About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (March 6, 2023)

handle is hein.crs/govekui0001 and id is 1 raw text is: Congressional Research Service lnforrning the legislative debate since 1914 Updated March 6, 2023 Calculation and Use of the Disaster Relief Allowable Adjustment The Budget Control Act (P.L. 112-25, hereinafter the BCA) established mechanisms to limit federal spending, as well as ways to adjust those limits to accommodate certain priority spending. One of these mechanisms-a limited allowable adjustment to discretionary spending limits to pay for the congressionally-designated costs of major disasters under the Robert T. Stafford Disaster Relief and Emergency Assistance Act-represented a new approach to paying for disaster relief. In the past, while some funding for disaster costs had been included in annual appropriations measures as part of the regular funding process, many of these costs had been designated as emergency requirements and were included in supplemental appropriations measures on an ad hoc basis. The disaster relief designation and associated allowable adjustment to spending limits brought more disaster costs into the annual appropriations process, by reducing competition with other funding priorities. This in turn reduced the demand for supplemental appropriations bills and emergency designations. The formula to calculate the size of the allowable adjustment was revised in 2018. Although the statutory authority for the adjustment has expired, ensuing budget resolutions have included the same mechanism, effectively exempting such funding from spending limits within the congressional budget process. Calculating the Maximum Adjustment The maximum size of the allowable adjustment, as defined in 2 U.S.C. §901(b)(2)(D), was originally based on a modified 10-year rolling average of disaster relief appropriations annually reviewed and calculated by the Office of Management and Budget (OMB). To establish amounts for the calculation prior to FY2012, OMB identified appropriations associated with major disaster declarations. For FY2012 and later years, OMB relied on explicit congressional designations of appropriations as disaster relief pursuant to the BCA. The top of Figure 1 shows the appropriations amounts used for FY200 1- FY2020 and the allowable adjustments calculated for FY2012-FY2021. OMB continues its calculations in what it considers an advisory capacity. The calculated average disregarded the high and low funding years in the 10-year data set. If Congress did not fully exercise the allowable adjustment, the unused portion could be rolled forward into the next fiscal year-however, in calculations for FY2012-FY2017, this carryover expired if unused in the next fiscal year. The second part of Figure 1 shows the calculation of the adjustment for FY2017. Annual disaster relief budget authority totals used for the FY2017 allowable adjustment are darkened. The Effect of One-Year Carryover A more detailed look at FY2012-FY2017 in the third part of Figure 1 shows the impact of this one-year carryover. While carryover allowed for slightly greater use of the allowable adjustment than the rolling average alone in Figure I. Calculating the Allowable Adjustment (in billions of nominal dollars of budget authority) Disaster Funding and the Allowable Adjustment Disaster Relief Budget Authority (DRBA) Allwable Adjustment, Orig. Calculation Alowable Adjustment. Mod. Calculation BILLIONS DRBA+Emergency DisasterFunding $40 A $20 $0 -~ N Jn 1 N W0 CD ri r4 Da~lW ~0 O ~- 0 C0 00 D 0 00 0 r-1 r- 1 t-1 t-1 t-H '1 t1 '1 i N N OMB CALCULATION DESIGNATED (FY12-FY21) Calculating the FY2017 Allowable Adjustment Allowable Adjustment is based on previous years' DRBA: Average of previous 10 year DRBA BILLIONS after dropping the highest andi r oest year $40 $8.12$ $2[}a; so BILLIO $2 .-i r? W N s 00 O n 0 - rI( N 00 a r_ Single-Year Carryover and the Adjustment NS Allowable ~- Adjustment Carryover from $15 -Prior Year 10-year $10 Average $s Diaster Relief 4 Budget so _ Authority N c'7 - >- } Source: CRS analysis of data from OMB sequestration reports. Notes: DRBA=Disaster Relief Budget Authority. Red arrows indicate the value is beyond the scale. Total DRBA and emergency- designated disaster relief in FY2018=$96.2 billion; FY2020=$57.5 billion; and FY2021=$69.3 billion.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most