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]