FEDERAL COMMUNICATIONS COMMISSION January 3, 2013 JULIUS GENACHOWSKI CHAIRMAN Th.e jionorable Allen West . V,S. House of Representatives 1708Longworth House Office Building WaShington, D.C. 20515 Dear Congressman West: Thank you for your letter regarding the School District of Palm Beach County's application for 2012-2013 E-rate funding. I appreciate your interest in this matter and am pleased to provide the enclosed letter on this issue from the Chief of the Wireline Competition Bureau's Telecommunications Access Policy Division. If you have any additional questions or need any further assistance, please do not hesitate to contact me. Enclosure 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-416-1000 Federal Communications Commission Washington, D.C. 20554 January 3, 2013 The Honorable Allen West U.S. HOllse of Representatives 1708 Longworth House Office Building Washington, DC 20515 Dear Congressman West: Thank you lor your letter on behalfofthe School District of Palm Beach County and other recipients of funding under the schools and libraries universal service support mechanism, commonly referred to as the E-rate program. Specifically, you ask that we consider certain points as guidelines, including the distribution of "priority 2" funding for internal connections, as we determine how best to allocate E-rate funding. Under the E-rate program, funds are allocated according to rules of priority, with I'lrsl prJurlty' pruvllkd to rl:qucsts I'or ll.:kcornrnUllicatiolls services and Inlernet access lpnorlly onc scrvlces). fhe remallllllg available lunds arc allocatcd to requests tor support tor internal connections and basic maintenance of internal connections (priority two services). Requests tor priority two services are allocated first to applicants whose applications are eligible for 90 percent discount levels, then to those eligible for 89 percent discount levels, and so on, until the available funds are exhausted. If the remaining funds are not sufficient to support all of the funding requests within a particular discount level, the Commission's rules provide that the total amount of rcmaining funds must be divided by the amount of funding requests within the particular discount level to produce a pro-rata factor. The support level for each applicant is thcn reduced" Ilhlll thaI discount level based on Ihe pro-rata 1~IClOr. The Comillissiou's rules also require that, in the second quarter of each calendar year, allunuscd funds from prior years must be available Jar use in the next full funding year of the E-rate program. As technology evolves and the demand for funding increases, the Commission has continually sought comment on ways in which we can improve and reform the E-rate program. We will take your comments into consideration as we strive to balance the goal of providing the important benefits of the E-rate program to all eligible schools and Page 2 - The Honorable Allen West libraries with the need to protect the integrity of the program and investigate potential waste, fraud and abuse. Thank you for your support of the E-rate program. Sincerely, ? .:t-- 8 [ ~'--_ Trent B. Harkrader Chief Teiccollllllunications Acccss Policy Division Wireline Competition Bureau