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I have chosen to summarize a report from January of 2014. This report is entitled “2013 Statutory Pay as You Go Act Annual Report. The Pay as You Go Act (PAYGO) was enacted in 2010. It was meant to ensure that the federal government would not go any further into debt. Any increased spending on the part of the government (with certain exceptions) had to be offset by increased revenues or by cuts in other types of spending. The law required the Office of Management and Budget (OMB) to issue an annual report showing that the government had complied with the law in the past year.
According to this report, the government complied with the law. The report asserts that there were 21 laws passed in 2013 that had to be considered under PAYGO. Of these laws, nine resulted in important savings while the OMB said that the other twelve laws did not incur significant increases in government spending. This meant that the government had, overall, not increased the debt in any of the ways that PAYGO forbids. Because the government had not increased the debt, there was no need for the OMB to issue any sequestration order. That is, there was no need for the agency to forbid the spending of money that had already been appropriated. The report goes on to list the various laws and their effects. We can summarize this report by saying that OMB reports that PAYGO has been obeyed and no money needs to be sequestered.
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