BULLETIN NO. 00-01

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

SUBJECT:  Rescission of FY 2000 Discretionary Budget Authority

Purpose. This Bulletin provides guidance on the rescission of FY 2000 discretionary budget authority and obligation limitations made by the FY 2000 Consolidated Appropriations Bill.

Background and coverage. The FY 2000 Consolidated Appropriations Bill (relevant portion at Attachment A) rescinds 0.38 percent of discretionary budget authority and obligation limitations provided for FY 2000. This includes advance appropriations for FY 2000 provided in FY 1999 or earlier years. It does not include FY 2001 advance appropriations provided in the FY 2000 Consolidated Appropriation Bill or other Acts.

The rescission applies to each department, agency, instrumentality, or entity of the Federal Government. There are no exceptions or exemptions. The rescission applies to all net discretionary budget authority and obligation limitations.

The Bill requires:

• that no program, project, or activity of any department, agency, instrumentality or entity may be reduced by more than 15 percent, with "program, project, and activities" as delineated in the appropriations Act or accompanying report for the relevant account, or for accounts and items not included in appropriations Acts, as delineated in the most recently submitted President's budget;
• that no reduction be taken from military personnel accounts;
• that reductions for the Department of Defense and the Department of Energy, Defense Activities, shall be applied proportionally to all Defense accounts; and,
• that OMB report to the Congress in the FY 2001 Budget on the allocation of the rescission.

Required actions. Agencies will be separately provided with their rescission amount by their OMB representative. Agencies have the discretion to determine the allocation of their required rescission amount by budget account, program, project, or activity, consistent with the provisions of the law described above. Agencies are directed to use the following criteria in making the allocation.

• Reductions should be taken from the least critical funding available to the agency.
• Reductions should be considered from enacted funding above the President's request.
• Wherever possible, no reductions should be taken that would require reductions-in-force.
• Agencies should make targeted recommendations rather than an across-the-board funding cut.

Please note that the Bill requires that all reductions are to be made from discretionary budget authority and obligation limitations only.

Agencies must submit their proposed allocation of the reduction by accounts and the amounts of the rescission in the format of Attachment B, and any additional supporting information requested by the RMO, to their OMB representative by December 3, 1999.

Agencies are asked in Attachment B to explain the overall allocation methodology for the reductions, including a specific explanation of how reductions are applied at the program, project, or activity level for reductions of $10 million or more to any account. The reasons may include, but are not limited to, the criteria mentioned above.

Agencies should reflect their proposed allocations in their FY 2000 apportionments, which are due to OMB 10 days after enactment of the FY 2000 Consolidated Appropriations Bill. OMB will work with agencies on changes, if any, to their proposed allocation as part of the apportionment process.

Contact. Questions regarding this Bulletin should be directed to the agency's OMB representative.

Jacob J. Lew
Director

Attachments

Attachment A
Bulletin No. 00-01