Calculating Your Discount
If you are applying for E-rate discounts on eligible services, you must calculate
the percentage discount that schools or libraries are eligible to receive.
Discount calculation instructions follow for each application type:
- School
- School District
- Library (Outlet/Branch)
- Library (System)
- Consortium
Examples of the discount calculation for each application type are shown immediately
following the calculation instructions. The data for these examples were pulled
from the sample data found at the end of this document. You can also find a
copy of the Discount Matrix at the end of this table.
Information about your Urban or Rural classification can be found in the Reference
Area of this web site. If you do not know the Entity Number for a particular
school or library, check the Entity Numbers listed in the Reference Area of
this web site or call the Client Service Bureau at 1-888-203-8100. For information
about how to determine the discount calculation for "New School Construction"
or "New Library Construction" or for "Administrative Entities,"
refer to the Form 471 Instructions. More information on how to calculate your
discount can be found in the Form 471 Instructions for Block 4.
Calculations labeled with an (A) indicate that these calculations will be done
automatically when you file online.
School:
Complete Columns 1 - 7 of Block 4, Worksheet A
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Column 1:
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List the name of the eligible school.
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Column 2:
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List the school’s Entity Number.
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Column 3:
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Determine whether the school is classified as Urban or Rural.
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Column 4:
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List the total number of K-12 students in the school.
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Column 5:
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Provide the number of students eligible for the National School Lunch
Program.
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Column 6:
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Divide Column 5 by Column 4 to arrive at the percentage of students eligible
for the National School Lunch Program. (Discount calculations may be rounded
up only when fully half a discount point is reached.) (A)
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Column 7:
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Using the percentage in Column 6 and the Discount Matrix, determine the
percentage discount to which the school is entitled. Enter that percentage
in Column 7. (A)
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School Example:
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1
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2
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3
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4
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5
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6
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7
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8
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Name of Eligible School
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Entity Number
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Urban or Rural
U or R
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Total # of Students
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# of Students Eligible for NSLP
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% Students Eligible for NSLP
(Col. 5 ÷ Col. 4)
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Discount % from Discount Matrix
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Weighted Product for Calculating Shared Discount
(Col. 4 x Col. 7)
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Polk Elementary School
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XXXXXX
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R
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64
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31
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48.437
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70%
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School District:
Complete Columns 1 - 8 and Item 10c of Block 4, Worksheet A
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Column 1:
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List the name of each eligible school.
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Column 2:
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List each school’s Entity Number.
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Column 3:
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Determine whether each school is classified as Urban or Rural.
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Column 4:
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List the total number of K-12 students in each school.
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Column 5:
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Provide the number of students eligible for the National School Lunch
Program for each school.
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Column 6:
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Divide Column 5 by Column 4 to arrive at the percentage of students eligible
for the National School Lunch Program for each school. (Discount calculations
may be rounded up only when fully half a discount point is reached.) (A)
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Column 7:
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Using the percentage in Column 6 and the Discount Matrix, determine the
percentage discount to which each school is entitled. Enter that percentage
in Column 7. (A)
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Column 8:
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For each school receiving an appropriate share of shared services, multiply
the discount rate for the School (Column 7) by the number of students
in the school (Column 4). (A)
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Column 8, last cell:
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Add together all of the products in Column 8 and enter the total in the
cell at the bottom of this column (A)
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Item 10c:
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Divide the total at the bottom of Column 8 by the total at the bottom
of Column 4. Round the result to the nearest whole number percentage,
and enter it into Item (10c). (A)
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School District Example:
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School District Name: Washington School District
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School District Entity Number: xxxxxx
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1
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2
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3
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4
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5
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6
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7
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8
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Name of Eligible School
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Entity Number
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Urban or Rural U or R
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Total # of Students
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# of Students Eligible for NSLP
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% Students Eligible for NSLP
(Col. 5 ÷ Col. 4)
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Discount % from Discount Matrix
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Weighted Product for Calculating Shared Discount
(Col. 4 x Col. 7)
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Madison Elementary
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xxxxxx
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U
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127
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49
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38.582
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60%
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76.2
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Adams Middle School
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xxxxxx
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U
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195
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67
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34.358
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50%
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97.5
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Washington High School
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xxxxxx
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U
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142
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47
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33.098
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50%
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71
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Totals for calculating Weighted Average Discount
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464
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244.7
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 10c
Weighted Average Discount % for Shared Services
(Col. 8 total divided by Col. 4 total. Round to nearest %)
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53%
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Library (Outlet/Branch):
Complete Columns 1 - 4 of Worksheet B
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Column 1:
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List the name of the eligible library outlet/branch.
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Column 2:
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List the Entity Number for the library outlet/branch.
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Column 3:
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List the name of the public school district in which the library outlet/branch
is located.
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Column 4:
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First, determine whether the library outlet/branch is classified as Urban
or Rural. Then, for the public school district listed in Column 3, calculate
the percentage of students eligible for the National School Lunch Program
(NSLP) as follows:
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a.
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Determine the number of students eligible for NSLP in the school
district.
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b.
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Determine the total number of students in the school district.
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c.
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Divide the number of students eligible for NSLP by the total number
of students to arrive at the percentage of students in the school
district eligible for NSLP. (Discount calculations may be rounded
up only when fully half a discount point is reached.)
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Using the percentage calculated in (c), the urban/rural status of the
library outlet/branch, and the Discount Matrix, determine the percentage
discount to which the library outlet/branch is entitled.
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Library (Outlet/Branch) Example:
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1
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2
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3
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4
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Name of Eligible Library
(outlet/branch)
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Entity Number
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Name of School District
in which outlet/branch in Column 1 is located
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Discount %
from Discount Matrix
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Polk Public Library
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xxxxxx
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Lincoln School District
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80
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Explanation of example:
Polk Public Library is classified as Rural. The library's calculation for Lincoln
School District (the public school district in which Polk Public Library is
located) is performed as follows:
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Total number of students eligible for NSLP:
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31 + 62 = 93
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Total number of students in the school district:
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64 + 92 = 156
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Percentage of students eligible for NSLP:
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93 / 156 = 59.615 %
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Discount Matrix discount for rural location and
NSLP percentage eligibility of 59.615:
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80 %
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Library (System):
Complete Columns 1- 4 and Item 10c of Worksheet B
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Column 1:
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List the name of each eligible library outlet/branch.
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Column 2:
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List the Entity Number for each library outlet/branch.
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Column 3:
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List the name of the public school district in which each library outlet/branch
is located.
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Column 4:
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For each library outlet/branch, use the urban/rural status of the library
outlet/branch, the percentage of students eligible for the National School
Lunch Program in the public school district listed in Column 3, and the
Discount Matrix to determine the percentage discount to which the library
outlet/branch is entitled. (See Library (Outlet/Branch)
example above.)
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Column 4, last cell:
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Add up all of the discounts in this column and enter the total in the
cell at the bottom of Column 4. (A)
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Item 10c:
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Divide the total at the bottom of Column 4 by the total number of library
outlets/branches listed in Column 1. Round the result to the nearest whole
number percentage, and list this number in Item 10c. (A)
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Library (System) Example:
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Library System Name: Washington Library System
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Library System Entity Number: xxxxxx
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1
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2
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4
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5
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Name of Eligible Library
(outlet/branch)
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Entity Number
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Name of School District
in which outlet/branch in Column 1 is located
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Discount %
from Discount Matrix
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Washington Main Library
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xxxxxx
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Washington School District
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60
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Jefferson Branch Library
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xxxxxx
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Washington School District
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60
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Monroe Branch Library
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xxxxxx
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Lincoln School District
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80
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Totals for calculating Shared Discount
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200
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10c
Shared Discount %
(Col. 4 total divided by # of outlets/branches in Col. 1. Round to nearest
%)
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67%
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Consortium:
Complete Columns 1-3 and Item 10c of Block 4, Worksheet C
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Column 1:
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List the name of the eligible member of the consortium.
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Column 2:
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List the Entity Number for each eligible member of the consortium.
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Column 3:
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Provide the correct discount for each eligible member depending on the
type of entity it is.
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Column 3, last cell:
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Add up all of the discounts in this column and enter the total in the
cell at the bottom of this column. (A)
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Item 10c:
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Divide the total at the bottom of Column 3 by the total number of consortium
members listed in Column 1. Round the result to the nearest whole number
percentage, and list this number in Item 10c. (A)
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Consortium Example:
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1
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2
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3
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ELIGIBLE MEMBER ENTITIES
Name of each school, school district and/or library
(i.e. outlet/branch, system) in consortium
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ENTITY NUMBER
For each entity listed
in Column 1
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ENTITY DISCOUNT
School: Discount from Worksheet A, Column 7
School District: Weighted Average Discount from Worksheet A, Item
10c Library (outlet/branch): Discount from Worksheet B, Column
4
Library System: Discount from Worksheet B, Item 10c
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Polk Elementary School
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xxxxxx
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70
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Washington School District
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xxxxxx
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53
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Polk Public Library
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xxxxxx
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80
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Washington Library System
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xxxxxx
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67
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Totals for calculating Shared Discount
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270
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10c
Shared Discount %
(Col. 3 total divided by # of entities in Col. 1. Round to nearest %)
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68%
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Sample Data for Calculating Discounts:
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Entity
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Entity Number
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Location
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Urban or Rural (U/R)
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Total # of Students
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# of Students Eligible for NSLP
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Washington School District
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xxxxxx
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Madison Elementary
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xxxxxx
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U
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127
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49
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Adams Middle School
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xxxxxx
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U
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195
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67
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Washington High School
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xxxxxx
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U
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142
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47
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Lincoln School District
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xxxxxx
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Polk Elementary School
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xxxxxx
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R
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64
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31
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Lincoln Junior/Senior High School
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xxxxxx
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R
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92
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62
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Polk Public Library
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xxxxxx
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Lincoln School District
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R
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Washington Library System
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xxxxxx
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Washington Main Library
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xxxxxx
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Washington School District
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U
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Jefferson Branch Library
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xxxxxx
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Washington School District
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U
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Monroe Branch Library
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xxxxxx
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Lincoln School District
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R
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Discount Matrix:
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INCOME
Measured by % of students eligible for the National School Lunch
Program
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URBAN LOCATION
Discount
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RURAL LOCATION
Discount
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If the % of students in your school that qualifies for the National School
Lunch Program is...
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…and you are in an URBAN area, your discount will be...
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…and you are in a RURAL area, your discount will be...
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Less than 1%
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20%
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25%
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1% to 19%
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40%
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50%
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20% to 34%
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50%
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60%
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35% to 49%
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60%
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70%
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50% to 74%
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80%
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80%
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75% to 100%
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90%
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90%
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Content Last Modified: November 27, 2002
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