Across-the-board federal spending cuts would hurt the State Budget as well as local governments
WHO: Budget & Tax Center, with guests Rep. Rick Glazier and Sen. Don Davis
WHAT: Telepresser to address impending federal sequestration spending cuts and their effects on state and local government budgets
WHEN: Wednesday, February 20, 12:00 p.m.
WHERE: Call-in information: 866-906-9888, access code: 8212534
RALEIGH (February 19, 2013) – The Budget & Tax Center, a project of the North Carolina Justice Center, will host a telepresser event on Wednesday, February 20, to announce a letter from state legislators in both houses of the General Assembly to the state’s Congressional delegation, urging repeal of the $1.2 trillion in so-called sequestration spending cuts currently set to begin on March 1. If allowed to go forward, defense and domestic federal programs would receive an across-the-board cut of $120 billion in 2013 alone—cuts that would have serious consequences for the North Carolina state budget and local governments alike.
Legislators will urge their Congressional representatives to repeal sequestration and replace this misguided policy with a balanced approach to deficit reduction that includes at least one dollar in new revenues for each dollar in spending cuts. Taking such a balanced approach to federal deficit reduction will also help protect the state budget, which relies on federal domestic appropriations for more than 35 percent of the state’s total budget.
If current levels of sequestration go into effect, North Carolina will see significant reductions in the provision of key services. The cuts to Pentagon spending are estimated to cost North Carolina at least $1.5 billion in defense contracts and as much as 11,000 in job losses, with non-defense cuts expected to harm the state’s economy by eliminating almost 1 million jobs. In addition, the non-defense cuts would reduce the state’s Department of Health and Human Services budget by $35 million and education spending by $84 million.
“Any attempt to replace the sequester with spending cuts to these federal domestic programs will place significant fiscal stress on the state budget and will likely lead to even deeper cuts to state and local government spending on these critical investments,” the letter reads. “We respectfully urge your support for replacing sequestration with a balanced approach to deficit reduction that includes new revenues and protects North Carolina’s state budget.”
FOR MORE INFORMATION CONTACT: Allan Freyer, BTC Public Policy Analyst, email@example.com, 919.856.2151.