OMB Clarifies 2013 Budget Guidance Memo to Federal Agencies

After releasing a memo instructing federal agencies to submit 2013 budget requests that are between 5 and 10 percent lower than current appropriation funding levels, the Office of Management and Budget (OMB) wrote a blog on August 18 to provide clarification. OMB Director Jack Lew clarified that not all agency budgets will be cut by 5 to 10 percent in 2013, but that the president is working to identify waste and eliminate inefficient programs while putting additional resources into effective programs.  The administration is looking to avoid making across-the-board cuts which means some agency budgets will be cut more than others.  AGC will continue to promote construction spending to reduce the impacts these cuts may have on construction budgets and the industry. In addition, the Congressional Budget Office released the “Budget and Economic Outlook: An Update” yesterday, August 24.  In the report, CBO projected a $1.3 trillion budget deficit for FY 2011, the third-largest shortfall in the past 65 years. TCBO also went on to report that his year's deficit stems in part from the long shadow cast on the U.S. economy by the financial crisis and the recent recession, the pace of the recovery has been slow and the economy remains in a severe slump. The report also warned that if policies don’t change to curb federal spending, much greater deficits and a higher national debt could result, slowing the economic recovery.  To read the full report, please click here. For more information, please contact Marco Giamberardino at (703) 837-5376 or giamberm@agc.org.