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. If the estimates schools and 
libraries make of their future funding needs lead the Schools and 
Libraries Corporation to predict that total funding requests for a 
funding year will exceed the available funding, the Schools and 
Libraries Corporation 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 the discounts have been reduced below those set in 
the matrices above, the Administrator shall inform the Schools and 
Libraries Corporation of such remaining funds. The Schools and Libraries 
Corporation then 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]