Sequestration Data Call

The Office of the Management and Budget’s new guidance on sequestration directs the Defense Department and other federal agencies to provide more information and analysis needed to update the estimates in the 400-page Sequestration Transparency Act (STA) report that OMB issued in September and to “finalize calculations of the spending reductions that would be required,” according to an OMB spokeswoman. The updates are needed in light of the current continuing resolution and other developments since September, she said.

The September report detailed preliminary estimates of sequestration’s potential impact on more than 1,200 budget accounts, including initial determinations of the exempt and non-exempt status of those accounts. OMB’s new guidance to federal agencies, issued earlier this week, is technical in nature, the spokeswoman noted. “For example, we requested the sequestrable federal administrative expenses in otherwise exempt mandatory accounts,” she said.

The Pentagon is consulting with OMB and has been instructed to pursue internal planning on sequestration, DOD Press Secretary George Little said Wednesday. "We are at the very start of this process," he said. "We don't have all of the details firmed up. Naturally we hope very much that sequestration will be avoided, and that we don't enter that phase in early January 2013. We do not want to go off the fiscal cliff, but in consultation with OMB, we think that it is prudent at this stage . . . to begin at least some limited internal planning."

“The administration remains focused on reaching agreement as we’ve been discussing on a balanced deficit reduction plan that avoids sequestration,” White House Press Secretary Jay Carney told reporters Wednesday. “Leaders of both parties have pledged to work together in the coming weeks, and we are confident, as I just said, that we can reach an agreement. However, with less than one month left before a potential sequestration order would have to be issued, the Office of Management and Budget must take certain steps to ensure the administration is ready to issue such an order should Congress fail to act.”

The guidance is not a change in the administration’s commitment to reach an agreement and avoid sequestration, Carney said. “OMB is simply ensuring that the administration is prepared, should it become necessary to issue such an order,” he said. “OMB will continue to consult with agencies and will provide additional guidance as needed. This is just acting responsibly because of the potential for this happening.”