E. Daniels, Jr.
||Revised FY 2003
Funding Guidance and Freedom to Manage Initiatives
By previous correspondence,
the FY 2003 funding guidance for your agency was the FY 2003 column
included in the President's FY 2002 Budget Request. Because of the
changes in the economic and budget outlook since the President submitted
his budget, we now need to develop options to hold spending below
these levels, excluding the Department of Defense. In addition to
options OMB may generate, I ask you to identify less effective programs
or lower priority areas for possible reductions. Your target is
five percent of the FY 2003 discretionary amount requested by the
President for your agency in the FY 2002 budget.
Presidential or other
new policy initiatives that involve greater spending, including
legislative, regulatory, and management proposals, need to be given
priority treatment in your budget request but must be fully offset
within your agency's totals. Aggressive employment of the President's
Management Reform Agenda in the areas of competitive sourcing and
E-gov initiatives can help achieve these potential targets. Your
initial budget submission to OMB is scheduled to be submitted today.
Recognizing that agencies may need additional time to develop the
alternative budget proposals based on these changed funding levels,
the due date for submitting the alternative is September 28, 2001.
To help you get the
maximum impact from the resources available to you, the Administration
has assembled a "Freedom to Manage" initiative to eliminate statutory
impediments to effective management of government programs and activities
in your agency. Legislation will be proposed to provide for expedited
Congressional review and termination of such statutory barriers.
Repeated requests to
the President's Management Council for these examples have not yet
yielded a sufficient list to illustrate the need for reform. By
September 17, 2001, please identify to OMB a sampling of the
statutory requirements and constraints that your department/agency
feels should be removed. Our intent is to conduct a comprehensive
review of such provisions concurrent with the fiscal year 2003 budget
development. More detailed guidance on this request will be distributed
soon through your OMB Resource Management Office.
Questions about this
memorandum should be directed to your OMB Resource Management Office.
Thank you for your assistance in putting together the President's
FY 2003 Budget.