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OMB To Hold Sequestration Talks With Agencies

The Office of Management and Budget has issued a memorandum to heads of federal departments and agencies on potential effects and procedures if sequestration occurs.

Jeff Zients, acting OMB director, wrote in the Tuesday memo the office will engage department and agency personnel in discussions regarding fiscal issues within the next months.

Discussion topics will include agency accounts and programs that are exempt from sequestration cuts or could be exempt.

Agencies should prepare for those talks based on their general counsels’ analyses of how the Budget Control Act apply to a particular issue involving one agency, Zients wrote.

According to the memo, calculations of sequestration cuts can only occur once fiscal year 2013 funds are known.

Shortly before any sequestration order comes down, Zients writes OMB will collect information from agencies on sequestrable amounts and unobligated funds.

Using those figures, OMB will then calculate percentages to cut.

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