On August 17, the White House Office of Management and Budget (OMB) issued a memorandum to all
Federal agencies to provide guidance on their fiscal year (FY) 2013 budget submissions. Each agency is
required to submit a proposed budget request to OMB in September for the next fiscal year to guide the
President’s annual budget request to Congress which will be released in early 2012. The memorandum
states that all agencies, unless explicitly notified by OMB, must submit a budget request for FY 2013 that
is five percent below their FY 2011 enacted discretionary funding level. Budget submissions must also
identify additional discretionary spending cuts amounting to 10 percent below their FY 2011 enacted
funding level.

Key take‐aways for science and education:

1) Federal science and education programs, while a priority of the Administration, may be subject
to the proposed reductions in the President’s budget request for FY 2013. The memorandum
states that the proposed reductions should not take the form of across‐the‐board cuts, meaning
that agencies will be expected to identify specific programs for reduction.
2) Near term requests from Federal agencies for program justifications or spend plans have
heightened importance in this tough fiscal environment.
3) Similar guidance from OMB has occurred in past years and many science and education
programs still fared well in the budget request that the President ultimately sends to Congress.
4) This process is meant to inform the President’s FY 2013 budget request, which will still be
subject to Congressional approval and may be adjusted based on the outcome of the FY 2012
appropriations process and the deficit reduction deal in the coming months.

The memorandum states that the proposed reductions were necessary to comply with discretionary
spending caps and mandates for additional deficit reduction passed as part of the Budget Control Act of
2011 (the debt ceiling agreement). The Budget Control Act of 2011 set discretionary spending for FY
2013 at $1.047 trillion, roughly $2 billion (less than one percent) below the FY 2011 enacted level. The
legislation also mandates additional deficit reduction of at least $1.2 trillion over the next 10 years.
 

In addition to identifying cuts, the memorandum urges Federal agencies to identify priority programs
that should receive added investment in the FY 2013 request, especially those programs that promote
economic growth. Agencies were also advised to consolidate duplicative programs and develop cost savings
efforts internally to improve operational efficiency.
 

The full memorandum can be found on the White House website at:
http://www.whitehouse.gov/sites/default/files/omb/memoranda/2011/m11‐30.pdf
 

Lewis‐Burke will continue to monitor the budget formulation process for FY 2013 and report on any
updates.