Budget Issues: Compliance Report Required by the Budget Enforcement Act
of 1990 (Letter Report, 01/10/94, GAO/AIMD-94-66).

In GAO's opinion, the Office of Management and Budget (OMB) and the
Congressional Budget Office sequestration reports substantially complied
with the law with two exceptions.  Their inflation adjustment to the
fiscal year 1994 discretionary spending limits was incomplete because it
did not cover personnel costs.  Also, OMB's final sequester report did
not include an upward adjustment to the 1993 discretionary spending
limits for released contingent emergency appropriations.  If the
inflation adjustment had been applied to all discretionary spending, the
spending limit for discretionary budget authority would have been about
$2.3 billion lower because actual inflation was lower than that assumed
in the Budget Enforcement Act when caps were originally set in 1990.
Appropriated amounts, however, were far enough under the spending limit
that such an adjustment would not have required a sequester. OMB's
decision not to adjust the 1993 discretionary spending limits for the
release of contingent emergency appropriations resulted in official
discretionary spending limits that understated the full amount of
spending allowed by $132 million but did not affect any sequestration
calculation.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-66
     TITLE:  Budget Issues: Compliance Report Required by the Budget 
             Enforcement Act of 1990
      DATE:  01/10/94
   SUBJECT:  Reporting requirements
             Budget authority
             Balanced budgets
             Budget deficit
             Inflation
             Spending legislation
             Compliance
             Budget administration
IDENTIFIER:  USDA Wetlands Reserve Program
             USDA Conservation Reserve Program
             USDA Market Promotion Program
             Food Stamp Program
             Defense Business Operations Fund
             National Defense Stockpile
             
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