§  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 § 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]