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B-324723 1 (2013-07-31)

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AComptroller General
                   U.S. GOVERNMENT ACCOUNTABILITY OFFICE      of the United States
United States Government Accountability Office
Washington, DC 20548


          B-324723

          July 31, 2013

          The Honorable Paul Ryan
          Chairman
          Committee on the Budget
          House of Representatives

          Subject: March 1 Joint Committee Sequestration for Fiscal Year 2013

          Dear Mr. Chairman:

          The failure of the Joint Select Committee on Deficit Reduction to propose, and
          Congress and the President to enact, legislation to reduce the deficit by $1.2 trillion
          triggered the sequestration process in section 251A of the Balanced Budget and
          Emergency Deficit Control Act of 1985 (BBEDCA), as amended. Section 251A
          required the Office of Management and Budget (OMB) to calculate, and the
          President to order, a sequestration of discretionary and direct spending on March 1,
          2013. BBEDCA also required OMB to submit a report to Congress on that same
          date. You requested that GAO review several aspects of sequestration including the
          President's March 1 sequestration order and OMB's March 1 report; agencies'
          planning and implementation of sequestration and what alternatives were
          considered; and the effects of sequestration on agency operations and on services
          to the public. As agreed with your staff, this opinion responds to your request that
          we review whether the March 1 actions-OMB's calculations, the President's
          sequestration order, and OMB's report-complied with section 251A of BBEDCA.1
          As explained below, we conclude that OMB's calculations, the March 1
          sequestration order, and the March 1 report satisfied the BBEDCA requirements.

          BACKGROUND

          Sequestration is the cancellation of budgetary resources under a presidential
          order. GAO, A Glossary of Terms Used in the Federal Budget Process,

          1 Forthcoming GAO reports will address the remaining questions and examine how
          agencies planned for and implemented sequestration. The reports also plan to
          discuss the effects of sequestration on agency operations and on services for the
          public.

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