This is correct, league wide the cash spent has to be 99% of the salary cap of 120 million and some change over '11 & '12 (I take this last part to mean between '11 and '12, because in '12 season this drops to 95% of the cap). And because it's a soft cap (meaning some teams can spend up to 126 million and change due to some options they have for bonuses and what not) some teams like the Bengals don't have to spend as much because most others will spend at or over it. In '13 it goes team to team at 89%. That is it in a nutshell.
This is a tough pill for me to swallow right now.