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B-221498.32 1 (1986-05-05)

handle is hein.gao/gaobadpvo0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 2=4 B-221498.32 May 5, 1986 The Honorable Dick Cheney House of Representatives Dear Mr. Cheney: This responds to your letter of March 31, 1986, co-signed by Senators Malcolm Wallop and Alan K. Simpson, regarding the President's sequestration, under the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177), of funds from a permanent appropriations account of the Forest * Service. You have asked that we review the analysis of the Office of Management and Budget (OMB) with respect to this * account, and advise you of actions which may be taken to avoid disproportionate reductions. In the present case, the Office of Management and Budget (OMB) has determined that two of three budget account activities in the account in question have been obligated, and has increased the percentage reduction required for the remaining budget account activity. As discussed in more detail below, we agree with OMB's conclusion that the application of Public Law 99-177 may result in disproportionate reductions in accounts in which substantial funds have been obligated. We differ, however, with OMB's opinion that fiscal year 1986 budgetary resources in this account have been obligated to the extent that disproportionate reductions are necessary. OMB's position is based on its view that the sequestrable base for fiscal year 1986 for this account consists of budgetary resources paid out in fiscal year 1986. Our view is that the budgetary resources subject to sequestration in fiscal year 1986 are those that are derived from receipts collected in fiscal year 1986, even though actual payments from such receipts may not be made until after the end of the fiscal year. Fiscal year 1986 receipts have not yet been paid out in full, and may be sequestered at a proportional rate. BACKGROUND The account at issue here is entitled Forest Service Permanent Appropriations (budget appendix account number 12- 9921). It is comprised of three budget account activities involving payments to states and localities under permanent indefinite appropriations. The largest of the three programs involves payments to states of 25 percent of the monies received on National Forest lands, as authorized by 16 U.S.C. § 500. That statutory authority requires payments to be made from the National Forest Fund at the end of each fiscal year from receipts collected