Page:United States Statutes at Large Volume 124.djvu/42

 124 STAT. 16 PUBLIC LAW 111–139—FEB. 12, 2010 Representatives and the Senate. If the President issues a sequestra- tion order, the annual report shall contain, for each budget account to be sequestered, estimates of the baseline level of budgetary resources subject to sequestration, the amount of budgetary resources to be sequestered, and the outlay reductions that will occur in the budget year and the subsequent fiscal year because of that sequestration. SEC. 6. CALCULATING A SEQUESTRATION. (a) REDUCING NONEXEMPT BUDGETARY RESOURCES BY A UNI- FORM PERCENTAGE.— (1) IN GENERAL.—OMB shall calculate the uniform percent- age by which the budgetary resources of nonexempt direct spending programs are to be sequestered such that the outlay savings resulting from that sequestration, as calculated under subsection (b), shall offset the budget-year debit, if any, on the applicable PAYGO scorecard. If the uniform percentage calculated under the prior sentence exceeds 4 percent, the Medicare programs described in section 256(d) of BBEDCA shall be reduced by 4 percent and the uniform percentage by which the budgetary resources of all other nonexempt direct spending programs are to be sequestered shall be increased, as necessary, so that the sequestration of Medicare and of all other nonexempt direct spending programs together produce the required outlay savings. (2) PROGRAMS AND ACTIVITIES IN UNIFIED BUDGET ONLY.— Subject to the exemptions set forth in section 11, OMB shall determine the uniform percentage required under paragraph (1) with respect to programs and activities contained in the unified budget only. (b) OUTLAY SAVINGS.—In determining the amount by which a sequestration offsets a budget-year debit, OMB shall count— (1) the amount by which the sequestration in a crop year of crop support payments, pursuant to section 256(j) of BBEDCA, reduces outlays in the budget year and the subse- quent fiscal year; (2) the amount by which the sequestration of Medicare payments in the 12-month period following the sequestration order, pursuant to section 256(d) of BBEDCA, reduces outlays in the budget year and the subsequent fiscal year; and (3) the amount by which the sequestration in the budget year of the budgetary resources of other nonexempt mandatory programs reduces outlays in the budget year and in the subse- quent fiscal year. SEC. 7. ADJUSTMENT FOR CURRENT POLICIES. (a) PURPOSE.—The purpose of this section is to provide for adjustments of estimates of budgetary effects of PAYGO legislation for legislation affecting 4 areas of the budget— (1) payments made under section 1848 of the Social Secu- rity Act (referred to in this section as ‘‘Payment for Physicians’ Services’’); (2) the Estate and Gift Tax under subtitle B of the Internal Revenue Code of 1986; (3) the AMT; and (4) provisions of EGTRRA or JGTRRA that amended the Internal Revenue Code of 1986 (or provisions in later statutes 2 USC 936. Determination. 2 USC 935.