# Presentation: 373523

## 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

- 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

## 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.)

## 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

## 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.

## DLT Financial Assistance

- 100% Grant
- Combination Loan and Grant
- 100% Loan

## 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

## Eligible Grant Purposes

- Eligible Equipment
- Instructional Programming
- Technical Assistance and Instruction
- limited to 10% of the Grant

## 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

## 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

## 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.

## 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

## 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!**

## 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

## 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

## 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

## 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

## RUS LOCAL Contact - Las Vegas, NV.

- Harry M. Hutson, GFR
- 702-655-5155
- hhutson@rus.usda.gov

## 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