Updated September 2015
Discounts are calculated and reported to USAC in the "Discount Calculation" section of the FCC Form 471. You will update the entity information in your organization's EPC account, and the system will populate the appropriate data in your FCC Form 471 and perform the calculations detailed below.
Following is information on how to calculate discounts for different types of entities.
In general, the school district calculation is the basis for discount calculations for all types of entities. To calculate the discount for a school district:
Voice services are subject to a phase down of 20 percentage points per year starting with Funding Year (FY) 2015. For example, a school district that is eligible for an 80 percent discount for Category One services will be eligible for a 60 percent discount on voice services for FY2015 and a 40 percent discount on voice services for FY2016.
Each school and each eligible non-instructional facility (NIF) shares the school district discount. If only one school in the district receives a service, or that service is shared among all or a subset of schools in the district, the discount does not change.
An individual school that is part of a school district does not calculate its discount based on its own student population.
An independent school – a school that does not share a common board with other schools and is individually responsible for its finances and administration – would follow the school district calculation method above, using its student population numbers and the urban or rural status of its physical location.
To calculate the discount for a library system:
Voice services are subject to a phase down of 20 percentage points per year starting with FY2015. For example, a library system that is eligible for an 80 percent discount for Category One services will be eligible for a 60 percent discount on voice services for FY2015 and a 40 percent discount on voice services for FY2016.
Each library outlet/branch and each eligible library NIF shares the library system discount. If only one library outlet/branch in the library system receives a service, or that service is shared among all or a subset of library outlets/branches in the library system, the discount does not change.
To calculate the discount for a consortium or statewide application:
Keep the following in mind:
A non-instructional facility (NIF) is a school building without classrooms or a library building without public areas. A school NIF that does contain classrooms is still treated as a NIF. When eligible for support, school NIFs receive the same discount as the school district and library NIFs receive the same discount as the library system.
The discount for a NIF is derived from the school district or library system regardless of the physical location of the building. NIFs are not counted in the district or system’s urban/rural determination.
You must first determine whether you know the population of students that will attend the school. If you know which students will attend the new school, calculate the discount for that individual school as described above. Schools and school districts can provide a reasonable estimate of the number of students who will be attending a school under construction during a particular funding year and seek support for the estimated number of students who will be attending. Once the student population is known, you may update the discount calculation based on the actual student population during Program Integrity Assurance (PIA) review. In order for your discount calculation to be updated with the actual student population, you must notify PIA before your funding commitment decision notification is issued.
For a new library, calculate the discount as described above under library outlet or branch using the student information from the public school district in which the main branch of the library is (or will be) located.
You must first determine if the students and/or facilities in these programs are eligible in your state using the Eligibility Table for Non-Traditional Education. If they are eligible, calculate the discount for an individual school (or a NIF with classrooms as appropriate) as described above. All Head Start students that meet the age requirement are considered eligible for NSLP.
Some schools offer instruction to students drawn from other schools, and the student population in those schools may vary throughout a school year. Examples of these types of schools include some magnet schools, vocational schools, outdoor education facilities, and career centers.
To calculate their discounts, individual schools with changing student populations that are part of a school district use the district’s discount rate.
For schools that either do not participate in NSLP or choose not to use NSLP participation numbers, there are certain acceptable alternative discount mechanisms that can be used to calculate an equivalent measure for the percentage of students eligible for NSLP. In all cases, these mechanisms must be based on or not exceed the same measure of poverty used by NSLP.
As above, applicants using an alternative discount mechanism must maintain accurate and complete documentation of the calculations that support their funding requests. Remember that documentation must be retained for at least ten years after the last date to receive service.