Broadband funding and ARRA

After several mentions by school districts and by our leadership on today's webcast, I've decided to take a few minutes to sift through the details of a $7.2B program that is part of the American Recovery and Reinvestment Act (ARRA).

The biggest question I get from school districts is "can I apply" or "how can this money help me". Maybe we'll get to the bottom of this as I hit some highlights:

Of the $7.2B, $2.5B is related to RUS and BIP and $4.7B is related to NTIA and BTOP. Now, let's dissect the alphabet soup - RUS is the Rural Utilities Service, BIP is the Broadband Initiatives Program, NTIA is the National Telecommunications and Information Administration and BTOP is the Broadband Technology Opportunities Program. Clear as mud? Well, it's a bit easier to think of these acronyms in pairs. RUS and BIP go together, as do NTIA and BTOP.

The document with all of the details is the formal notice of funds availability. Any info below will come from this document...

RUS and BIP - To quote from this document directly

The Recovery Act appropriates $2.5 billion of budget authority for RUS to extend loans, loan/ grant combinations, and grants to projects where at least 75 percent of an RUS-funded area is in a rural area that lacks sufficient access to high speed broadband service to facilitate rural economic development. RUS has developed BIP to fund broadband infrastructure in qualifying areas.

This might explain why our state webcast today discussed working with qualifying entities. These funds are targeted at entities to build out the infrastructure. Obviously, school districts could take advantage of this. It's probably in more of an indirect fashion than some have visualized.

NTIA and BTOP - Again, quoting the funds availability document

The Recovery Act also appropriates $4.7 billion to NTIA to provide grants for broadband initiatives throughout the United States, including unserved and underserved areas.12 NTIA is tasked to spur job creation, stimulate long-term economic growth and opportunity, and narrow gaps in broadband deployment and adoption. The NTIA program is titled BTOP. Consistent with its appropriation, BTOP is divided into three categories of projects: Broadband Infrastructure, Public Computer Centers, and Sustainable Broadband Adoption.

This seems a bit more interesting, but we need to know more about the categories of BTOP and any other qualifiers. One of BTOP's stated objectives is of particular interest to school districts:

To provide broadband access, education, awareness, training, equipment, and support to community anchor institutions (e.g., schools, libraries, medical facilities), or organizations and agencies serving vulnerable populations (e.g., low-income, unemployed, aged), or job-creating strategic facilities located in state- or federally designated economic development areas

This is where, again, school districts are encouraged to work with providers to make them aware of their need of being connected. Without making this blog entry much longer, other facts in the funds document about BTOP are (1) all applicants must propose to offer broadband service, (2) awardees under BTOP must provide matching funds of at least 20 percent of the total project cost and (3) grant recipients are expected to present projects that will sustain long-term growth and viability.

Suffice to say that these applications appear to be geared toward service providers, though our school districts need to be aware of the opportunity that this may present by touching base with local providers to discuss your needs, etc.

Title IID, EETT, ARRA, etc.

I'm sure I've posted about this in the past, but I thought I'd take a fresh look at what's being stated regarding EETT (Title II Part D) funding for Kentucky, particularly as it relates to ARRA (or 'stimulus') funding. I have no inside knowledge of any relevance and I'm simply going to use Kentucky's state table posted on the USDOE web site (KY is page 43) for my analysis:

First, note that the FY2008 actual figure is $3,886,884. There's a certain small amount held back at the state level for administrative purposes, but let's assume that this is the grand total. This is the amount that Kentucky divides into a 50% formula-based distribution, with the other 50% being distributed via competitive grant application.

When looking at the "Recovery Act Estimate" column, I see a value of $9,899,923. That's a 254.7% increase of the actual FY2008 amounts and this is exactly why I tell school district to expect a one-time Title IID amount of roughly 2.5 times their FY2008 allocation. Again, I'll stress that I have no official information that states this - it simply makes sense based on the federal estimates. It's fair to assume that there will be roughly half of that larger amount distributed via competitive grant. With 250% of the funds available, we would certainly hope that more districts would be awarded and the awarded amounts would be larger than before.

Looking ahead to the "FY2009 Estimate", I see $4,029,567. This is similar to the FY2008 actual amount. Accordingly, my advice to districts is to expect a 'traditional' FY2009 amount similar to the FY2008 figure in addition to the one-time ARRA fund injection. For the short term, this is a wonderful development!

Lastly, pay attention to the "FY2010 Estimate". The figure is $1,501,732! I hadn't noticed this before and this is strictly an estimate at this time, but I think it's important to point out that current documentation suggests a significant drop-off in Title II Part D funding after the coming stimulus funding and FY2009 allocation. A 62.7% decrease from FY2009 to FY2010 is worth pointing out as you consider long-term plans for Title II Part D funding (or lack thereof).