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B-284566.2 1 (2000-08-09)

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~GAO                         __            _        _        _        __


United States General Accounting Office                       Office of the General Counsel
Washington, DC 20548



         B-284566.2

         August 9, 2000


         Ms. Anne Wicks
         Acting Executive Officer
         District of Columbia Courts
         500 Indiana Avenue
         Washington, D.C. 20001

         Subject: Rescission of District of Columbia Courts Appropriations

         Dear Ms. Wicks:

         This completes our response to a January 20, 2000 letter from the former Executive
         Officer, District of Columbia Courts (D.C. Courts). The former Executive Officer
         asked a number of questions concerning the proper accounting for certain payments,
         which we addressed in B-284566, April 3, 2000. The former Executive Officer also
         asked about the applicability to the D.C. Courts of the .38 percent rescission of
         discretionary budget authority made by the Consolidated Appropriations Act for
         Fiscal Year 1999, Pub. L. No. 106-113, Division B § 1005(a)(5), 113 Stat. 1501, 1535
         (November 29, 1999).

         Specifically, the rescission applies to discretionary budget authority provided.., for
         fiscal year 2000 in this or any other Act for each department, agency, instrumentality,
         or entity of the Federal Government. The Office of Management and Budget (OMB)
         applied the rescission to two D.C. Courts appropriation accounts. The former
         Executive Officer questioned whether the rescission applies to D.C. Courts, stating
         that the federal government and the District of Columbia are separate legal entities.
         For the reasons explained below, we conclude that OMB's application of the
         rescission to the D.C. Courts discretionary accounts is reasonable.

         Background

         During Congress's consideration of the fiscal year 2000 federal budget, OMB warned
         that discretionary spending limits might be exceeded and a sequestration of
         discretionary spending might be required. See OMB Sequestration Update Report to
         the President and Congress for Fiscal Year 2000, April 25, 1999. Rather than relying
         on a possible sequestration order, Senator Nickles offered the following amendment

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