K-12 school funding has not fully recovered since the 2008 recession, leaving many schools with outdated technology. The E-rate program provides discounts to schools for internet access and infrastructure upgrades, helping to address budget shortfalls. Recent changes to E-rate include a 63% increased budget, opportunities for rural schools to build their own networks, and allowing projects to begin earlier in the fiscal year. Administrators should work with E-rate approved partners to submit applications and take advantage of available discounts and services to modernize their networks.

1. While there is a general consensus that the country has largely re-
covered from the Great Recession that began back in 2008, try
telling that to K-12 administrators. According to research conducted
by the Center on Budget and Policy Priorities, half of the statesi
in the
nation still provide less “general” funding—the primary form of state
funding for schools—per student than before the economic collapse
eight years ago. In seven states, budget cuts exceed 10 percent.
Burdened by nearly a decade of declining budgets, administrators
have 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tricts continue to rely on outdated legacy telecommunication systems,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 upfront
costs of more modern solutions. Despite President Obama’s 2013
ConnectEd Initiative to provide high-speed broadband Internet to 99
percentii
of American schools by 2018, the reality is that, without fi-
nancial aid, many districts will fall short of that goal. Administrators
have 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portant services or using outdated technology in the classroom.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 the
K-12 education system to leverage cutting-edge technology comes
from a shared understanding that success in tomorrow’s economy
will 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 annual
budget for the program was increased to $3.9 billion, a 63 percent
jump. The budget increase opens the door to a number of modifica-
Started in 1996 as a means to connect schools and libraries
to the Internet, E-rate is the government’s largest educational
technology 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 basic
maintenance of internal connections. The government provides
discounts on these services that range anywhere from 20 per-
cent to 90 percent depending on both the poverty level and
the geography of school districts applying for funding.
In 2014, the FCC overhauled the program through the E-rate
Modernization Orderiii
, bringing sweeping changes, slated to roll
out this year, that will improve administrators’ ability to meet the
demand 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-cutting
ii
https://www.whitehouse.gov/issues/education/k-12/connected
iii
https://www.fcc.gov/general/summary-e-rate-modernization-order

2. tions to the E-rate program that administrators should take care to un-
derstand so they can leverage them in their schools’ best interests. Here
are 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 multiple
bids are not available and it is more cost-effective
• Availability of rural school rates comparable to those offered
to urban districts from telecom companies receiving subsidies
through certain government programs
• Matching E-rate funding of up to 10 percent of state-paid
construction costs to incentivize state spending
• Greater financing flexibility for high up-front costs to enable
schools 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: the
percentage 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 districts
can 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 with
access 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 as
the federal free milk program or Medicaid data. If your school has
a higher participation level in one of these programs than in the
NSLP, you may qualify for greater discounts.
As you consider how to best use E-rate funds, focus first on projects
that will have a demonstrable impact on your district’s bottom line.
That is, although furnishing your classrooms with new computers
may be your end goal, invest first in projects that will save money
through reduced energy consumption or maintenance, such as
voice services or cloud-based Internet connectivity solutions. Use the
money saved to support new projects.
How can you get started?
Thanks to the 2014 E-rate Modernization order, projects can now be
undertaken as early as April, rather than July, of a given fiscal year.
While this means schools will have the added benefit of an entire
summer 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. In
fact, 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 telecom
provider that can customize solutions to meet your school district’s
needs. Work with a partner that can provide the full range of services
available through E-rate funding to take broad advantage of the
benefits of the program.
Budget limitations present real challenges for schools, which can make
supporting your technology needs difficult. Thankfully, many solutions
can be purchased at discounted rates, thanks to E-Rate funding. The
dedicated professionals at Cox Business have an extensive history
working with schools and libraries to customize solutions that align with
E-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.html
v
http://www.universalservice.org/sl/applicants/