Politics Wires

Not everyone will feel impact of automatic federal budget cuts

 

McClatchy Newspapers

Don’t be too frightened by the doomsday talk about the automatic spending cuts that look more and more likely to kick in next week.

There would be pain, to be sure, with some federal workers taking unpaid furloughs, some programs cut and as many as 700,000 jobs nationwide left uncreated.

But programs that touch millions who rely on government checks most, including Social Security recipients and the poor, will not be affected. For the rest, the impact of cutting $85 billion from federal spending, called a sequester, won’t be felt all at once and in some cases may not kick in for some time. And there may even be escape clauses: If the cuts provoke a huge public outcry, a Congress where most incumbents are seeking re-election next year can undo at least some of the damage.

Even the political fallout is hard to calculate. If the economy keeps growing, those lawmakers next year could point to the sequester as a boost. After all, constituents want the nation’s debt reduced, a sizable minority is for proceeding with the cuts, and people are tired of Washington fumbling and delaying efforts to take serious steps.

So despite the White House’s warning that chronic suffering is nigh, the impact will not be universal and depends on the agency, the program and the politics.

“The sequester affects different programs differently,” said Sharon Parrott, a vice president at the Center on Budget and Policy Priorities, a budget research group.

Prospects for avoiding the March 1 sequestration are dimming. The Democratic-run Senate plans to vote on its partisan alternative next week, a plan that would reduce the amount of spending reductions while raising more revenue. It has no chance of winning approval in the Republican-run House of Representatives.

The impasse probably means the cuts will take effect, and many Republicans have signaled they’re perfectly willing to let that happen.

What’s coming first, though, is a week of more chilling scenarios and finger-pointing. But assessing the true impact depends on the answers to questions that right now are difficult to resolve with any precision:

– How and when will people feel the changes?

Macroeconomic Advisers, a St. Louis-based research firm, paints a grim, but not too grim, picture. By the end of next year, it estimates, about 700,000 fewer jobs would have been created than might have been expected.

But, the analysis added, “The macroeconomic impact of the sequestration is not catastrophic.”

Big chunks of the budget are exempt, notably Social Security, Medicaid, veterans benefits, the Children’s Health Insurance Program, Pell grants for students, and a host of programs that help the poor. Medicare spending is not subject to the entire reduction.

The cuts, which amount to about 2.4 percent of roughly $3.55 trillion in total federal spending, are focused on a smaller part of the budget. About half come from defense, which would be trimmed about 13 percent, and half from some domestic programs, which would lose 9 percent of funding. There are lots of variables. Some agencies are said to have saved money in recent months, thereby easing the potential impact, and timing of the cuts varies.

Some big education cuts would take effect in the school year beginning this fall, though hiring decisions will be made starting in the spring. Community development and public housing funds would drop, cuts that would be felt throughout the year. Average wait times to get through airport security could go up about 50 percent.

Email:dlightman@mcclatchydc.com;Twitter:@lightmandavid

Read more Politics Wires stories from the Miami Herald

  • Pentagon wants $450M for Guantanamo prison

    The Pentagon wants more than $450 million for maintaining and upgrading the Guantanamo Bay prison that President Barack Obama wants to close.

  • McKeon: State didn't ask for help before Benghazi

    A senior House Republican says U.S. military forces weren't in a position to help those under attack at a U.S. diplomatic post in Libya because the State Department had failed to ask the Pentagon for help in securing the compound before the raid.

  •  

FILE - In this Dec. 14, 2012, file photo Arkansas State Treasurer Martha Shoffner at the Arkansas state Capitol in Little Rock, Ark. An affidavit filed Monday, May 20, 2013, in federal court alleges that Shoffner, arrested on an extortion charge, repeatedly took cash payments of at least $36,000, sometimes rolled up and hidden inside a pie box, from a broker who invested state money.

    Ark. treasurer resigns amid charges she took cash

    Arkansas' state treasurer has resigned after federal prosecutors accused her of taking cash payments from a broker who handled a large amount of the state's investment portfolio.

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Videos

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category