. The US Department of Education’s goal with Race to the Top is to spur progressive reforms in K-12 education at both the state level and local district level. California was one of 40 states seeking Phase One funding from Race to the Top. Unfortunately, California did not make the cut in this round of the competition. “I am disappointed that California was not selected as a finalist in Phase One of the Race to the Top competition,” shared California Superintendent of Public Instruction Jack O’Connell.
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Overview of California’s issues with the Race To The Top Funding from the Center for Digital Education
“According to an article in the Sacramento Bee, California stands to lose out on up to $700 million in federal education money because of two entrenched problems in the state’s public schools: a contentious relationship with the teachers union and a weak data system for tracking student performance. State education leaders are now deciding whether California should even bother to reapply, given its monumental weaknesses in the first round. While the application doesn’t require support from local school districts and teachers unions, federal reviewers give points for every entity that signs on. In California’s first application, about half of local districts said they would participate and in those districts, only a quarter of the teachers unions signed on.

Second-round applications are due June 1. California would have to make enormous changes in the next two months to address the shortcomings noted by federal reviewers. The federal government wants states to create thorough data systems that track student performance over time. California still can’t provide an accurate high school graduation rate because its student tracking system is so new. “Given that California is in the beginning stages of developing its longitudinal data system, there is major concern about the State’s ability to have the system in place to meet its reform goals within the grant period,” federal reviewers wrote. But whether state leaders will stick with the Race to the Top agenda remains to be seen. Term limits for Schwarzenegger and O’Connell mean California’s Race to the Top boosters will soon be leaving office.”

FCC Announces Broadband Action Agenda

USAC Provides Demand Estimate for Funding Year 2010 to FCC
On March 10, 2010, the Schools and Libraries Division of the Universal Service Administrative Company (USAC) reported to the Federal Communications Commission that $3.92 billion in requested funding has been estimated for schools and libraries seeking discounts for Funding Year 2010. This estimate is based on the dollars requested in 42,713 applications received or postmarked by February 19, 2010, the close of the Form 471 application filing window.

There are several factors that will reduce ultimately the funds requested from the estimated level. First, while efforts have been made to eliminate duplicate requests, inevitably we will discover more duplication as we process these applications. Second, USAC’s efforts to assure that funds are committed only for eligible services, for use by eligible entities with the appropriate discount rate, and are otherwise consistent with program rules, will further reduce the demand.

Win up to $50,000 from the i3 Fund - Investing in Innovation Fund
The Investing in Innovation Fund, established under the American Recovery and Reinvestment Act of 2009 (ARRA), provides funding to support local educational agencies (LEAs) nonprofit organizations in partnership with one or more LEAs or a consortium of schools. The purpose of this program is to provide competitive grants to applicants with a record of improving student achievement and attainment in order to expand the implementation of, and investment in, innovative practices that are demonstrated to have an impact on improving student achievement or student growth, closing achievement gaps, decreasing dropout rates, increasing high school graduation rates, or increasing college enrollment and completion rates.

These grants will allow eligible entities to expand and develop innovative practices that can serve as models of best practices, allow eligible entities to work in partnership with the private sector and the philanthropic community, and identify and document best practices that can be shared and taken to scale based on demonstrated success.

USAC Looking to Conduct More IPIA Assessments
An RFP posted to USAC’s website reveals plans to conduct more audits checking for compliance to the requirements of Improper Payments Information Act (IPIA) . USAC is looking to hire a firm to assess how much of their disbursements are susceptible to improper payments. The IPIA audits are designed to “…ensure the accuracy of USAC payments to program applicants and evaluate the eligibility of program applicants who have received payments…”

The RFP also reveals plans to conduct the audits off-site of applicants’ locations.

According to the RFP, approximately 60 audits per month are to be completed over the course of the year contract.  These assessments are in addition to the compliance audits that USAC routinely conducts. 

USAC Releases 2009 Annual Report
The Universal Service Administrative Company (USAC) has released its 2009 Annual Report. Among the goals of the Annual Report is to provide the Federal Communications Commission and Congress details about the non-profit company’s activities, expenses, and performance measures regarding it’s management of the Universal Service Fund programs.  

The E-rate program is one of the four Universal Service Programs administerd by USAC.

Highlights from the report include:

• USAC expenses increased by $15 million from 2008.  The report states that “…overall general and administrative expenses increased because of costs associated with implementing the large-scale FCC Office of Inspector General USF audit program…”
• USAC had hired 9 auditing firms to audit all four USF program beneficiaries
• There were 3,878 E-rate service providers in 2009 down from 4,064 in 2008
• There were over 21,000 E-rate applicants in 2009
• On average, USAC continues to process E-rate payments in ten days or less
• Approximately 13.6% of submitted invoices (BEARs and SPIs) are denied
• The improper payment rate dropped approximately 33% since the FCC OIG initially reported the improper payment rate at 12.9% in 2007.  USAC is now reporting their improper payment rate dropped to 8.6%
• USAC is typically processing E-rate appeals between 49 and 128 days after their submission.

The 2009 USAC Annual Report can be viewed here.