FCC Makes Permanent 5-Year Budget E-rate Category 2 in 5-0 Order With Concurrences

Geoffrey Starks concurring, as expected (see 1912020046). The order replaces a two-in-five-year budget approach deemed problematic by commenters. Funding floors for small and rural anchor institutions will be increased to $25,000. The new rules take effect in the 2021 funding year, when all E-rate applicants will begin new fixed five-year budget cycles. It extends the five-year pilot through the 2020 funding year. The agency declined to add services to its eligible services list. Commissioner Mike O'Rielly said that while he "would have been open to a much more fundamental review of our E-rate budgetary framework" and he disfavors the use of fundamentally flawed expenditure formula, he voted yes to offer applicants "stability and predictability in seeking funds for internal connections." He added he wants to discuss including network security in a future list of eligible services, but doesn't want to open discussions to "vast new laundry lists of permissable expenditures." Rosenworcel is concerned urban libraries will see funding levels cut. "The agency takes steps to strengthen the program by cementing in place essential E.Rate 2.0 reforms" like allowing school districts or library systems as a whole to seek money, she wrote. "I am concerned that the record before us supports a greater per pupil allowance than what is adopted." Commissioner Geoffrey Starks sees "work to do. Five years ago, the Commission established a goal of 1 Mbps internet access per student. Unfortunately, 62 percent of school districts still do not meet that standard."