TRANSMITTAL OF VARIOUS ITEMS RELATED TO BUDGET DEFICIT
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP87M01152R001101400018-1
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
13
Document Creation Date:
December 23, 2016
Document Release Date:
February 4, 2013
Sequence Number:
18
Case Number:
Publication Date:
November 25, 1985
Content Type:
MEMO
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Attachment | Size |
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CIA-RDP87M01152R001101400018-1.pdf | 536.96 KB |
Body:
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(b)(3)
2` November 1985
DIRECTCF, OFFICT OF FINANCE
(b)(3)
Chief, Lc-:illation, Division.
Office cf Le^-is1ativc Liaison
SUBJECT: Transmittal of Various Items Related
to Budoet Deficit
1. Attached for your information please find a copy of a
memorandum to all agency heads from the Office of Management
and Budget (OML). It concerns actions to be taken in the event
of various combinations of Congressional action/inaction on
appropriations, debt ceiling and debt reduction bills. The
re-orarcur was transmitted on the eve of the last budgetary
crisis. Kith Congressional action resulting in an interim
raising of the debt ceiling, however, the memorandum was
overtaken by events for the time being.
2. I am also forwarding to,you a copy of H.J.Res. 372, the
latest version of the proposal to tie the raising of the debt
ceiling to the elimination of the federal deficit over the next
five years, the so-called "Gra.r-Rudr:.an" proposal. This
proposal has passed both houses of Congress in different
fcrrs: the House version is the version in small italic; the
Senate version is in bold italic. The conferees have already
met once unsuccessfully and are continuing to meet over the
course of the next two weeks.
As you may know, the interim raising of the debt
cEilin is due to expire on December 6, 1985. The Department
of the Treasury, however, has indicated informally that it has
sufficient resources available to refrain from raising the
ceiling until December 12, 1985. Assuming there is no
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Congressional action in the meantime, however, it is possible
that the Agency might find itself in one 'of the situations
outlined in the 0MB memorandum.
4. 1 will keep you advised of developments in this area,
includinc developments on related issues such as the passage of
a f.:rther continuing resolution and various appropriations
tiiis. Should you have any questions on the attached materials
or this letter in general, please do not hesitate to call me
(e>::.
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. O.C. 20603
MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
FROM: Jame r III
SUBJECT: /eActi20AMou Must Take In the Event of an
opriations and/or Debt Ceiling Hiatus This
Unless the Congress of the United States takes appropriate
action to resolve appropriations and debt ceiling problems by
November 14, 1985, the United States Government will be faced
with one of three extraordinary situations requiring your
immediate and undivided attention. Among these possibilities is
the prospect that the government will default on financial
obligations because of this impasse. This memorandum is being
issued to provide instructions on how to meet those situations
should one of them occur.
Specific action may be required of you on next Friday morning
(November 15th) if:
(1) the statutory debt ceiling has been raised, but no
continuing resolution or appropriations bill for your
agency has been enacted (only two out of thirteen
appropriations bills have been sent to the President thus
far); or
(2) a continuing resolution or appropriations bill for your
agency has been enacted, but Congress has not acted to
raise the current debt ceiling; or
(3) neither a continuing resolution nor appropriations for
your agency has been enacted, nor has Congress acted to
raise the current debt ceiling.
At the present time, there are bills pending before Congress
to resolve both the appropriation/continuing resolution and debt
ceiling problems. However, Congress has faced these problems
since early October and thus far has been unable to agree on
solutions. Thus, we have concluded very reluctantly that it is
necessary to inform you of the steps you must take should
Congress fail to take necessary action.
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The steps required for each of these situations are
summarized below.
I. Congress Has Not Enacted a Continuin Resolution or
Increase In the e e ng
This situation would present what the Government has
experienced before and require initiation of the "shut-down"
procedures pursuant to plans previously prepared and described in
0MB memoranda dated August 28, 1980 and November 17, 1981, copies
of which are attached. These plans should be implemented as of
the opening of business on November 15th. In particular, your
employees should be instructed to report for work on that morning
to complete shut-down activities. Any questions regarding these
instructions should be directed to your 0MB budget examiner.
II. Congress Has Enacted a Continuing Resolution or
Appropriations Act for Your Agency, But Has N3_t Enacted
an increase in the DeDlC Ceiling
As you may know, the law (31 U.S.C. 3101, as amended)
establishes the maximum amount the Federal Government may borrow
to discharge its obligations. (The current ceiling is $1,823.8
billion.) The Secretary of the Treasury has concluded that
unless Congress enacts a new, higher limit by Thursday, November
14, 1985, the United States Government will not have the cash
available to meet its payment obligations, including interest
payments due on the public debt. In the absence of Congressional
action to raise the debt ceiling, and assuming that an acceptable
continuing resolution or appropriations bill for your agency has
been approved, you should continue to operate lawfully and to
incur obligations. However, a cash-flow crisis will occur when
expenditures are presented to the Federal Reserve Banks for
payment.
There is no precedent in our history for such a situation. It
is all but unthinkable because of the attendant impact in our
international interests, our economy, and the pain and suffering
that would ensue. Yet, the prospect is real, and we must prepare
for it.
For several days, alternatives have been reviewed by the
President and his advisors. After careful consideration, and
notwithstanding the dilemma created by Congressional inaction,
the available alternatives have been rejected as completely
unacceptable -- including, but not limited to the sale of the
Federal gold reserve and disinvestment of the Federal trust funds
to raise cash rather than to pay benefits.
The policies that apply to all agencies are as follows:
1. Payments. You should delay payments to vendors for
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goods and services rendered or progress payments due. You should
also delay payments to beneficiaries. This payment freeze
applies equally to defense and civilian accpunts. Your agency
should process checks or other forms of payment in the usual
fashion, but no employee (including disbursing officers) should
mail the checks or otherwise make payments in any form --
including, but not limited to, wire transfer instructions --
until a debt ceiling measure has been enacted. Furthermore,
beginning November 15, 1985, you should not certify any vouchers
for payment to the Treasury or Federal disbursing offices. This,
of course, means that no government payroll checks may be issued
on November 15th.
2. Grants. Similarly, you should delay further payments to
organizations aand institutions under grant agreements --
including State and local governments, and non-profit
institutions.
3. New contracts. Unless necessary to continue services to
protect life and property or provide for the national security
(including the conduct of foreign relations essential to the
national security), your agency should not enter into any new
contracts until a debt ceiling measure has been enacted. In
determining the character of any proposed activity or contract,
you should refer to your contingency plans covering an
appropriations hiatus to decide which programs are considered
necessary to protect life and property. Where the answer is not
clear, no new obligation should be assumed unless approved by 0MB
or until the situation has been resolved by enactment of a new
debt ceiling.
4. Hiring. Your agency must not hire any new personnel
until a debt ceiling measure has been enacted.
5. Instructions to current employees. Nothwithstanding the
failure of Congress to adopt a debt ceiling measure, the public
expects that its government will continue to function. As noted
previously, you should continue operations. Thus, you should
tell your employees they are expected to continue to report for
work each day in the ordinary fashion, but a liberal policy may
be adopted for granting annual leave to persons not deemed to be
performing essential functions.
6. Lawsuits. If you or your agency are sued as a result of
the actions a en pursuant to the President's action or because
of the non-payment of checks outstanding, you should immediately
notify the Department of Justice c/o Dennis Lindner, Civil
Division (telephone: 202-633-3314 or 3301).
7. Further guidance and questions. As noted by earlier
communica on, you or your representative are invited to a
meeting to be held today at 10:00 A.M. In Room 450 of the Old
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Executive Office Building for the purpose of providing further
instructions on what you should do during the debt ceiling
impasse and to answer any questions you may have.
III. Congress Has Not Enacted a Continuing Resolution or
Appropriat ons Act for Your Agency, Nor Has nacte an
Increase n e Debt Ceiling
In this most unusual situation, where Congress fails to enact
appropriations legislation and fails to raise the debt ceiling,
you must follow the procedures listed in both Sections I and II
of this memorandum. In other words, you must not make any
unnecessary financial commitments on behalf of your agency, and
you must begin the orderly closing down of your agency's
operations. More specific instructions will be provided in
writing and at the meeting mentioned above.
Within the guidance established by this memorandum, you
should make determinations that are necessary to operate your
agency during an appropriations and debt ceiling hiatus, and to
do so pursuant to normal agency processes for the resolution of
issues of law and policy. Again, questions that cannot be
determined by your agency should be addressed to your OMB budget
examiner. All unresolved questions relating to the construction
of the Antideficiency Act should be referred to the Office of
Legal Counsel at the Department of Justice.
I thank you for your cooperation in preparing for an event we
all hope and pray will be avoided.
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. MW
.vovember 17, 1981
P:s+`IOR?- O 4 FOR HEAL15 Q? EXF)CtJTIVE DUVM* 3AS At AGFIVCIFS
FROM: David A. Stockman
SUBJECT: Agency Operations in the Absence of Appragriations
Public Law 97-51, the continuing Resolution enacted by the Congress an September
30, 1981 to?ptovide for appropriations for all Executive and Judicial branch
accounts, will. expire."on-midnight Friday, November 20. No regular
.appropriations bills for Fiscal Year 1982 have been submitted to the President
during the period of the Continuing Resolution, and the House of Rp esentatives
and Senate are presently considering widely divergent Second Continuing
Resolutions. Tnere is, therefore,. a possibility that no appropriatio
ns will be
enacted as of tbverrber 21.
Under the circumstances, you should begin orderly planning to deal with this
possibility.
Q^'S Bulletin 80-14, dated August 28, 1980, requires all agencies to maintain
contingency plans to deal with the eventuality of an appropriations hiatus.
Additionally, the opinion of the Attorney General dated January 16, 1931,
attached, remains in effect.
Exa^+ples of excepted activities were developed %ben the Executive Breath last
faced the possibility of an apprioriations hiatus, and '0:ere sent to agencies by
former ONd Director Janes PScIntyre on September 30, 1980. They are:
Beginning [November 21, 19811, agencies may continue activities otherwise
authorized by law, those that protect life and property and those
necessary to Begin phasedown of other activities. Primary examples of
activities agencies may continue are those which may be found under
applicable statutes to:
1. Provide for the national security, including the conduct of foreign
relations essential to the national security or the safety of life and
property.
2. Provide for benefit payments and the performance of contract
obligations under no-year or multi-year or other funds remaining
available for those purposes.
3. Conduct essential activities to the extent that they protect life and
property, including:
a. Medical care of inpatients and emergency outpatient ogre;
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b. Activities essential to ensure eontixiu public health and safety,
Including safe use of food and drugs and safe use of hazardous
materials;
e. The continuance of air traffic control and other transportation
safety functions and the protection of transport property;
d. aorder and coastal protection and surveillance;
e. Protection of Federal lands, b'lldixgs, waterways, equipment and
other property owned by the United States;
f. Care of prisoners and other persons in the custody of the United
States,
g. -taw enforeenent and criminal investigations;
h. Detergency and disaster assistance;
I. Activities essential to the preservation of the essential elements
of the money and banking systea of the united States, including
sorrowing and tax collection activities of the Treasury;
J. Activities that ensure production of power and maintenance of the
power districution systaa; and
x. Activities necessary to aaintain protection of research property.
You should maintain the staff and support services necessary to continue
these essential functions.
In addition, the following policies will be in effect in the event of a November
21 appropriations hiatus:
1. All employees performing non-excepted activities defined by this memorandum
and by the Attorney General's opinion of January 16, 19d1, are permitted to
perform no'snvices other than those involved in the orderly suspension of
agency operations.
2. With regard to non-excepted agency activities and agency personnel
performing them, particular attention should be paid to those provisions of the
Antideficiency Act that do not permit agency acceptance of voluntary, i.e.
non-excepted services. Accordingly, In the event that the appropriations hiatus
continues measurably beyond Monday, November 23, 1981, agency needs will be
required to maloe oeterminations as to whether non-excepted personnel have
completed all phasedownn tasks incident to the orderly suspension of agency
operations. At such time, the services of those employees can no longer be
accepted in the absence of appropriations.
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3. This memorandum is principally directed towards the ability of agencies to
obligate funds in the absence of appropriations. It should be wade clear that,
ur a appropriations-hiatus, funds may not be available to permit agency
payment of obligations. All personnel performing excepted services, including
activities incident to the orderly suspension of agency operations, should be
assured that the United States will not contest its legal obligation to mace
payment for such services, even in the absence of appropriations.
4. Agencies are requested to report promptly to 01-0 staff era normally handle
their budgets any major disruptions of activities or services that may or will
imminently result from the absence of appropriations.
5. Within the guidance established by the Attorney General's opinion of January
tf~, 1981, and this menorandL n, agency heads are to mane such determinations as
are necessary to operate. their agencies during an appropriations hiatus, and to
ad so pursuant to. normal agency processes for the resolution of issues of law
and policy. Questions that cannot be determined by an agency should be
addressed to Q Td. All unresolved questions relative to the construction of the
Antideficiency Act will be jointly referred to the Office of Legal Counsel of
the Department of Justice.
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
Bulletin No. 80-14
August 28, 1980
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Shutdown of Agency Operations Upon Failure by the
Congress to Enact Appropriations
1. Purpose and Coverage. This Bulletin provides policy
guidance an instructions. for actions to be taken by
.Executive Branch agencies when failure by the Congress to
enact either regular appropriations, a continuing resolution,
or needed supplementals results in interruption of fund
availability. This" Bulletin does not apply to specific
appropriations action by the Congress to deny program
funding. In the instance of partial funding interruptions,
e.g., failure of the Congress . to act on program
supplementals, special procedures beyond those outlined in
this Bulletin may be warranted. In such cases, OMB
representatives responsible for the affected agency's budget
estimates should be consulted.
2. Background. The Attorney General issued an opinion on
April 25, 1980 that the language and legislative history of
the Antideficiency Act (31 USC 665) unambiguously prohibits
agency officials from incurring obligations in the absence of
appropriations. The essential elements of the Attorney
General's advice are that:
a. In the absence of new appropriations, Federal
officers may incur no obligations that cannot lawfully be
funded from prior appropriations unless such obligations are
otherwise authorized by law.
b. Under authority of the Antideficiency Act, Federal
officers may incur obligations as necessary for orderly
termination of an agency's functions, but no funds may be
disbursed.
c. Under its enforcement responsibilities, the Depart-
ment of Justice will take actions to apply the criminal
provisions of the Antideficiency Act in the future when
violations of the Act are alleged under such circumstances.
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3. Actions required. Agencies faced with funding
interrupt ons must take steps to forestall interruptions in
operations and assure that they are in a position to limit
their activities to those directly related to orderly
shutdown of the agency.
a. Reallocation of funds prior to shutdown. Prior to
initiation of orderly shutdown activities, agency heads will
limit their operations to minimum essential activities and
will reallocate to the extent permitted by law all available
funds in order to forestall the fund interruption date as
long as possible. Reallocation of funds will be made subject
to the following requirements:
(1) Reallocation below the appropriation and fund
account level will be accomplished by telephonic revision to
allotments and suballotments (such revisions will be
documented and immediately reflected in formal written
changes to the regular allotment/suballotment documents).
1 ) Agencies that have specific statutory authority
-to reallocate and transfer funds between appropriation and/or
fund acbounts will effect the transfers in accordance with
current standard fiscal. procedures. Such transfers generally
will be effected on Standard Form (SF) 1151, 'Nonexpenditure
Transfer of Funds' (see Ora Circular No. A-11p section 21.2,
for a description of when expenditure transfers might be
required). This Bulletin does not convey new authority to
transfer funds.
(3) For this purpose adjustment to amounts contained
in OMB apportionments may be made without submission of a
reapportionment request.
b. Orderly shutdown activities. When all available
funds, inc u ing rea otte rea ocated funds, are exhausted,
orderly shutdown activities must begin. Each agency head
must determine the specific actions that will be taken;
however, all actions must contribute to orderly shutdown of
the agency and give primary consideration to protecting life
and safeguarding Government property and records. Such
actions should be accomplished in a way that will facilitate
reactivation when funds are made available. Agency heads
will notify OMB, OPM, Treasury, and GSA immediately when
shutdown activities are being initiated. These central
agencies will be responsible for notifying their own regional
offices, except as noted in paragraph (3).
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3
(1) Appropriations and funds. Agency heads will
limit obligations incurred to t ose needed to maintain the
minimum level of essential activities necessary to protect
life and property, to process the necessary personnel
actions, to process the personnel payroll for the periods
prior to fund interruption; and to provide for orderly
transfer of custody of property and records to the General
Services Administration (GSA) and the Office of Personnel
Management (OPM) for disposition.
(2) Personnel and personnel records. Necessary
personnel actions will be taken to release employees in
accordance with applicable law and office of Personnel
Management's regulations. Preparation of employee notices of
furlough and processing of personnel and pay records in
connection with furlough actions 'are essential shutdown
acl:iv itees. Agencies should plan for these functions to be
performed by employees who are retained for orderly
termination of agency activities, as long as those employees
are. available. As soon as agencies determine the date after
which they will no longer be able to maintain custody of
personnel records, they should notify the Office of Personnel
Management to arrange for orderly transfer of custody of the
personnel records to OPM and GSA, jointly, for caretaking and
protection of the records. If necessary to protect the
interests of individual employees during the period when all
employees of the agencies are on furlough, OPM will provide
access to the appropriate personnel records to retrieve
information and/or process personnel actions, e.g.,
separation-transfer of an employee who secures employment in
another agency. Guidance for planning such actions and
relevant questions and answers as to employees' benefits will
be provided separately by OPM.
(3) Property and nonpersonnel records. Inventories
of property and records will be made to assure protection of
the Government's interests and the claims of affected private
entities and individuals (including vendors and beneficiaries
of Federal programs). Upon determination that agency funds
are no longer available, agency officials should contact the
appropriate Regional Administrators, General Services
Administration, for assistance in determining the disposition
of agency records, real and personal property, ahd
outstanding requisitions, contracts, grants and related
items. Detailed guidance on such matters are contained in:
41 CFR 101-11.4; Dispositions of records.
41 CFR 101-43 and 101-47; Disposition of personal
property and real property.
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-- FPMR 101-36.5, 101-37.203(c), and 101-37.307-1t
Dispositions of automatic data processing,
communications, and telephone equipment.
-- GSA motor pool accounting and record system
operations guide; Disposition of motor vehicles.
The transfer to the General Services Administration of
property and records shall not be made until 30 days have
elapsed from the start of shutdown activities and then only
after a determination is made that the funding hiatus will
continue indefinitely.
C. Planning. Agency heads should develop plans for an
orderly shutdown that reflect the policy and guidance
provided in this Bulletin. Such plans necessarily will be
tailored to each agency's needs in recognition of the unique
nature--of ---its funding sources, missions, and authorities.
While every agency-should have a plan, the scope and detail
of the 'plan -.should be commensurate with the likelihood that
shutdown.,_will be necessary and with the complexity of
shutting down the agency.
4. Effective dates. The. instructions in this Bulletin are
effective immediately and remain in effect until rescinded.
5. Inquiries. Budgetary questions should'be directed to the
OMB representatives responsible for review of each agency's
budget estimates.
Fiscal procedures questions should be directed to the
Division of Government Accounts and Reports, Bureau of
Government Financial Operations, Department of the Treasury,
Treasury Annex #1, Washington, D.C. 20226 (Telephone:
(202) 566-5844).
Agency officials may obtain additional information and
technical assistance on personnel matters by contacting their
agency officer at the Office of Personnel Management.
Property and nonpersonnel records disposition questions
should be directed to Office of Plans, Programs, and
Financial Management, General Services Administration,
96es T. McIntyre, Jr.
rector
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