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<h3><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#000099;font-weight:normal">From the E-Rate Central weekly newsletter:<o:p></o:p></span></h3>
<h3><i><span style="font-size:9.0pt;color:#000099;font-weight:normal">Category Two Budget Tool Update:<o:p></o:p></span></i></h3>
<p><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">E-Rate Central staff noticed something interesting in the Category Two Budgets this past week. USAC’s EPC Category Budget Tool was reporting budgets that did not align with $150/student
for schools or $2.30/$5.00 per square foot for libraries. For example, the school shown below, with 727 students based on prior year calculations of $150/student, would have a C2 budget amount of $109,050. USAC’s tool, however, is reporting a C2 budget of
$110,140.50.<o:p></o:p></span></p>
<p><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066"><img width="521" height="114" style="width:5.425in;height:1.1916in" id="_x0000_i1025" src="cid:image001.jpg@01D29C9B.0F74EA30" alt="x"><o:p></o:p></span></p>
<p><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">After inquiring with USAC and doing some additional research, it was determined that USAC is now applying a 1% inflation factor to budget calculations. As per the
<a href="http://e-ratecentral.cmail19.com/t/y-l-htltttd-tldlduutki-d/" target="_blank">
<span style="color:#0033FF">2nd E-rate Modernization Order</span></a>:<o:p></o:p></span></p>
<p><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">97.
<em><span style="font-family:"Verdana",sans-serif">Category Two Costs.</span></em> We find that the $1 billion annual target budget set for category two services in the
<em><span style="font-family:"Verdana",sans-serif">E-rate Modernization Order</span></em> is sufficient to provide the E-rate support needed for a five-year deployment of LANs and WLANs. In July, we stated that the question of available funds for these five-year
budgets was closely linked with the long-term funding for the E-rate program.238 We therefore applied the five-year budgets to applicants that received E-rate support for category two services in funding years 2015 and/or 2016, pending resolution of the program’s
overall funding needs. Having now extended these category two applicant budgets for all applicants for three additional funding years, we reaffirm the funding level for the E-rate support for category two budgets, based on the analysis set out in the
<em><span style="font-family:"Verdana",sans-serif">E-rate Modernization Order</span></em>.239 We also index the category two budget target and the applicant budgets to inflation.<o:p></o:p></span></p>
<p><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">The calculations are as follows for the example above:<o:p></o:p></span></p>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">Funding Year<o:p></o:p></span></p>
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<td valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">Students<o:p></o:p></span></p>
</td>
<td valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">Base Per Student<br>
Category 2 Budget<o:p></o:p></span></p>
</td>
<td valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">Inflation Factor<o:p></o:p></span></p>
</td>
<td valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">Post-Inflation Adjustment Per Student<br>
Category 2 Budget<o:p></o:p></span></p>
</td>
<td valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">Total<br>
Category 2 Budget<o:p></o:p></span></p>
</td>
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<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">2015<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">727<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$150
<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066"> N/A<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$150.00
<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$109,050.00
<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">2016<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">727<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$150
<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">N/A<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$150.00
<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$109,050.00
<o:p></o:p></span></p>
</td>
</tr>
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<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">2017<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">727<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$150
<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">1%<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$151.50
<o:p></o:p></span></p>
</td>
<td nowrap="" valign="bottom" style="padding:2.4pt 2.4pt 2.4pt 2.4pt">
<p class="MsoNormal" align="right" style="text-align:right"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">$110,140.50
<o:p></o:p></span></p>
</td>
</tr>
</tbody>
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<p><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#000066">The inflation factor applies to both school and library budgets. Thus, the new effective Category Two budget is: $151.50/student for schools, $2.32/ sq. ft. or $5.05/ sq. ft. for
libraries, and a Category Two budget floor of $9,292.00.<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#44546A">Sonya Schryer Norris<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A">Library of Michigan<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A">702 W. Kalamazoo St.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A">PO Box 30009<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A">Lansing, MI 48909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A">517-373-4457<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A"><a href="http://www.michigan.gov/libraryofmichigan"><span style="color:#0563C1">http://www.michigan.gov/libraryofmichigan</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A"><a href="http://www.mel.org/"><span style="color:#0563C1">http://www.mel.org</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A"><a href="http://www.michlibrary.org/"><span style="color:#0563C1">http://www.michlibrary.org</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#44546A"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">Your Voice Matters!
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:black">The Public Comment period for Michigan’s Every Student Succeeds Act (ESSA) Draft Plan is open until March 16. Provide your input NOW at
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