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OMB Bulletin No. 00-01

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|T H E   W H I T E   H O U S E                                          | OMB Bulletin No. 00-01        | Help

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|November 24, 1999

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. LewDirectorAttachments
Attachment A
Bulletin No.  00-01

**FISCAL YEAR 2000 DISCRETIONARY BUDGET
AUTHORITY RESCISSION**

Sec._____ (a) Government-wide Rescissions. -There is hereby rescinded an amount equal to
0.38 percent of the discretionary budget authority provided (or obligation limit imposed) for fiscal
year 2000 in this or any other Act for each department, agency, instrumentality or entity of the Federal
Government.

(b) Restrictions. -In carrying out the rescissions made by subsection (a), -

(1) no program, project or activity of any department, agency, instrumentality or entity may
be reduced by more than 15 per cent (with "programs, projects, 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),

(2) no reduction shall be taken from any military personnel account, and

(3) The reduction for the Department of Defense and the Department of Energy Defense
Activities shall be applied proportionately to all Defense accounts.

(c) Report. -The Director of the Office of Management and Budget shall include in the
President's budget submitted for the fiscal year 2001 a report specifying the reductions made to
each account pursuant to this section.

Attachment B
Bulletin No.  00-01

**Rescission of Fiscal Year 2000 Discretionary Budget Authority by
Account**

Agency:  _______________________

**Allocation Methodology:**

[For the Department/Agency as a whole, describe the overall methodology that you
used to allocate the rescission.]

**Account Detail:**

(budget authority/obligation limitation in thousands of dollars)
**Account Title
Treasury
Account
Number
xx-xxxx

FY 2000 Recission Amount

[List each Treasury account to which the reduction is being applied.]**

**Explanation**:

[For each account with a reduction of $10 million or more, include a specific explanation of
how the reduction is applied at the program, project, or activity level.  Describe your methodology for
applying the reduction within the account including, where appropriate, reference to the four
criteria listed in the Bulletin.]



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