B-237700, Nov 9, 1989

B-237700: Nov 9, 1989

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Is less than the sequesterable base identified in the final order. Is less than the sequesterable base identified in the final order. conclude that he may not. Less only amounts which may already have been sequestered. Provides that when the appropriation enacted is less than the sequesterable base identified in the final order. The final order's sequestration amount is reduced by the savings achieved. I trust you will find this discussion useful. /1/ For example. If the part-year appropriation were in effect for 30 days.

B-237700, Nov 9, 1989

APPROPRIATIONS/FINANCIAL MANAGEMENT - Budget Process - Part-year appropriation - Sequestration DIGEST: Section 252 (f)(2)(A) of the Balanced Budget and Emergency Deficit Control Act, as amended, instructs how to sequester part-year appropriations enacted after the issuance of a final sequestration order. The Act does not provide for reducing the sequestration by the amount of savings expected when the part-year appropriation, as projected for the full fiscal year, is less than the sequesterable base identified in the final order.

Honorable Jim Sasser

Chairman, Committee on the Budget

United States Senate:

I am writing in response to your staff's request for our interpretation of section 252(f)(2) of the Balanced Budget and Emergency Deficit Control Act (Act), as amended, 2 U.S.C. Sec. 902(f)(2). Specifically, your staff asked whether the President, in calculating the sequester amount for a part-year appropriation, may reduce the sequester by savings expected when the part-year appropriation, as projected for the full fiscal year, is less than the sequesterable base identified in the final order. conclude that he may not.

Section 252(f)(2) instructs the President how to sequester amounts appropriated after issuance of a final sequestration order. Subparagraph (A) applies to any act making or continuing appropriations for part of the fiscal year, or any act extending, for part of the fiscal year, a previously enacted part-year appropriation. In such situation, the Act requires sequestering the amount specified in the final order pro-rated for the period covered by the appropriation, less only amounts which may already have been sequestered.

The Act provides for calculating the pro-rated amount by multiplying the final order's sequestration amount by a fraction determined by dividing the number of days during the fiscal year to which the part year appropriation act applies by 365. /1/ The Act does not provide for reducing the sequestration by the amount of any projected savings.

In contrast, section 252(f)(2)(B), which applies to full year appropriations (including continuing appropriations for the full fiscal year), provides that when the appropriation enacted is less than the sequesterable base identified in the final order, the final order's sequestration amount is reduced by the savings achieved.

I trust you will find this discussion useful.

/1/ For example, if the part-year appropriation were in effect for 30 days, the sequester amount for an account would be calculated by multiplying the amount specified in the final order for that account by 30/365.