Budget Counsel Reference Directory

Adjustments

Under budget law, various levels and amounts, limits and maximums, allocations and aggregates, may be set for any number of purposes. The one thing that they have in common is that they may change under certain circumstances. These are invariably defined as “adjustments” and take on very formal specific form, or more general and vaguely prescribed methods.

See also Cap Adjustments.

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Examples of Adjustments

Program Integrity Adjustments

Program integrity adjustments are cap adjustment, included in section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985. The two adjustments currently in law are for “Continuing Disability Reviews and Redeterminations“ (sec. 251(b)(2)(B)) and  “Health Care Fraud and Abuse Control” (sec. 251(b)(2)(C)). These are termed for the purpose of “program integrity” because the they are intended to keep reduce direct spending elsewhere in the

Interaction with the CBA

Discretionary spending is controlled through both statutory enforcement procedures and Congressional rules enforcement. The first is administered by the Office of Management and Budget (OMB) through sequestration enforcing the discretionary spending limits that are in force through fiscal year 2021. The second is through the annual budget resolution that sets allocations under section 302(a) (CBA) to the Congressional Appropriations Committees.

The term “cap adjustment” applies to changes to both the statutory limits and the Congressional allocations. The two can work independently: If the allocation is lower than the discretionary limits and observed, the total amount appropriated by Congress will simply be less than the limit and sequestration is avoided. In theory the spending limits are precisely that and any amount lower is acceptable. In practice, the “cap” has been seen as a floor, insofar as that amount will surely be spent, and the question becomes whether and by how much that limit will be exceeded. 

Under section 314(a) (CBA), the Budget Committees may adjust the allocations to the Appropriations Committees for any adjustment contained in section 251(b)(BBEDCA). Though it says “may” it is something they always do, but  does require the filing of paperwork to submit for the Congressional Record.

Cap Adjustments in Section 251 (BBEDCA)

The following are to the discretionary spending limits found in statute under section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985. Generally under section 314(a) the Congressional budget allocations set forth in the annual (if actually adopted) budget resolution are similarly adjusted. However, an exception occurs for emergency designated functions where an allocation adjustment is not made, but rather not counted in the first place.

1. Concepts and Definitions (sec. 251(b)(1));
2. Emergency Appropriations (sec. 251(b)(2)(A));
3. Overseas Contingency Operations/Global War on Terrorism (sec. 251(b)(2)(A));
4. Continuing Disability Reviews and Redeterminations (sec. 251(b)(2)(B));
5. Health Care Fraud and Abuse Control (sec. 251(b)(2)(C));
6. Disaster Funding (sec. 251(b)(2)(D));
7. Reemployment Services and Eligibility Assessments (sec. 251(b)(2)(E));
8. Wildfire Suppression (sec. 251(b)(2)(F)); and
9. Census Funding for 2020. (251(b)(2)(G)).

Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 2018: Analytical Perspectives (May 23, 2017), pp. 88-91.

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