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                                                           Before the
               Federal Communications Commission
                     Washington, D.C. 20554



In the Matter of

Request for Review of the Decision of the
Universal Service Administrative Company
by

Soille San Diego Hebrew Day School
San Diego, California

Federal-State Joint Board on
Universal Service

Changes to the Board of Directors of the
National Exchange Carrier Association, Inc.
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File No. SLD-149993


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.     In this Order, we deny a Letter of Appeal filed by the Soille San Diego Hebrew Day
School, San Diego, California (Soille) on June 9, 2000, seeking review of a funding
commitment decision issued by the Schools and Libraries Division (SLD) of the Universal
Service Administrative Company (Administrator) pursuant to a funding request for internal
connections.
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.  In accordance
with the Commission's rules, the discount available to a particular school is determined by
indicators of poverty and high cost.  For purposes of determining the appropriate discount, the
Commission's rules provide that the level of poverty for schools and school districts is 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.   A
school's high cost status is derived from rules that classify it as urban or rural.  The rules provide
a matrix reflecting both a school's urban or rural status and the percentage of its students eligible
for the school lunch program to establish a school's discount rate, ranging from 20 percent to 90
percent, to be applied to eligible services.
3.     In its Funding Year 2 application for discounted internal connections, Soille stated that
156 out of 230 students were eligible for the national school lunch program.  As such, Soille stated
that it was eligible for an 80 percent discount for internal connections.  In its Funding Commitment
Decision Letter, SLD stated that only 72 of Soille's students were eligible for the national school
lunch program, and, therefore, Soille was eligible for a 50 percent discount for internal
connections.  SLD relied on a list of students provided by Soille showing each student's family
income and household size to determine that 72 students were eligible for free and reduced lunch
under the federal income eligibility guidelines.  Likewise, the Administrator's Decision on
Appeal stated that documentation provided by Soille showed that only 72 students were eligible for
free and reduced lunch under the federal income eligibility guidelines.  
4.     In the instant appeal, Soille reiterates its original claim that 156 of its students were
eligible for the national school lunch program.  Relying on a "ruling of the Assistant Secretary of
Education," Soille argues that the granting of a scholarship by a school will qualify a student for
free or reduced lunches.  As discussed above, the United States Department of Agriculture's
income eligibility guidelines used in determining eligibility for free and reduced lunches are based
on federal income poverty guidelines, not on whether a student receives scholarship money from
his or her respective school.  Upon review of the all the evidence presented, including supporting
documentation provided by Soille, we conclude that the SLD correctly determined that only 72 of
Soille's students were eligible for the national school lunch program under the federal income
eligibility guidelines.  Thus, SLD properly found Soille eligible for a 50 percent discount for
internal connections, and we find no merit in Solle'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 on June 9, 2000 by Soille San Diego Hebrew Day School, San
Diego, California, IS DENIED.
                              FEDERAL COMMUNICATIONS COMMISSION




                              Carol E. Mattey
                              Deputy Chief, Common Carrier Bureau