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Sequestration and California

by: Brian Leubitz

Mon Feb 25, 2013 at 10:31:11 AM PST

Federal budget fight puts thousands of jobs at risk

by Brian Leubitz

In case you haven't heard (and if so, congrats on that), the federal government is busy trying to make California's governance look smooth and easy.  The self-imposed reckless spending cuts across the board are scheduled to take effect on March 1, and right now a deal doesn't look set to happen anytime soon. Sens. Coburn and McCaskill said as much a few days ago. Kevin Drum outlines why a deal is unlikely by simply outlining the possible outcomes:

1) Eliminate the sequester entirely. Zero chance of Republicans agreeing to this.
2) Ditch the defense cuts, replace them with domestic cuts plus a tax increase. Zero chance of Republicans agreeing to this.
3) Ditch the defense cuts, double the domestic cuts. Zero chance of Democrats agreeing to this.
4) Ditch the defense cuts, keep the domestic cuts. Approximately zero chance of Democrats agreeing to this.
5) Kick the can down the road with some kind of small-ball deal. Possible, I guess.

There are, of course, some minor shades between these options, but the room for negotiating is slim indeed. While polls show a majority of Americans would blame the Republicans, that doesn't actually pay the bills and keep the lights on. While some argue that the cuts will weaken Republican resolve on their hard-line tax position, it is still a dangerous game. How dangerous here at home?

Well, the White House put out a report on how California will be hit by the cuts, and it isn't pretty. Here is a quick sampler:

  • Education cuts: California would lose nearly $90million, putting over 1,200 teaching and support jobs at risk.
  • Travel: Customs and homeland security resources would be drastically cut. Wait times at the bigger airports, like SFO and LAX could increase by over 90 minutes.
  • Health: Several programs would take big cuts. Vaccines for children would lose over a million dollars, meaning 15,000 children wouldn't be vaccinated. Substance abuse programs would lose $12.4 for treatment, closing off that option for 9,400 patients. And HIV testing would lose $2million, meaning almost 50,000 fewer tests.
  • Of course, that is just a smattering of the cuts, they also extend to job training and placement, child care, and environmental cuts. Yet there has been little sign of movement from the hard-line GOP caucus in the House, and the deadline is just a few days away.

    Brian Leubitz :: Sequestration and California
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    NICE D talking points (2.00 / 2)
    Did this come straight from the Obama Administration or did it get routed through the CA Dem hacks in Sacramento?

    Even with the DOOMSDAYSEQUESTER that will end the world, spending will be higher than last year.

    Just curious (2.67 / 3)
    When did Republicans start worrying about deficits ??

    Republicans didn't worry about deficits under GW Bush !!
    Two Phoney wars, a new Medicare benefit AND Tax Cuts for the Rich !!

    Under GW Bush and a Republican majority Congress
    WHY are Conservative NOW so worried by deficits ??

    in IRAQ !!

    It was ALL A LIE to get us into WAR

    [ Parent ]
    Of course the Republicans are spending whores... (8.00 / 1)
    ...But you didn't really address his complaint did you?  Spending is going up and there is no form of tax increases/spending cuts anywhere on the table to prevent the monetary inflation needed to support said spending.

    Unfortunately math is anathema to ideologues.  Even with an increase in taxes you will not see a corresponding percentage increase in tax revenue.  The curve exists whether you agree with the point at which Laffer places it or not.

    Now if you want to discuss tariffs and the restoration of the US manufacturing base you might be able to get substantial enough revenue increases to matter, but BOTH parties serve the globalist corporate agenda so there is ZERO chance of that happening.  We are headed for another crash after Housing Bubble 2.0 pops next year.  The resulting plunge in tax revenues will mean a significant decrease in outlays.  Now if contracts are renegotiated and the .gov workers agree to MUCH NEEDED cuts in wages/benefits services can be maintained.

    This is reality.  Deal with it.

    Hi. I'm Charles.  I worked my way from homelessness to a business owner.  Be what you have it in you to be!

    [ Parent ]
    Laffer Curve (0.00 / 0)
    Usually, it's Democrats who mention the Laffer Curve
    That was the curve that was gonna make it possible for Reagan to spend like a sailor and STILL 'Blanace the Budget'

    How'd that work out ??

    You don't really see/hear of Arthur Laffer, anymore
    I think he's in the Witness Protection Program

    I will agree that we're in a heckuva jam
    But, it was Reagan, Bush I and Bush II who really ran up the deficit
    (no conservative complaints back then, huh?)
    Clinton actually accomplished something with holding down the deficit

    I do agree that we have to cut spending
    and some of the cuts have to be in social spending
    But, taxes aren't a dirty word for me
    And I think corporations and the rich are under-taxed

    I don't expect Obama to do anything about that, though

    [ Parent ]
    Austerity will just involve (0.00 / 0)
    More and more and more cuts, since for every person laid off, incoming taxes go down, yet people now get unemployment insurance, so more debt is created cause less taxes are coming in after people get laid off, so to correct that, conservatives say, "laying more people off will surely fix that little problem", problem is that fixes nothing, that only creates more of the same problem, less tax money coming in, so austerity simply does not work, austerity hurts the economy, spending helps the economy, everyones spending helps the economy as everyone is interconnected to each other in the economy, as the saying goes "No Man is an island" is quite correct...

    [ Parent ]
    Spending is down (0.00 / 0)
    Spending as a percentage of GDP is the only meaningful metric. And that is down. Has been for years. But don't let the facts get in the way of your freakout.  

    [ Parent ]
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