********************************************************    
                                         NOTICE
    ********************************************************
                                
                This document was converted from
           WordPerfect or Word to ASCII Text format.
                                
   Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
             will not show up in this text version.
                                
All text attributes such as bold, italic, underlining, etc. from the
    original document will not show up in this text version.
                                
        Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
           will not be preserved in the text version.
                                
        If you need the complete document, download the
  WordPerfect version or Adobe Acrobat version, if available.
                                
*****************************************************************
                                                           Before the
               Federal Communications Commission
                     Washington, D.C. 20554



In the Matter of

Request for Review 
of the Decision of
the Universal Service Administrator by

Carl Schurz High School
Chicago, Illinois

Federal-State Joint Board on Universal Service

Changes to the Board of Directors
of the National Exchange Carrier
Association, Inc. 
)
)
)
)
)
)
)
)
)
)
)
)
)
)






File No. SLD-143629


CC Docket No. 96-45

CC Docket No. 97-21



                             ORDER

   Adopted:   January 30, 2001          Released:   January 31, 2001

By the Common Carrier Bureau:

1.     The Bureau has under consideration a Letter of Appeal filed by Carl Schurz High
School (Carl Schurz), Chicago, Illinois, on May 23, 2000, seeking review of a decision issued by
the Schools and Libraries Division (SLD) of the Universal Service Administrative Company
(Administrator).  Carl Schurz seeks review of the SLD's denial of its appeal in which Carl
Schurz sought to amend its discount percentage under the schools and libraries universal service
support mechanism.  For the reasons set forth below, we deny the Letter of Appeal.  
2.     Under the schools and libraries universal service support mechanism, eligible schools,
libraries, and consortia that include eligible schools and libraries, may apply for discounts for
eligible telecommunications services, Internet access, and internal connections.  The universal
service program rules are designed to direct support toward the most economically disadvantaged
schools and libraries.  Under the program's discount matrix, the most economically
disadvantaged schools, as measured by the percentage of students eligible for the national school
lunch program, are eligible for the greatest levels of discount.  In order to receive discounts on
eligible services, schools and libraries are required to provide specific information to the
Administrator.  As part of this process, the applicant must provide information in block 4 of
FCC Form 471 to determine the appropriate discount percentage. 
3.     By letter dated August 17, 1999, SLD granted Carl Schurz's application for discounts
at the 80 percent discount percentage as indicated on its FCC Form 471.  On September 10,
1999, Carl Schurz filed an appeal with SLD indicating that the company responsible for
compiling its application had erroneously calculated its discount percentage in block 4 of FCC
Form 471.  Carl Schurz stated that its application should be amended to reflect a higher discount
rate of 90 percent.  By letter dated April 27, 2000, SLD denied Carl Schurz's appeal indicating
that the funding decision was based on information submitted by Carl Schurz, and that
Commission rules "prohibit the funding of discounts that are greater than what was submitted on
the original 471."  Carl Schurz appeals this decision.
4.     We have reviewed Carl Schurz's appeal and conclude that SLD properly denied its
request to amend the approved discount percentage. The record indicates that SLD reasonably
relied upon the information submitted by Carl Schurz in block 4, item 14 and block 5, item 16 of
its FCC Form 471.  In light of the thousands of applications that SLD must review and process
each year, we find that it is administratively necessary to require an applicant to be responsible
for correctly calculating and reporting its discount percentage in completing the FCC Form 471
upon which its ultimate funding is dependent.  It was Carl Schurz's own error that caused it to
be approved for a smaller discount than that which it may have otherwise been entitled.  In
addition, because demand for support has generally exceeded the availability of funds, it is
important to the administration of the program that applicants provide accurate information
regarding funding requests.  The Administrator must be able to reasonably estimate the total
demand for support submitted by applicants during each filing period in order to make
determinations regarding the availability of funding.  We therefore conclude that SLD correctly
denied Carl Schurz's appeal.
5.     ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under sections
0.91, 0.291, and 54.722(a) of the Commission's rules, 47 C.F.R.  0.91, 0.291, and 54.722(a),
that the Letter of Appeal filed by Carl Schurz High School on May 23, 2000 IS DENIED.

                              FEDERAL COMMUNICATIONS COMMISSION
                              
                              Carol E. Mattey                                                         
                              Deputy Chief, Common Carrier Bureau