BHL Bogen

BHL Bogen
BridgehouseLaw LLP - Your Business Law Firm

Thursday, February 28, 2013

Impending Sequester Cuts in North and South Carolina

(c) freedigitalphotos.net
On February 24th, 2013 the White House released a state-by-state report of $85 billion in automatic, across-the-board cuts to the federal budget that would go into effect on March 1st and run through the end of September if Congress and President Barack Obama can’t reach a deal to reduce spending by the end of this week. President Obama is hoping that this list will put pressure on Congress to come up with an agreement that will further his goal to reduce the budget by $1.2 trillion over the next decade.

President Obama has blamed the impending cuts on the intransigence of the Republicans and their unwillingness to raise taxes on the wealthy. GOP leaders in turn noted that the sequester was originally proposed by the White House. 

For North Carolina, new cuts would be particularly painful; economic recovery has been among the slowest in the nation, with official unemployment at 9.2% and official poverty at 17.5%.

S.C. Treasurer Curtis Loftis said Monday that South Carolina might be among the three to five states hit the hardest if one factors in both military and social spending in the state.


According to The White House, the Sequester would cause cuts to education ($41.8 million) and an array of public services in NC. The military sector, of huge importance in the state, would lose $140 million and 22,000 of its employees would be furloughed.

Here are some key points from The White House memo on sequester cuts in North and South Carolina:

North Carolina:

Education
  • NC will lose more than $25 million in funding for primary and secondary education. The state will also lose $16.8 million for educating disabled children.
 Environment
  • NC will lose $5 million in funding for environmental protection, including air, water and wildlife programs.
Defense
  • 22,000 Department of Defense employees will be furloughed.
  • Army operations will be cut by $136 million, Air Force operations by $5 million.
Public Safety
  • About $401,000 will be cut in Justice Assistance Grants that support law enforcement, prosecution and courts, crime prevention and education, corrections and community corrections, drug treatment and enforcement, and crime victim and witness initiatives.
Unemployment
  • Job Search Assistance will lose about $83,000 in funding.
Public Health
  • Nutrition assistance for the elderly will be cut by $1.5 million.
  • Funding for vaccinations will be cut by about $243,000.
  • N.C.’s funding for public health threat response will be cut by $911,000.
  • $1,980,000 in grants to help prevent and treat substance abuse will be cut.
South Carolina:

Education

  • SC will lose $12.5 million in funding for primary and secondary education. The state would also lose $8.6 million for educating disabled children.
Environment
  • SC will lose more than $2 million in funding for environmental protection, including air, water and wildlife programs.
Defense
  • 11,000 civilian Department of Defense employees will be furloughed.
  • Army base operation funding will be cut by $62 million.
  • Air Force operations in South Carolina will be cut by $5 million.
Public Safety
  • About $278,000 will be cut in Justice Assistance Grants that support law enforcement, prosecution and courts, crime prevention and education, corrections and community corrections, drug treatment and enforcement, and crime victim and witness initiatives.
Unemployment
  • Job Search Assistance will lose about $550,000 in funding.
Public Health
  • Nutrition assistance for the elderly will be cut by $791,000.
  • Funding for vaccinations will be cut by about $127,000.
  • N.C.’s funding for public health threat response will be cut by $442,000.
  • $1 million in grants to help prevent and treat substance abuse will be cut.
Click here for the White House memo on sequester cuts in North Carolina.
Click here for the White House Memo on sequester cuts in South Carolina.

Author: Heidi Lind, International Group Coordinator, Charlotte




No comments: