The Office of Management and Budget is urging federal agencies not to resort to layoffs as they find ways to implement an across-the-board cut required by Congress.
In a Nov. 24 bulletin to agency heads, OMB Director Jacob Lew said that "wherever possible, no reductions should be taken that would require reductions-in-force."
The fiscal 2000 consolidated appropriations bill, signed by President Clinton last week, reduced all federal agencies' budgets by 0.38 percent, or a total of $1.3 billion. But the bill gave agencies discretion to determine how to allocate the cut within their programs.
"As far as each agency or department goes, it does have to have a 0.38 percent reduction," said OMB spokeswoman Linda Ricci. "But it has enormous discretion in protecting given areas. They can exempt certain programs and activities if they choose."
The bill put some limitations on how agencies can apply the cut:
- No specific program may be reduced by more than 15 percent.
- No reduction may be made to military personnel accounts.
- Reductions in the Defense Department and defense programs at the Energy Department must be applied proportionally to all Defense accounts.
Lew further directed agencies to make cuts to the "least critical" funding available, particularly to funds that Congress allocated above President Clinton's budget request.
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