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OMB Bulletin No. 01-03

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|T H E   W H I T E   H O U S E                                          | OMB Bulletin No. 01-03        | Help

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|January 5, 2001

BULLETIN NO. 01-03

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

SUBJECT:  Rescission of FY 2001 Discretionary Budget Authority

**Purpose.**  This Bulletin provides guidance on the rescission of FY 2001 discretionary budget
authority and obligation limitations included in the FY 2001 Consolidated Appropriations Act.

**Background and coverage.**  Section 1403 of the FY 2001 Consolidated Appropriations Act
(relevant portion at the Attachment) rescinds 0.22 percent of all discretionary budget authority
and obligation limitations provided for FY 2001, with the following exceptions.

-  The rescission does not apply to Department of Defense amounts appropriated for military
personnel.

-  The rescission does not apply to amounts appropriated under the FY 2000 Emergency
Supplemental Act.

-  The rescission does not apply to amounts appropriated under the Departments of Labor, Health,
and Human Services, and Education, and Related Agencies Appropriations Act, 2001.The rescission applies to each department, agency, instrumentality, or entity of the Federal
Government, except as specified above.  There are no other exceptions or exemptions.

The rescission applies to all net positive discretionary budget authority and obligation limitations. 
Advance appropriations for FY 2001 provided in FY 2000 or earlier years are subject to the
rescission.  Advance appropriations provided in FY 2001 appropriations acts for FY 2002 and
future years are not subject to the rescission.  Discretionary emergency appropriations are subject
to the rescission.

The Act requires that the 0.22 percent reduction be applied equally to each program, project, and
activity subject to the rescission.  "Programs, projects, and activities" (PPA) are defined as that
level of appropriations detail specified in the appropriations act or accompanying report for the
relevant fiscal year covering each account, including earmarks and directives, or, for accounts
and items not included in appropriations acts, as specified in the program and financing schedules
in the FY 2001 President's budget.

There is no discretion to change the allocation of the rescission among discretionary PPA;  each
must be reduced by 0.22 percent.  The rescission cannot be applied to mandatory PPA, or
transfers of mandatory funds to discretionary PPA.

The Act requires OMB to include in the FY 2002 President's budget a report specifying the
reduction made to each account.

**Required actions.**  Agencies will be separately provided with their rescission amounts by
account by their OMB representative.  Agencies must allocate the reduction on a pro-rata basis to
every program, project, and activity subject to the rescission, without exception.

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

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

Jacob J. LewDirectorAttachment

Attachment
Bulletin No. 01-03

FISCAL YEAR 2001 RESCISSIONS

(a) Sec. 1403. (a) GOVERNMENT-WIDE RESCISSIONS. - There is hereby rescinded an
amount equal to 0.22 percent of the discretionary budget authority provided (or obligation
limitation imposed) for fiscal year 2001 in this or any other Act for each department, agency,
instrumentality, or entity of the Federal Government, except for those programs, projects, and
activities which are specifically exempted elsewhere in this provision:  *Provided,* That this exact
reduction percentage shall be applied on a pro rata basis only to each program, project, and
activity subject to the rescission. 

(b) RESTRICTIONS. - This reduction shall be applied to the amounts appropriated in Title I of
Public Law 106-259;  *Provided,* That this reduction shall not be applied to the amounts
appropriated in Division B of Public Law 106-246;  *Provided further,*That this reduction shall
not be applied to the amounts appropriated under the Departments of Labor, Health and Human
Services, and Education, and Related Agencies Appropriations Act, 2001, as contained in this
Act, or in prior Acts.

(c) REPORT. - The Director of the Office of Management and Budget shall include in the
President's budget submitted for fiscal year 2002 a report specifying the reductions made to each
account pursuant to this section.



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