MDE Data Conference
July 23rd-27th
Lee Bray, MDE
Gary Rawson, ITS
1.
2.
3.
4.
5.
6.
Technology Plans
Funding
Future
Basic Maintenance
School/District Merging
Open Discussion
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Year 2 Annual Review – Due September 21,
2012
2013 – 2016 Technology Plan – Start planning
now
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Original Funding Cap
Current Funding Cap
Net increase of
$2,250,000,000
$2,338,786,577
$ 88,786,577
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Total Demand FY2012 $5.237 billion (up 21.5%)
Total P1 Demand 2012 $2.444 billion (up 12.5%)
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Total P2 Demand 2012 $1.379 billion (90% only)
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Funding Year
Total Demand
% Change
2012
$5,236,939,650
21.5%
2011
$4,309,942,527
10.1%
2010
$3,915,889,487
-1.8%
2009
$3,986,033,329
-7.5%
2008
$4,307,572,380
16.8%
Funding Year
Total Demand
% Change
2012
$2,444,087,363
12.5%
2011
$2,172,884,435
6.6%
2010
$2,038,141,531
-0.3%
2009
$2,043,431,050
4.5%
2008
$1,954,968,906
9.1%
Funding Year
Total Demand
% Change
2012
$3,822,939,650
20.2%
2011
$3,180,888,705
4.6%
2010
$3,041,558,623
6.7%
2009
$2,851,562,280
-5.6%
2008
$3,021,663,857
20.7%
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BTOP – Broadband Technology Opportunities
Program
$3.5 Billion for Broadband projects
Funding
Year
Funding Requests
Total Demand
Avg. $ per FRN
2012
154
$6,242,661
$40,536
2011
88
$2,731,457
$31,039
2010
10
$330,199
$33,019
What changed? Bundled VoIP Handsets.
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Current Funding Cap
P1 Demand
Remainder for P2
$2,338,786,577
$2,444,087,363
-$ 105,300,786
P2 Demand for 90%
$1,378,852,287
P1 and P2 90% Demand $3,822,939,650
Rollover – April 2012
Rollover – July 2012
Total Rollover
$ 400,000,000
$ 650,000,000
$1,050,000,000
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Current Funding Cap
Total Rollover
$2,338,786,577
$1,050,000,000
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Total Available for 2012 $3,388,786,577
P1 and P2 90% Demand $3,822,939,650
Difference
-$ 434,153,073
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Hopefully, that is close enough.
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As I see it the FCC has 4 options:
1. Do nothing
2. Remove funding from many services that are
currently eligible
3. Alter Discount table
4. Increase the funding cap
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If we have another 12% increase in P1 Demand
for FY 2013 we will need $2,737,377,846
We cannot always count on rollover dollars
1. Why? Where do rollover dollars come from?
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P2 will be a thing of the past (came close this
year, didn’t it)
If we have another 12% increase in P1 Demand in
FY 2014 we will need $3,065,863,187 just for P1
Then what?
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If by FY 2014 we have a demand of $3,065,863,187
with a funding cap of $2,338,786,577, what do you
think is going to happen?
Proration, even for P1 services – to divide,
distribute, or assess proportionately.
 90% first, but will only get whatever percentage the
funds will allow
 For example, a 90% school might only get an 85%
discount, if that is what the funds allow.
 How will you budget for that?
I don’t think we want the FCC to do nothing
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Eliminate P2 entirely (equipment and
maintenance)
Cell phones
Long distance
POTS
Web Hosting
Only pay for network connectivity and
Internet Access services at the school
The program saves $, but someone loses
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No more 90% discounts on any service.
One suggestion was to lower all discounts by
5% across the board
Another suggestion was to lower all
discounts by 10%.
The purpose is to match potential demands
to available funding.
Sounds like proration, doesn’t it.
 How is lowering the discount table different from
proration?
 The program saves $, but someone loses
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Original Funding Cap
Current Funding Cap
Net increase of
$2,250,000,000
$2,338,786,577
$ 88,786,577 (in 15 yrs)
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Equal Demand?
$5.237 billion
 Then applicants below 80% will apply, increasing demand
even more
 Is the program fair in its current form?
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Double Current Amt?
$4,677,573,154
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Where would the funds come from?
Agreements or contracts must state the eligible
components covered, make, model and location
 Basic Maintenance is a recurring service.
 Must be delivered within the July 1st to June 30
timeframe (cannot be extended beyond June
30th)
 Cannot be generic “Maintenance on eligible
equipment”
 Cannot be for a block of hours “100 hours of
maintenance at $75 per hour”
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Unbundled warranties are NOT eligible
 Unbundled warranties allow for broken equipment to
be fixed or if it is beyond repair, replaced
 Unbundled warranties are considered a type of
retainer and not as an actual maintenance service
This does not apply to a manufacturer’s
warranty of no more than three years that is
included in the price of the equipment
 OR
 If the retainer is tied to actual service performed
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Operating system software, such as network operating
system software required to obtain operation of an eligible
component, is eligible, including functionality provided
with the core operating system at no cost. Additional
software products available separately that provide
optional operational features are not eligible for discount.
 E-mail software that is a server-based, shared product is
eligible. If such a software product provides substantial
additional functionality that is not eligible, such as
archiving, database, workflow, or groupware features, only
the e-mail portion of the product is eligible and the cost of
the ineligible portion must be cost allocated.
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The following basic maintenance services are eligible:
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Repair and upkeep of eligible hardware
Wire and cable maintenance
Basic technical support
Configuration changes
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Annual software service agreements are not mentioned as
eligible
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“…software Client Access Licenses are not eligible as Basic
Maintenance. However, Client Access Licenses for eligible
software products may be eligible in the Internal
Connections funding category. “
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Cisco SMARTnet Provides:
 Global 24 hour access to Cisco Technical Assistance Center
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(TAC)
Access to online knowledge base, communities and tools
Hardware replacement options, including 2-hour, 4-hour,
and next business day
Operating system software updates
Smart, proactive diagnostics and real-time alerts on
devices enabled with Smart Call Home
The FCC determined that SMARTnet was an
unbundled warranty and thus ineligible
Offerings historically included in SMARTnet to be divided,
for E-rate customers, into two offerings
 CiscoBase: BMIC services allowable as a one-time charge:
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Software downloads, bug fixes, etc.
TAC access
Web tools
Does not include Advanced Hardware Replacement
Cisco Time & Material process: replacement
parts/physical labor
 Established price points for replacement parts
 Expect Customer to establish relationship with approved E-rate
provider to implement a complete support program
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Transfers From a Closed Location
 Equipment can be transferred to other eligible entities
- even if those entities are at a lower discount level - if
the particular location where the service was
originally received is temporarily or permanently
closed. This includes equipment serving part of a
facility, such as equipment serving individual
classrooms, if that portion of the facility is temporarily
or permanently closed. The transferring entity must
notify USAC of the transfer, and both the transferring
and receiving entities must maintain detailed records
of the transfer and the reason for the transfer for five
years from the date of the transfer.
We just addressed what can be done with
equipment.
 What about the WAN circuits, Internet, Long
Distance, POTS lines, Cell Phones?
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 We have asked for clarification and have not yet
received an official answer.
 Unofficial answer is to upgrade circuit/services and
maintain split billing.
 If two SPs then do a SPIN change and do split
billing.
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You must notify USAC