Goto Section: 54.504 | 54.506 | Table of Contents
Revised as of December 4, 2012
Goto Year:2011 |
§ 54.505 Discounts.
(a) Discount mechanism. Discounts for eligible schools and libraries
shall be set as a percentage discount from the pre-discount price.
(b) Discount percentages. The discounts available to eligible schools
and libraries shall range from 20 percent to 90 percent of the
pre-discount price for all eligible services provided by eligible
providers, as defined in this subpart. The discounts available to a
particular school, library, or consortium of only such entities shall
be determined by indicators of poverty and high cost.
(1) For schools and school districts, the level of poverty shall be
measured by the percentage of their student enrollment that is eligible
for a free or reduced price lunch under the national school lunch
program or a federally-approved alternative mechanism. School districts
applying for eligible services on behalf of their individual schools
may calculate the district-wide percentage of eligible students using a
weighted average. For example, a school district would divide the total
number of students in the district eligible for the national school
lunch program by the total number of students in the district to
compute the district-wide percentage of eligible students.
Alternatively, the district could apply on behalf of individual schools
and use the respective percentage discounts for which the individual
schools are eligible.
(2) For libraries and library consortia, the level of poverty shall be
based on the percentage of the student enrollment that is eligible for
a free or reduced price lunch under the national school lunch program
or a federally-approved alternative mechanism in the public school
district in which they are located. If the library is not in a school
district then its level of poverty shall be based on an average of the
percentage of students eligible for the national school lunch program
in each of the school districts that children living in the library's
location attend. Library systems applying for discounted services on
behalf of their individual branches shall calculate the system-wide
percentage of eligible families using an unweighted average based on
the percentage of the student enrollment that is eligible for a free or
reduced price lunch under the national school lunch program in the
public school district in which they are located for each of their
branches or facilities.
(3) The Administrator shall classify schools and libraries as “urban”
or “rural” based on location in an urban or rural area, according to
the following desigantions.
(i) Schools and libraries located in metropolitan counties, as measured
by the Office of Management and Budget's Metropolitan Statistical Area
method, shall be designated as urban, except for those schools and
libraries located within metropolitan counties identified by census
block or tract in the Goldsmith Modification.
(ii) Schools and libraries located in non-metropolitan counties, as
measured by the Office of Management and Budget's Metropolitan
Statistical Area method, shall be designated as rural. Schools and
libraries located in rural areas within metropolitan counties
identified by census block or tract in the Goldsmith Modification shall
also be designated as rural.
(4) School districts, library systems, or other billed entities shall
calculate discounts on supported services described in § 54.502(b) that
are shared by two or more of their schools, libraries, or consortia
members by calculating an average based on the applicable discounts of
all member schools and libraries. School districts, library systems, or
other billed entities shall ensure that, for each year in which an
eligible school or library is included for purposes of calculating the
aggregate discount rate, that eligible school or library shall receive
a proportionate share of the shared services for which support is
sought. For schools, the average discount shall be a weighted average
of the applicable discount of all schools sharing a portion of the
shared services, with the weighting based on the number of students in
each school. For libraries, the average discount shall be a simple
average of the applicable discounts to which the libraries sharing a
portion of the shared services are entitled.
(c) Matrix. The Administrator shall use the following matrix to set a
discount rate to be applied to eligible interstate services purchased
by eligible schools, school districts, libraries, or library consortia
based on the institution's level of poverty and location in an “urban”
or “rural” area.
Schools and Libraries discount matrix Discount level
How disadvantaged? Urban discount Rural discount
% of students eligible for national school lunch program
<1 20 25
1-19 40 50
20-34 50 60
35-49 60 70
50-74 80 80
75-100 90 90
(e) Interstate and intrastate services . Federal universal service
support for schools and libraries shall be provided for both interstate
and intrastate services.
(1) Federal universal service support under this subpart for eligible
schools and libraries in a state is contingent upon the establishment
of intrastate discounts no less than the discounts applicable for
(2) A state may, however, secure a temporary waiver of this latter
requirement based on unusually compelling conditions.
(f) State support. Federal universal service discounts shall be based
on the price of a service prior to the application of any state
provided support for schools or libraries.
[ 62 FR 32948 , June 17, 1997, as amended at 62 FR 41304 , Aug. 1, 1997;
63 FR 2130 , Jan. 13, 1998; 63 FR 70572 , Dec. 21, 1998; 75 FR 75414 ,
Dec. 3, 2010]
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Goto Section: 54.504 | 54.506
Goto Year: 2011 |
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