PUBLIC NOTICE Federal Communications Commission 445 12th St., S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 TTY 202 / 418-2555 Internet: http://www.fcc.gov ftp.fcc.gov DA 11-1345 Released: August 5, 2011 WIRELINE COMPETITION BUREAU ANNOUNCES E-RATE INFLATION-BASED CAP FOR FUNDING YEAR 2011 CC Docket No. 02-6 Pursuant to section 54.507(a) of the Commission’s rules,1 the Wireline Competition Bureau announces that the E-rate program funding cap for funding year 2011 is $2,290,682,250.2 Section 54.507(a)(1) of the Commission’s rules requires an adjustment of the E-rate program’s annual cap based on the gross domestic product chain-type price index (GPD-CPI) measure of inflation.3 The new cap represents a 0.9% inflation-adjusted increase from funding year 2010’s $2,270,250,000 cap.4 The Commission began indexing the annual funding cap to inflation in 2010 to allow the E-rate program to keep pace with the changing telecommunications needs of schools and libraries.5 For further information, please contact James Bachtell, Wireline Competition Bureau at (202) 418-7400 or TTY (202) 418-0484. - FCC - 1 47 C.F.R. § 54.507(a) (2011). 2 The 2011 funding year runs from July 1, 2011 to June 30, 2012. The E-rate program is more formally known as the schools and libraries universal service support program. 3 Schools And Libraries Universal Service Support Mechanism: A National Broadband Plan For Our Future, CC Docket No. 02-6, GN Docket No. 09-51, Order, 25 FCC Rcd 18762, 18782, para. 39 (2010) (Sixth Report and Order). 4 Id. at 18781, 18783, paras. 36, 40; National Income and Product Accounts Table, Bureau of Economic Analysis, May 2011, Table 1.1.4, available at http://www.bea.gov/National/nipaweb/TableView.asp?SelectedTable=4&Freq=Qtr&FirstYear=2007&LastYear=20 10 (last visited Aug. 4, 2011) (calculating the percentage difference of the gross domestic product of 109.618 in 2009 and 110.668 in 2010 and producing an increase of 0.9%). 5 Sixth Report and Order, 25 FCC Rcd at 18781, para. 36.