The White House Office of Management and Budget has issued memo M-11-30, Fiscal Year 2013 Budget Guidance to heads of federal departments and agencies asking for budgets for 2013 that are 5 and 10 percent below this year’s discretionary spending levels.
OMB Director Jack Lew provides additional comments in an OMB blog post: 2013 Budget Guidance.
“In light of the tight limits on discretionary spending starting in 2012, we asked agencies for budget submissions that provide options to support the President's commitment to cut waste and re-order priorities to achieve deficit reduction while investing in those areas critical to job creation and economic growth. To meet this goal, we asked agencies to provide budgets based on two scenarios: a 5 percent cut and a 10 percent cut from the 2011 enacted discretionary level.”
The memo also asks agencies to identify cost-saving mechanisms to increase efficiency and reduce duplication and to identify opportunities to spur economic growth and job creation.