Library Consortium Frequently Asked Questions

Q1. What is a library consortium?
According to the FCC’s rules at 47 C.F.R. Section 54.500 (d), "A ‘library consortium’ is any local, statewide, regional, or interstate cooperative association of libraries that provides for the systematic and effective coordination of the resources of schools, public, academic, and special libraries and information centers, for improving services to the clientele of such libraries. For the purposes of these rules, references to library will also refer to library consortium."
Q2. Can a library consortium be an eligible entity for purposes of obtaining E-rate funding?
Yes. In order for it to meet the eligibility requirements, the library consortium (see Q4 below for eligibility requirements) must either contain public areas that are accessible to library patrons and/or meet the administrative offices and buildings guidelines. (See Administrative Offices and Buildings Fact Sheet in the Reference Area of this web site.) A regional system fits the definition of a library consortium.
Q3. What if my library consortium has members which are both E-rate eligible and non-E-rate eligible?
Only the services for the E-rate eligible consortium members or those services provided by the consortium directly to the public qualify for discounts. Cost allocations must be done to assure that the consortium’s Form 471 application requests discounts only for the E-rate eligible entities.
Q4. What eligibility requirements must a library consortium meet in order to qualify for E-rate funding?
The library consortium must be eligible for assistance from a State library administrative agency under the Library Services and Technology Act (Public Law 104-208).
The library consortium’s budget must be completely separate from the budget of any school (including, but not limited to, elementary and secondary schools, colleges and universities).
The library consortium must not be operating as a for-profit business.
Q5. My library consortium is not eligible for assistance from a State library administrative agency under the Library Services and Technology Act. Is there any other situation under which my library consortium might be eligible for E-rate?
You may consider whether the consortium may qualify as a consortium of eligible entities. In this situation, the services used by the consortium itself are not eligible for discounts, but the eligible services used by the eligible members of the consortium may qualify for discounts. You would treat the consortium as one having both eligible and ineligible members, and do cost allocations and apply for funding only for the eligible members’ services.
In this case, the library consortium would check application type "Consortium" in Block 1, Item 5 of the Form 471, and complete Worksheet C along with any necessary preparatory Worksheets B.
Q6. How should a library consortium compute its discount level?
Situation #1. For services procured by and used by the library consortium at its own site or location, the library consortium shall use the discount level applicable to the school district in which the library consortium is located. In this situation, the library consortium would check application type "Library" in Block 1, Item 5 of the Form 471, and complete Worksheet B. Also note that the eligibility rules for administrative offices and buildings must be observed. Please refer to the Administrative Offices and Buildings Fact Sheet in the Reference Area of this web site.
Situation #2. For services procured on behalf of all of the eligible member libraries that are part of the consortium, each consortium member must use the discount calculation that applies to their entity (either outlet/branch or system), sum the consortium member discounts, and divide by the the total number of consortium members. In this situation, the library consortium would check application type "Consortium" in Block 1, Item 5 of the Form 471, and complete Worksheet C along with any necessary preparatory Worksheets B.
http://www.sl.universalservice.org/reference/library.asp