Calculating Your Discount
If you are applying for Erate discounts on eligible services, you must calculate
the percentage discount that schools or libraries are eligible to receive.
Discount calculation instructions follow for each application type:
 School
 School District
 Library (Outlet/Branch)
 Library (System)
 Consortium
Examples of the discount calculation for each application type are shown immediately
following the calculation instructions. The data for these examples were pulled
from the sample data found at the end of this document. You can also find a
copy of the Discount Matrix at the end of this table.
Information about your Urban or Rural classification can be found in the Reference
Area of this web site. If you do not know the Entity Number for a particular
school or library, check the Entity Numbers listed in the Reference Area of
this web site or call the Client Service Bureau at 18882038100. For information
about how to determine the discount calculation for "New School Construction"
or "New Library Construction" or for "Administrative Entities,"
refer to the Form 471 Instructions. More information on how to calculate your
discount can be found in the Form 471 Instructions for Block 4.
Calculations labeled with an (A) indicate that these calculations will be done
automatically when you file online.
School:
Complete Columns 1  7 of Block 4, Worksheet A
Column 1:

List the name of the eligible school.



Column 2:

List the school’s Entity Number.



Column 3:

Determine whether the school is classified as Urban or Rural.



Column 4:

List the total number of K12 students in the school.



Column 5:

Provide the number of students eligible for the National School Lunch
Program.



Column 6:

Divide Column 5 by Column 4 to arrive at the percentage of students eligible
for the National School Lunch Program. (Discount calculations may be rounded
up only when fully half a discount point is reached.) (A)



Column 7:

Using the percentage in Column 6 and the Discount Matrix, determine the
percentage discount to which the school is entitled. Enter that percentage
in Column 7. (A)

School Example:
1

2

3

4

5

6

7

8

Name of Eligible School

Entity Number

Urban or Rural
U or R

Total # of Students

# of Students Eligible for NSLP

% Students Eligible for NSLP
(Col. 5 ÷ Col. 4)

Discount % from Discount Matrix

Weighted Product for Calculating Shared Discount
(Col. 4 x Col. 7)

Polk Elementary School

XXXXXX

R

64

31

48.437

70%


School District:
Complete Columns 1  8 and Item 10c of Block 4, Worksheet A
Column 1:

List the name of each eligible school.



Column 2:

List each school’s Entity Number.



Column 3:

Determine whether each school is classified as Urban or Rural.



Column 4:

List the total number of K12 students in each school.



Column 5:

Provide the number of students eligible for the National School Lunch
Program for each school.



Column 6:

Divide Column 5 by Column 4 to arrive at the percentage of students eligible
for the National School Lunch Program for each school. (Discount calculations
may be rounded up only when fully half a discount point is reached.) (A)



Column 7:

Using the percentage in Column 6 and the Discount Matrix, determine the
percentage discount to which each school is entitled. Enter that percentage
in Column 7. (A)



Column 8:

For each school receiving an appropriate share of shared services, multiply
the discount rate for the School (Column 7) by the number of students
in the school (Column 4). (A)



Column 8, last cell:

Add together all of the products in Column 8 and enter the total in the
cell at the bottom of this column (A)



Item 10c:

Divide the total at the bottom of Column 8 by the total at the bottom
of Column 4. Round the result to the nearest whole number percentage,
and enter it into Item (10c). (A)

School District Example:
School District Name: Washington School District

School District Entity Number: xxxxxx

1

2

3

4

5

6

7

8

Name of Eligible School

Entity Number

Urban or Rural U or R

Total # of Students

# of Students Eligible for NSLP

% Students Eligible for NSLP
(Col. 5 ÷ Col. 4)

Discount % from Discount Matrix

Weighted Product for Calculating Shared Discount
(Col. 4 x Col. 7)

Madison Elementary

xxxxxx

U

127

49

38.582

60%

76.2

Adams Middle School

xxxxxx

U

195

67

34.358

50%

97.5

Washington High School

xxxxxx

U

142

47

33.098

50%

71

Totals for calculating Weighted Average Discount



464




244.7

10c
Weighted Average Discount % for Shared Services
(Col. 8 total divided by Col. 4 total. Round to nearest %)

53%

Library (Outlet/Branch):
Complete Columns 1  4 of Worksheet B
Column 1:

List the name of the eligible library outlet/branch.



Column 2:

List the Entity Number for the library outlet/branch.



Column 3:

List the name of the public school district in which the library outlet/branch
is located.



Column 4:

First, determine whether the library outlet/branch is classified as Urban
or Rural. Then, for the public school district listed in Column 3, calculate
the percentage of students eligible for the National School Lunch Program
(NSLP) as follows:


a.

Determine the number of students eligible for NSLP in the school
district.

b.

Determine the total number of students in the school district.

c.

Divide the number of students eligible for NSLP by the total number
of students to arrive at the percentage of students in the school
district eligible for NSLP. (Discount calculations may be rounded
up only when fully half a discount point is reached.)

Using the percentage calculated in (c), the urban/rural status of the
library outlet/branch, and the Discount Matrix, determine the percentage
discount to which the library outlet/branch is entitled.

Library (Outlet/Branch) Example:
1

2

3

4

Name of Eligible Library
(outlet/branch)

Entity Number

Name of School District
in which outlet/branch in Column 1 is located

Discount %
from Discount Matrix

Polk Public Library

xxxxxx

Lincoln School District

80

Explanation of example:
Polk Public Library is classified as Rural. The library's calculation for Lincoln
School District (the public school district in which Polk Public Library is
located) is performed as follows:
Total number of students eligible for NSLP:

31 + 62 = 93

Total number of students in the school district:

64 + 92 = 156

Percentage of students eligible for NSLP:

93 / 156 = 59.615 %

Discount Matrix discount for rural location and
NSLP percentage eligibility of 59.615:

80 %

Library (System):
Complete Columns 1 4 and Item 10c of Worksheet B
Column 1:

List the name of each eligible library outlet/branch.



Column 2:

List the Entity Number for each library outlet/branch.



Column 3:

List the name of the public school district in which each library outlet/branch
is located.



Column 4:

For each library outlet/branch, use the urban/rural status of the library
outlet/branch, the percentage of students eligible for the National School
Lunch Program in the public school district listed in Column 3, and the
Discount Matrix to determine the percentage discount to which the library
outlet/branch is entitled. (See Library (Outlet/Branch)
example above.)



Column 4, last cell:

Add up all of the discounts in this column and enter the total in the
cell at the bottom of Column 4. (A)



Item 10c:

Divide the total at the bottom of Column 4 by the total number of library
outlets/branches listed in Column 1. Round the result to the nearest whole
number percentage, and list this number in Item 10c. (A)

Library (System) Example:
Library System Name: Washington Library System

Library System Entity Number: xxxxxx

1

2

4

5

Name of Eligible Library
(outlet/branch)

Entity Number

Name of School District
in which outlet/branch in Column 1 is located

Discount %
from Discount Matrix

Washington Main Library

xxxxxx

Washington School District

60

Jefferson Branch Library

xxxxxx

Washington School District

60

Monroe Branch Library

xxxxxx

Lincoln School District

80

Totals for calculating Shared Discount



200

10c
Shared Discount %
(Col. 4 total divided by # of outlets/branches in Col. 1. Round to nearest
%)

67%

Consortium:
Complete Columns 13 and Item 10c of Block 4, Worksheet C
Column 1:

List the name of the eligible member of the consortium.



Column 2:

List the Entity Number for each eligible member of the consortium.



Column 3:

Provide the correct discount for each eligible member depending on the
type of entity it is.



Column 3, last cell:

Add up all of the discounts in this column and enter the total in the
cell at the bottom of this column. (A)



Item 10c:

Divide the total at the bottom of Column 3 by the total number of consortium
members listed in Column 1. Round the result to the nearest whole number
percentage, and list this number in Item 10c. (A)

Consortium Example:
1

2

3

ELIGIBLE MEMBER ENTITIES
Name of each school, school district and/or library
(i.e. outlet/branch, system) in consortium

ENTITY NUMBER
For each entity listed
in Column 1

ENTITY DISCOUNT
School: Discount from Worksheet A, Column 7
School District: Weighted Average Discount from Worksheet A, Item
10c Library (outlet/branch): Discount from Worksheet B, Column
4
Library System: Discount from Worksheet B, Item 10c

Polk Elementary School

xxxxxx

70

Washington School District

xxxxxx

53

Polk Public Library

xxxxxx

80

Washington Library System

xxxxxx

67

Totals for calculating Shared Discount


270

10c
Shared Discount %
(Col. 3 total divided by # of entities in Col. 1. Round to nearest %)

68%

Sample Data for Calculating Discounts:
Entity

Entity Number

Location

Urban or Rural (U/R)

Total # of Students

# of Students Eligible for NSLP

Washington School District

xxxxxx





Madison Elementary

xxxxxx


U

127

49

Adams Middle School

xxxxxx


U

195

67

Washington High School

xxxxxx


U

142

47

Lincoln School District

xxxxxx





Polk Elementary School

xxxxxx


R

64

31

Lincoln Junior/Senior High School

xxxxxx


R

92

62

Polk Public Library

xxxxxx

Lincoln School District

R



Washington Library System

xxxxxx





Washington Main Library

xxxxxx

Washington School District

U



Jefferson Branch Library

xxxxxx

Washington School District

U



Monroe Branch Library

xxxxxx

Lincoln School District

R



Discount Matrix:
INCOME
Measured by % of students eligible for the National School Lunch
Program

URBAN LOCATION
Discount

RURAL LOCATION
Discount

If the % of students in your school that qualifies for the National School
Lunch Program is...

…and you are in an URBAN area, your discount will be...

…and you are in a RURAL area, your discount will be...

Less than 1%

20%

25%

1% to 19%

40%

50%

20% to 34%

50%

60%

35% to 49%

60%

70%

50% to 74%

80%

80%

75% to 100%

90%

90%

Content Last Modified: November 27, 2002
