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FINAL SEQUESTRATION REPORT
FOR FISCAL YEAR 1989
 
 
October 11, 1988

A Congressional Budget Office Report to
the Congress and the Office of Management and Budget  
 

NOTES

All years referred to in this report are fiscal years, unless otherwise noted.

Details in the tent and tables of this report may not add to totals because of rounding.

The Balanced Budget and Emergency Deficit Control Act of 1985 (commonly known as Gramm-Rudman-Hollings) is also referred to in this report more briefly as the Balanced Budget Act. The amendments to this act made by Public Law 100-119, the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987, are also referred to in this report more briefly as the Reaffirmation Act.

The source for all data in this report is the Congressional Budget Office, unless otherwise noted.

 
 
CONTENTS

INTRODUCTION

BUDGET BASELINE TOTALS

REQUIRED OUTLAY REDUCTIONS

AUTOMATIC SPENDING INCREASES

SPECIAL RULES

SEQUESTRATION REDUCTIONS

APPENDIX A - SEQUESTRATION REDUCTIONS BY AGENCY AND BUDGET ACCOUNT

APPENDIX B - DEFENSE SEQUESTRATION REDUCTIONS BY PROGRAM, PROJECT. AND ACTIVITY
 
TABLES
 
1.  CBO Estimates of Budget Baseline Totals for 1989
2.  CBO Estimates of Deficit Changes for Fiscal Year 1989: August 15 through October 7, 1988
3.  CBO Sequestration Calculations for Fiscal Year 1989
4.  Automatic Spending Increases for Fiscal Year 1989 Subject to Sequestration
5.  Defense Program Sequestrations for Fiscal Year 1989
6.  Nondefense Program Sequestrations for Fiscal Year 1989 by Function

 
 

INTRODUCTION

On August 20, the Congressional Budget Office (CBO) transmitted its initial sequestration report for fiscal year 1989 to the Office of Management and Budget (OMB) and the Congress.1 Following the specifications provided by the Balanced Budget Reaffirmation Act, CBO projected a fiscal year 1989 federal budget deficit of $153.0 billion--$17.0 billion above the maximum deficit allowed in the act, and $7.0 billion above the level that would trigger sequestration. CBO now estimates that laws enacted and regulations implemented since its initial report have decreased the fiscal year 1989 deficit to $151.8 billion, and decreased the excess deficit to $15.8 billion.

Under the Reaffirmation Act, CBO's role in the sequestration process is strictly advisory; an independent estimate of the projected deficit will be made by the Director of OMB on October 15, 1988, and that estimate will determine the necessity and magnitude of sequestration. OMB's deficit estimate is expected to be within the $10 billion margin-of-error specified by the act for 1989. If so, sequestration will not be triggered for 1989.

This document is available in its entirety in PDF.

1. Federal Register, August 22,1988, pp. 31970-32027.