The Balanced Budget and Emergency Deficit Control Act of 1985, as amended, establishes deficit targets to lead to a balanced unified budget by fiscal year 1993. If the Office of Management and Budget projects a deficit in excess of the target amount plus $10 billion, the President must issue a sequester order to reduce budget resources sufficiently to reach the target deficit level. The fiscal year 1990 sequester reduced the Department of Education's budgetary resources by $266.1 million, or 1.1 percent of its $24.5 billion budget authority for the year. Department officials believe the sequester's overall impact was minimal. After the sequester, the Department's funding was 5.1 percent higher than in fiscal year 1989. The greatest negative impact was reported in two departmental accounts that experienced funding difficulties beyond those created by the sequester: Program Administration and Office for Civil Rights. (MLF)