While there is a general consensus that the country has largely re-covered from the Great Recession that began back in 2008, trytelling that to K-12 administrators. According to research conductedby the Center on Budget and Policy Priorities, half of the statesi in thenation still provide less “general” funding—the primary form of statefunding for schools—per student than before the economic collapseeight years ago. In seven states, budget cuts exceed 10 percent.

Burdened by nearly a decade of declining budgets, administratorshave been forced to make difficult sacrifices. For instance, many dis-tricts continue to rely on outdated legacy telecommunication systems,which are expensive to maintain and operate, due to the upfrontcosts of more modern solutions. Despite President Obama’s 2013ConnectEd Initiative to provide high-speed broadband Internet to 99percentii of American schools by 2018, the reality is that, without fi-nancial aid, many districts will fall short of that goal. Administratorshave been put in the position of choosing between cutting other im-portant services or using outdated technology in the classroom.

The calls from teachers, parents and government officials alike for theK-12 education system to leverage cutting-edge technology comesfrom a shared understanding that success in tomorrow’s economywill require today’s students to develop a level of comfort using digi-tal tools. Without the tools to provide such skills, however, school ad-ministrators know they’ll be selling their students short.

Fortunately, where state funding has fallen short, the Federal Com-munications Commission’s (FCC’s) Schools and Libraries program,also known as the E-rate program, has picked up some of the slack.

What does the future hold for E-rate?With the passage of the E-rate Modernization Order, the annualbudget for the program was increased to $3.9 billion, a 63 percentjump. The budget increase opens the door to a number of modifica-

Started in 1996 as a means to connect schools and librariesto the Internet, E-rate is the government’s largest educationaltechnology program. It is funded by fees charged by the fed-eral government to companies that provide interstate or inter-national telecom services.

School funding falls into four major categories: telecommunica-tions services, Internet access, internal connections and basicmaintenance of internal connections. The government providesdiscounts on these services that range anywhere from 20 per-cent to 90 percent depending on both the poverty level andthe geography of school districts applying for funding.

In 2014, the FCC overhauled the program through the E-rateModernization Orderiii, bringing sweeping changes, slated to rollout this year, that will improve administrators’ ability to meet thedemand for technology upgrades in schools across the country.

i http://www.cbpp.org/research/state-budget-and-tax/most-states-have-cut-school-funding- and-some-continue-cuttingii https://www.whitehouse.gov/issues/education/k-12/connectediii https://www.fcc.gov/general/summary-e-rate-modernization-order

tions to the E-rate program that administrators should take care to un-derstand so they can leverage them in their schools’ best interests. Hereare some of the major changes, as reported by Education Weekiv:

• New opportunities to secure E-rate funding for dark fiber• The option to build their own networks in cases where multiplebids are not available and it is more cost-effective

• Availability of rural school rates comparable to those offeredto urban districts from telecom companies receiving subsidiesthrough certain government programs

• Matching E-rate funding of up to 10 percent of state-paidconstruction costs to incentivize state spending

• Greater financing flexibility for high up-front costs to enableschools to undertake large projects more quickly

• A shift away from providing funding for legacy telecoms

How can your district make the most of E-rate funds?E-rate eligibility is determined based on two primary factors: thepercentage of students eligible for the National School Lunch Pro-gram (NSLP) and whether your school is in an urban or rural set-ting—with preference given to urban schools. Rural school districtscan receive a slightly higher discount in cases where up to 49 per-cent of their students are eligible for the NSLP.

Cox Business is also a proud partner of Connect2Compete, which of-fers discounted high-speed internet to low-income families, along withaccess to devices that can help them succeed beyond the classroom.A founding member of Cable in the Classroom, which provides com-mercial-free programming and online resources to 81,000 schools.

You can also leverage alternative poverty level indicators, such asthe federal free milk program or Medicaid data. If your school hasa higher participation level in one of these programs than in theNSLP, you may qualify for greater discounts.

As you consider how to best use E-rate funds, focus first on projectsthat will have a demonstrable impact on your district’s bottom line.

That is, although furnishing your classrooms with new computersmay be your end goal, invest first in projects that will save moneythrough reduced energy consumption or maintenance, such asvoice services or cloud-based Internet connectivity solutions. Use themoney saved to support new projects.

How can you get started?Thanks to the 2014 E-rate Modernization order, projects can now beundertaken as early as April, rather than July, of a given fiscal year.While this means schools will have the added benefit of an entiresummer to complete large-scale projects, it also means that adminis-trators need to have their applications for funding ready sooner.

Securing E-rate funds is not as simple as filling out an application. Infact, you must maneuver six steps to complete the process:

• get multiple competitive bids when available • select service providers• apply for discounts• application review• starting services• invoicing You can see more specifics about each step herev.

You’ll also do yourself a disservice if you don’t consult with a telecomprovider that can customize solutions to meet your school district’sneeds. Work with a partner that can provide the full range of servicesavailable through E-rate funding to take broad advantage of thebenefits of the program.

Budget limitations present real challenges for schools, which can makesupporting your technology needs difficult. Thankfully, many solutionscan be purchased at discounted rates, thanks to E-Rate funding. Thededicated professionals at Cox Business have an extensive historyworking with schools and libraries to customize solutions that align withE-Rate guidelines. We’ll work closely with your school and help you un-derstand how E-Rate can apply to your specific circumstances.

iv http://www.edweek.org/ew/articles/2015/01/07/e-rate-undergoing-major-policy-budget-upgrades.htmlv http://www.universalservice.org/sl/applicants/