[August 24, 2009] The Universal Service Administrative Company which administers schools and libraries universal service (also known as E-rate program) projected that the unused funds accumulated over the years will reach $1 billion this year.  On July 31, 2009, the Federal Communication Commission announced to carry forward $900 million in unused E-rate funds for funding year 2009 while the remaining $100 million is held in reserve for funding year 2010.

What does this mean to libraries?  For libraries that have applied for funding year 2009 E-rate disbursement, the prospect of getting their request approved is much higher than in the past.  For libraries that are eligible, they should take advantage of the additional $100 million in the fund, plan accordingly and apply for funding year 2010 E-rate refund.

E-rate program provides assistance to services of the following categories:

1. Telecommunications Services
2. Internet Access
3. Internal Connections
4. Basic Maintenance of Internal Connections

The first two categories fall into the priority one service.  Priority one service request is usually granted as long as the application meets all criteria and conditions.  The 3rd and the 4th categories are in the priority two service.  Priority two service request is funded base on the poverty level of the community and the amount of fund available.

Funding year 2010 covers projects or services starting July 1 2010 through June 30 2011.  You have up to December 2009 to submit the E-rate application for funding year 2010 programs.  With the additional $100 million fund in the pool, it opens up opportunities for many priority two services that would not have been funded otherwise. Contact Chaichin Chen about the E-rate process and to find out if your library is eligible to receive E-rate discount.