39.500—What emergency and contingency funds are available?
               		
               	 	
               	 	
               	 	               	 	               	 	               	 	               	 	
               	 	
    
         The Secretary:
    
    
        
        (a) 
         Must reserve 1 percent of funds from the allotment formula to meet emergencies and unforeseen contingencies affecting educational programs;
     
    
        
        (b) 
         Can carry over to the next fiscal year a maximum of 1 percent the current year funds; and
     
    
        
        (c) 
         May distribute all funds in excess of 1 percent equally to all schools or distribute excess as a part of ISEP.