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OMB delivers “sequestration preview”

April 11, 2013

The Children’s Mental Health Network is indebted to the tireless efforts of Emily Holubowich of the Coalition for Health Funding for her refusal to sleep (we think) so that we can have the latest information on the dizzying carny ride known as the budget. Here is the latest:

  • The Office of Management and Budget has issued an FY 2014 “sequestration preview” report to Congress, available here.

    Based on current law, if sequestration remains in effect for FY 2014 there will be a $91 billion reduction in the discretionary caps and a sequestration of $18 billion in nonexempt mandatory spending (cuts to the nondefense mandatory programs are expected to be 7.3 percent).

    The defense discretionary cap will be cut by $54 billion and the NDD cap by $37 billion.

    The House has set very different discretionary caps. The House budget has NDD absorbing full responsibiltiy for the $91 billion sequestration cut, and exempts defense.

    The Senate discretionary caps and sequestration cuts are closer to this OMB report–which ends up at a post-sequestration NDD cap of about $54 billion more than the House level.

    The practical implication: there will be a dramatic difference between the House and Senate NDD allocations (and thus the approriations bills) if the chambers are unable to come to an agreement on the caps (which is the likely scenario) and have to “deem” different levels.

    The president’s FY 2014 sequestration order, pursuant to this report can be downloaded here.

    And remember, the president’s budget request is pre-qeustration. It does NOT include sequestration cuts. 

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