Sec.  54.509   Adjustments to the discount matrix.

   (a) Estimating future spending requests. When submitting their requests for
   specific amounts of funding for a funding year, schools, libraries, library
   consortia, and consortia including such entities shall also estimate their
   funding requests for the following funding year to enable the Administrator,
   to estimate funding demand for the following year.

   (b) Reduction in percentage discounts. At all times other than within a
   filing period described in  Sec. 54.507(c), if the estimates schools and
   libraries make of their future funding needs lead the Administrator to
   predict that total funding request for a funding year will exceed the
   available funding, the Administrator shall calculate the percentage
   reduction to all schools and libraries, except those in the two most
   disadvantaged categories, necessary to permit all requests in the next
   funding year to be fully funded.

   (c) Remaining funds. If funds remain under the cap at the end of the funding
   year in which discounts have been reduced below those set in the matrices,
   the Administrator shall consult with the Commission to establish the best
   way to distribute those funds.

   [ 62 FR 32948 , June 17, 1997, as amended at  62 FR 41304 , Aug. 1, 1997;  63 FR 70572 , Dec. 21, 1998;  69 FR 6191 , Feb. 10, 2004]