Remember the sequester? It's still here...

The austerity budget cuts known as federal budget sequestration came about last year as a result of the inability of Congress, and of the bipartisan Super Committee, to reach a deficit-decreasing budget compromise. There was much outrage on March 1 among both lawmakers and the publicwhen sequestration went into effect. But when the sky didn't fall, and economic indicators continued their slow climb, people stopped paying attention.  One of the few exceptions was the kerfuffle in April over the air traffic controller furlough and resulting severe flight delays, which was quickly nipped in the bud when Congress passed a bill allowing the FAA to keep air traffic controllers on the job, coincidentally just in time to prevent lawmakers from dealing with flight delays as they flew home from Washington. 

Otherwise, sequestration has continued, albeit with little fanfare.  Many people assume that because government operations have not been affected in a way visible to them, the cuts are no big deal.  But that is far from the case. On July 8, 650,000 civilian employees of the Department of Defense had their first of 11 furlough days this year.  This is not only a hardship for the employees losing pay, but potentially also for Defense missions, which have to continue even with reduced support. Across the entire Federal workforce, approximately one-third of employees will be furloughed an average of 13 days through September.  And it's not just the employees themselves who are adversely affected.  The people who rely on them for business, such as cab drivers and restaurant workers, will also take a hit, with fewer people going into work.

 

In addition to the furloughs, the sequester cuts 5% from the operating budgets of federal agencies, as well as 2% from Medicare provider payments. Two percent may seem like a small amount, but as an example, it will cost the Mayo Clinic $47 million dollars a year, which is a significant amount when it comes to research and and care.  Although Medicaid and food stamps are exempt from the cuts, Head Start, Meals on Wheels, and unemployment benefits are not.  The 5% cut in Meals on Wheels has reduced the number of meals served daily in Contra Costa County from 1500 to 1300.  The 200 seniors who will no longer recieve meal delivery certainly think sequestration is a big deal, and that is in just one county. 

What is Congress doing towards reaching a compromise that would end sequestration?  Well, not a whole lot. Budget negotiations to fund the federal government beyond September will begin soon, and members of both parties have dug in their heels.  Some Republicans have refused to vote for any budget that includes any funding for the Affordable Care Act, and some Democrats say they will not vote for a budget unless it replaces the sequester cuts with less drastic cuts.  If a compromise cannot be reached by September 30, the result will be a federal government shutdown, the likes of which we haven't seen since 1995, and which would make sequestration feel like a day at the park. 

Additionally, the sequestration plan calls for the cuts to be divided equally between defense and non-defense spending.  However, some Republicans are pushing to repeal the defense spending cuts, which would not decrease the dollar amount of the sequester cuts, but would put the entire burden on non-defense spending.  President Obama has made it clear that he will not accept such a shift. Oh, and let's not forget about the debt ceiling.  Some Republicans are saying they will not vote to raise the debt limit unless the Affordable Care Act is repealed, or unless even more draconian spending cuts than the current sequester are passed.  

So the sequester continues, and although it isn't making headlines at the moment (even though it is a headline in bold type for hundreds of thousands of Americans directly affected by it), it will be back in the spotlight very soon as Congress begins the 2014 budget battle.  And it won't be pretty.