May 1999 Announcements

Please click on the topic below to view the most recent announcements:

Today, the Federal Communications Commission (FCC) set the fund level of the E-rate at $2.25 billion, the annual cap for the fund, for Year 2 which begins on July 1, 1999 and ends on June 30, 2000. In April, the Schools and Libraries Division reported to the FCC that the estimated demand for discounts from Year 2 applications was $2.435 billion. Based on the SLD statistically valid sample, approximately $931 million was requested for "priority one" services, and $1.503 billion for "priority two" services.

By setting the fund at $2.25 billion, the FCC sought to fund all "priority one" requests, those for telecommunications services and Internet access and sought to fund internal connection requests, or "priority two" requests, at least at the level that was available in Year 1. The FCC recognized, however, that even by setting the funding level at the cap some requests from school and library applicants would likely not be fully met.

After the FCC's Order is publicly released, the SLD will announce its schedule for issuing Funding Commitment Decision Letters. The SLD will be issuing funding letters in waves on a weekly basis.

The Schools and Libraries Division is pleased to offer this progress report on the Year 1 appeals process—including follow-up instructions regarding the Form 486, plus special guidance for those whose 1998 applications are now confirmed missing.

Most Appeals Now Resolved – Funding Letters Forthcoming

Approximately 1,500 applicants who received 1998 funding commitment decisions appealed those decisions, and all but a handful of these appeals have now been reviewed. Appellants first receive a letter titled "Administrator’s Decision on Appeal," the last of which are going into the mail this week. Soon to follow for all those whose appeals have been granted will be a special funding commitment letter providing the exact dollar value of their successful appeal. We will post a notice on the SLD Web Site when the funding commitment letters are ready to be mailed.

When to File Form 486 -- and When NOT To

Even if you receive a favorable decision on your appeal, you must wait for your special funding commitment letter before attempting to file a Form 486 or BEAR form for any newly approved discounts that may flow on the basis of your appeal. Until you receive that funding commitment letter, our data system will show your original commitment amount for the Funding Request Number in question, so your Form 486 may be rejected if it is for an FRN that was originally denied or funded at a lower level. However, you may feel free to file Form 486 or a BEAR for any funds we committed to you in your original Funding Commitment Decision Letter prior to your appeal.

If Your 1998 Application Is Confirmed Missing

Following the last wave of regular 1998 Funding Commitment Decisions Letters, we posted guidance for those filed a 1998 Form 471 application within the window but did not get a response from us at all. Such applicants were urged to call our help line to initiate a search for their missing applications, and a number of you took us up on this offer of assistance. While we presume that we have now heard from all such individuals, we have now established a final deadline for wrapping up these cases. We invite all those who believe their in-the-window 1998 applications have been misplaced (including those who may be awaiting final word from our help line staff) to notify us with a written appeal as soon as possible. Your appeal package should include:

• A copy of your 1998 Form 471 as originally submitted.

• Copies of any documentation verifying that the application was received by us before midnight on April 15, 1998—for example, a postal or express delivery receipt or subsequent correspondence from us.

• A letter BRIEFLY summarizing the events surrounding submission of your application, including any recent contact with us.

Please send your appeal package (via certified mail or express delivery) so it is received by us no later than June 5, 1999 at the following address: Appeals/SLD, Box 125—Correspondence Unit, 100 South Jefferson Road, Whippany, NJ 07981.

Appeals Still Pending

Two additional categories of appeals are still awaiting final action, which we hope will be under way very soon. These categories are:

• Appeals involving pre-commitment rejections and open policy issues. A very small number of such appeals are awaiting final review and policy decisions, and will be expedited as soon as possible.

• Requests for waivers of the 1998 or 1999 Form 471 application window deadline. The FCC is currently resolving issues related to authorizing waivers of the window deadline. These requests will be reviewed once these issues are resolved.

If You Disagree with an Appeal Decision

Once you receive our decision on your appeal, you have a right to appeal that decision to the FCC within 30 days of issuance. For complete instructions on filing an appeal with the FCC, go to http://www.sl.universalservice.org/reference/appeals.asp on our Web Site, or call 800-959-0733 and key in document #511.