FORT WAYNE, Ind. (www.incnow.tv) - "Sequestration" has become the latest buzz word, like “fiscal cliff” towards the end of 2012 and early 2013, being thrown around by political and financial experts, but what does it really mean?
What the sequestration is are automatic spending cuts of roughly $85 billion to be made this year. About half those cuts would impact the civilian employees of the Defense Department while the other half would be spread across all the other government entities.
The important thing to keep in mind are that these are cuts in the amount of increase the budgets for these departments, which amount to about 2 cents of every dollar the government spends.
These cuts were suggested by President Obama and were put in place with the Budget Control Act of 2011. That was put in place in an attempt to cut the deficit by roughly $1.5 trillion dollars over a ten year period.
Unless Congress reaches an agreement on a different plan, these cuts will take effect March 1st.
Cuts we’ll feel at a local level include a number of areas. Places like education, where funding for primary and secondary schooling will be cut. Or air travel with cuts in the number of air traffic controllers and TSA Agents could lead to major headaches and delays at the airport. Health Care would be another victim where funding for childhood vaccinations like measles, mumps, and influenza would get reduced by almost $200,000.
What’s the easiest way to avoid this? Congress needs to come up with a new plan on how, and where, cuts will come from to reduce the deficit. As it sits now the cuts have been outlined and will automatically go into effect once the March 1st deadline hits.
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