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Rural Utilities Service

Rural Utilities Service. Distance Learning and Telemedicine. Rural Development Rural Utilities Service 1400 Independence Ave. Washington, DC 20250 www.rurdev.usda.gov/rus/. Harry M. Hutson GFR Telecommunications. 2002 Distance Learning and Telemedicine Program. DLT Goals.

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Rural Utilities Service

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  1. Rural Utilities Service Distance Learning and Telemedicine Rural Development Rural Utilities Service 1400 Independence Ave. Washington, DC 20250 www.rurdev.usda.gov/rus/ Harry M. Hutson GFR Telecommunications

  2. 2002 Distance Learning and Telemedicine Program

  3. DLT Goals • Meet the Educational and Health Care requirements of rural America • Provide financial assistance to enhance learning and health care opportunities for rural residents • Make modern telecommunications technology affordable and available to rural residents

  4. DLT Policies • RUS does not mandate technology • “Technology is a means, not an end” • Use of existing infrastructure when appropriate • Non-duplication of facilities providing adequate service • Collaboration is the key to success • Intended to work “hand-in-hand” with other Programs (E-rate, NTIA, Dept. of Ed., etc.)

  5. Successful Concepts for DLT projects • Dynamic technology versus passive technology • Networking characteristics versus single entities • Cost effectiveness of technology • Solutions for a specific need • Utilization and long-term sustainability

  6. Eligibility for Funding • All entities must operate an educational or medical facility • Public or private, profit or non-profit • Consortium or partnership • Indian Tribe • Project must meet minimum Rurality Requirement • Project must be sustainable for at least 10 years • RUS-financed Telcos are eligible for Loans Only • IHS funded (medical) end user sites operated by the IHS are Ineligible.

  7. DLT Financial Assistance • 100% Grant • Combination Loan and Grant • 100% Loan

  8. 100% Grant Financing • Competitive • $500,000 Maximum • $26.0 million available FY 2002 (Tentative) • 15% Matching Fund requirement • Targets end-user equipment • Submittal Oct. ??, 2001 • Deadline March ??, 2002

  9. Eligible Grant Purposes • Eligible Equipment • Instructional Programming • Technical Assistance and Instruction • limited to 10% of the Grant

  10. Minimum Matching Fund Requirement • 15% of eligible total project costs • Cash or in-kind items for eligible Grant purposes • Federal Funds excluded in this calculation

  11. Criteria for Scoring Grant Applications • The need for services and benefits derived from services • The comparative rurality of the project service area • The economic need of the applicant’s service area as estimated by the NSLP or other supplemental objective criteria

  12. Criteria for Scoring Grant Applications (cont.) • The ability of the applicant to leverage resources • Innovativeness of the project • The cost effectiveness of the system • Project participation in EZ/EC (Empowerment Zone and Enterprise Communities) and Champion Communities.

  13. Combination and 100% Loan Financing • First come, first served • Combos - $77 million (2001 Levels) • $7 million Grant • $70 million Loan • 100% Loans • $300 million • $10 million Maximum for Loans

  14. Combination and 100% Loan Financing Schedule • Loan purposes expand on Grant purposes • No Matching Fund requirement • Local filing and processing with RD State Offices in addition to RUS Applications can be submitted ANYTIME!

  15. Eligible Combination Purposes • All Grant Purposes • Medical or Educational equipment and facilities • Links between teachers and students or medical professionals located in the same facility • Site development and alteration of buildings • Land, buildings, or building construction

  16. Eligible Loan Purposes • All Combo Purposes • Acquiring telecommunications transmission facilities • Eligible recurring or operating expenses incurred during the first 2 years of operation • Excludes salaries and administrative expenses • All costs needed to provide distance learning broadcasting to rural areas

  17. Loan Characteristics • Up to 10 years based on the security provided and economic life of the facilities financed • Interest Rates based on Cost of Money to the US Treasury • Yields on Treasury Securities at Constant Maturity • http://www.bog.frb.fed.us/releases/H15/update

  18. APPLICATION SUBMITTAL • Grants (must be submitted to RUS Wash DC) • Consultation (General help only) • Conformance with the State Strategic Plan • Combination and Loans (can also be submitted to RUS-GFR or RD State Director) • Guidance and Submission

  19. RUS LOCAL Contact - Las Vegas, NV. • Harry M. Hutson, GFR • 702-655-5155 • hhutson@rus.usda.gov

  20. AWARDED DLT GRANTS • Kayenta Unified School No. 27 • AZ Borad of Regents,(Whiteriver) • AZ Board of Regents (Hopi Reservation) • Tohono O’odham Nation • Tohono O’odham Community College

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