PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-591 "(4) Except as otherwise provided, obligations in sequestered accounts shall be reduced only in the fiscal year in which a sequester occurs. "(5) If an automatic spending increase is sequestered, the increase (in the applicable index) that was disregarded as a result of that sequestration shall not be taken into account in any subsequent fiscal year. "(6) Except as otherwise provided, sequestration in trust and special fund accounts for which obligations are indefinite shall be taken in a manner to ensure that obligations in the fiscal year of a sequestration are reduced, from the level that would actually have occurred, by the applicable sequestration percentage.". (3) Section 256 of such Act is amended by striking "section 2 USC 906. 252" each place it appears and by inserting "section 254". (4) Section 256(c) (as redesignated) of such Act is amended by inserting after the first sentence the following: "No State's matching payments from the Federal Government for foster care maintenance payments or for adoption assistance maintenance payments may be reduced by a percentage exceeding the applicable domestic sequestration percentage.". (5) Section 256(d)(l) of such Act is amended to read as follows: " (1) CALCULATION OF REDUCTION IN INDIVIDUAL PAYMENT AMOUNTS. — To achieve the total percentage reduction in those programs required by sections 252 and 253, and notwithstanding section 710 of the Social Security Act, OMB shall determine, and the applicable Presidential order under section 254 shall implement, the percentage reduction that shall apply to pay- ments under the health insurance programs under title XVIII of the Social Security Act for services furnished after the order is issued, such that the reduction made in payments under that order shall achieve the required total percentage reduction in those payments for that fiscal year as determined on a 12-month bdsis (6) Section 256(d)(2)(C) of such Act is repealed. (e) THE BASELINE. — (1) Section 257 of such Act is amended to read 2 USC 907. as follows: "SEC. 257. THE BASELINE. "(a) IN GENERAL.—For any budget year, the baseline refers to a projection of current-year levels of new budget authority, outlays, revenues, and the surplus or deficit into the budget year and the outyears based on laws enacted through the applicable date. "(b) DIRECT SPENDING AND RECEIPTS.— For the budget year and each outyear, the baseline shall be calculated using the following assumptions: "(1) IN GENERAL. —Laws providing or creating direct spending / and receipts are assumed to operate in the manner specified in / those laws for each such year and funding for entitlement / authority is assumed to be adequate to make all payments / required by those laws. / "(2) EXCEPTIONS.— (A) No program with estimated current- / year outlays greater than $50 million shall be assumed to expire in the budget year or outyears. "(B) The increase for vetersuis' compensation for a fiscal year is assumed to be the same as that required by law for veterans'
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