Nov 25, 2011 7:00am

Automatic Budget Cuts Put Public Education, Health Care on the Line

Igty classroom cc 111123 wblog Automatic Budget Cuts Put Public Education, Health Care on the Line

                                                                                                       Image Credit: Getty Images

The partisan divide that doomed the congressional “supercommittee” threatens to trigger automatic spending cuts that would weigh heavily on public education, housing and other programs that Americans rely on daily.

Unless members of Congress come up with a budget solution, an automatic cut known as “sequester” will kick in for the fiscal year 2013, cutting about $1.2 trillion from the budget in 10 years. The sequester would reduce annual spending by $109 billion, starting Jan. 2, 2013. The cuts are divided equally between the Defense Department and social programs.

Two sectors where Americans are likely to see a direct negative impact are public education and public housing. The sequester would cut more than $3 billion cut from the Department of Education, and mean a more than $3.5 billion decline in funding for housing and urban development programs.

Less money would trickle down to states because of cuts, affecting people who have children in public schools and those who live in public housing. Much of the drop in the housing sector is in community development block grants, according to an analysis by the Federal Funds Information for States.

“The most significant impact really tends to flow more down to the local government level,” said Marcia Howard, executive director and executive editor of FFIS. “People will notice probably that education funding is affected, as is community development.”

Medicare, community and migrant health centers, and health services for American Indians would be trimmed by 2 percent. That amounts to $123 billion in a ten-year time period for Medicare alone. Most of the cuts would come from reducing the amount of reimbursements the federal government gives to health care providers, not directly from Medicare recipients. But it would make it more challenging for the elderly to find doctors, some experts say.

The Special Supplemental Nutrition Program for Women, Infants and Children would see a $600 million reduction. At a time when poverty and hunger are at a record high, many advocates say, the cuts are likely to be detrimental to thousands of families reliant on federal aid.

The sequester would also hamper the government’s ability to implement the Affordable Care Act by reducing the amount of money that’s needed to enact some programs.

Some of the most important parts of the health care law are set to go into effect after 2014, including expanded coverage for Medicaid, mandatory employer coverage and insurance exchanges, a marketplace in which people could shop for and compare insurance plans.

Entitlement programs such as Medicaid and Social Security, however, would remain sheltered, as would funding for veterans programs, income tax credits and food stamps. Funding for these safety net programs is considered mandatory and would not be affected by the sequester.

In a time of budget crisis, the sequester threatens to hamper the ability of states to provide key services in education, housing and health care. While the impact would vary from state to state, many have expressed concern about the ongoing uncertainty resulting from the breakdown of negotiations.

“The underlying situation is that state and local governments still aren’t back up to 2002 levels. And so it’s not going to be easy for them to go in and just say, ‘We’ll just plug this $3 million hole because they may not have $3 million,” Howard said. “There will, at least to some degree, be program contractions and layoffs for employees who are funded through these federal dollars.”

In the long run, a sequester might also end up costing the government more money. If projects have to be put off until the future, it would only delay cost increases, not end them. And it might be more expensive for the government to make purchases in the future.

Republican lawmakers are already calling for a move to end what they say would be devastating cuts to the Pentagon’s budget, although few have addressed cuts to social programs. But President Obama said Monday he will veto any such move, and has blamed Republicans for the stalemate. Obama argued that both sides should come together and find a mutual solution to debt reduction.

If history is a guide, Congress will likely intervene to stop or change the automatic budget cuts. There has been no sequester since fiscal year 1991. The last time it occurred, in fiscal year 1990, cuts were subsequently reduced by legislation.

Here is  more on the how the cuts would affect Medicare.

Here is more on how the cuts would affect defense spending.

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User Comments

Here’s my question: Why don’t all 12 members of the so-called “Super Committee” give back all of the money they were paid from us during the time they were supposed to be coming up with a real solution? It turns out all they did was nothing!

Posted by: mike | November 25, 2011, 7:38 am 7:38 am

Yes but they hit defense too. Everyone has skin in the game. Cuts must be made. Spending is becoming too large a percent of GDP for a healthy economy. Automatic cuts may be the only way to get these lovers of influence peddling to do what needs to be done.

Posted by: BCT | November 25, 2011, 7:55 am 7:55 am

I expect sometime in the future the US will undergo an Arab spring with the overthrow of our governement and replaced by a democracy run by average man/woman on the street not the pampered protected millionaires and corporate masters. Supremem court replaced by lawyers with common sense rulings and spirit of law not the minuate of wording.

Posted by: Just Sayin | November 25, 2011, 8:23 am 8:23 am

It won’t go through. Congress will cut sequester off at the knees and we’ll go on our merry way.

Posted by: newcountryman | November 25, 2011, 8:26 am 8:26 am

if your a true american. a patriot. please read the following.

read this. it is the golden key to ensure we secure our nation beyond partisan dispute.

ORIGIONAL 13th AMENDMENT. IT THE LAW OF THE LAND HIDDEN FROM US BY THESE SO CALLED REPRESENTATIVES. YET IF APPLIED WOULD PROVIDE A CHECK AND BALANCE BEYOND. ANY VOTE. ANY MOVEMENT. ANY LAWS. ITS ALREADY IN THE CONSTITION. ITS JUST BEEN COVERED IN DUST.

Posted by: THETIMEHASCOME | November 25, 2011, 8:47 am 8:47 am

Just Sayin – much as I wold love to throw the bums out, historically, your visions of overthrow quickly become Animal Farm. Truly valuing the individual freedom of ‘the people’ means fixing what we have.

Posted by: BCT | November 25, 2011, 8:57 am 8:57 am

We need to stop this nonsense of having 2 branches of government, Democrat and Republican.
We should have only one branch, call it Unitarian. That way theres no parties.

Posted by: stan | November 25, 2011, 9:00 am 9:00 am

Time has come, the 13th amendment deals with the abolishment of slavery. What are you talking about?

Posted by: EZ Rider | November 25, 2011, 9:00 am 9:00 am

Why do all the Republican candidates get a pass on the hold to their “own set of facts”? Fact: Lady Michelle Obama does not lie. Even when she is offered an apology, Congresswoman Barchman makes another derogatory remark. How low can Republican candidates go? At least, to informed citizens such as myself, it is clear that President Obama has so far been sidelined in the coverage. Consider the amount of work the Democrats did during the first 2 years (with no support from the party of NO and HELL NO)and compare it to the do-nothing congress of the last year. Every time there is a Republican debate, as an Independent, I affirm my support to President Obama and the Democrats for 2012. At least they have a semi-proven way forward for America. With grassroot support, their efforts will become a successful BLUEprint for America!

Posted by: Alkast69 | November 25, 2011, 9:10 am 9:10 am

We need to stop this nonsense of having 2 branches of government, Democrat and Republican. We should have only one branch, call it Unitarian. That way there’s no parties. Posted by: stan | November 25, 2011, 9:00 am.

Democrats and Republicans are political affiliation Parties, not branches of government. While they are the two most popular, and the two most powerful, they are not the only two we have. Go look it up…………

Posted by: Searambler | November 25, 2011, 9:19 am 9:19 am

There are no cuts coming, just a slowing of the rate of growth. It would be
like working for the next ten years without a raise. This is just what happens all the time in the private sector. I am represented by the teamsters and the best we could
do is a 2% raise over the past 6 years in our contracts. Slowing the rate of growth
in government is something that should have been done years ago. That and capping what the congress and senate make. With all their insider trading deals they make they do not need a raise.

Posted by: deadwrestler | November 25, 2011, 9:23 am 9:23 am

start cutting pay from the top—the president right on down!

Posted by: Don | November 25, 2011, 9:44 am 9:44 am

What a joke! Ronald Reagan promised to get rid of the Dept of Education and he did not even try. Ever since then our rankings in all manner of education disciplines has fallen, proving that it is a national joke designed for employing more federal egg heads. The states should run their own schools and the federal gov. should only be involved when there is a rights violation of the constitution. Go ahead and waste trillions more on this ridiculous dept.

Posted by: rockychance | November 25, 2011, 9:54 am 9:54 am

LOL! …. Cut’s in the Department of Education… the Republicans have no problem with this because the less we provide to education, the more Forrest Gump-like minion followers they get in the ranks of their party.

Posted by: Republicans = a BUNCH of Forrest Gumps | November 25, 2011, 10:09 am 10:09 am

Every state has Education department and also state run EPA . Two massive cuts should start right there. Billions saved. Why do we need the same departments,
at federal and local, all this does is open law suits for trial lawyers another great lobbyist
of our elected officials.

Posted by: deadwrestler | November 25, 2011, 10:12 am 10:12 am

Cuts to education, as well as food and housing programs for the poor will lead to higher property taxes, and more desperate, hungry poor people.
The cruelty of the Republican party to force these cuts in necessary, beneficial programs but refuse to raise taxes on the rich is truly terrible. The proposed tax increase for the wealthy would not have made even a small dent in their lifestyle, but will certainly make a big negative impact on a lot of poor people and children.
Way to go, Republican party, you are serving your corporate and wealthy overlords well!

Posted by: Librarian53 | November 25, 2011, 10:20 am 10:20 am

First, why is the federal government running a ‘supplemental nutrition program.’ Second, just take a look at major urban areas such as Detroit, Cleveland, Baltimore, etc–how effective are those communitty block grants? Third, the states can better manage education spending anyway, so whats the big deal if states have to cope with federal cutbacks. And finally, the article discusses all the people who will be negatively affected by cuts in government spending. Not that Im surprised by this this, but the author completely fails to mention our $15 trillion dollars in debt and growing, and the negative impact such debt has on our economy, and how that affects EVERYONE, not just those who are dependent on government programs. Those programs requires higher taxes. The collection of those taxes places burdens on businesses and economic growth is limited, which negatively impacts economic growth. And dont forget about the welfare state and its negative impact on the mindset of the people. Of course, this article mentions none of this whatsoever. Im not saying that you have to agree with this perspective, but a responsible journalist would mention these points.

Posted by: lrb1414 | November 25, 2011, 10:21 am 10:21 am

Oh yeah! It’s because of the Department of Education that the U.S. has received scores around 500 on a scale that goes up to 1,000: 487 in math, 500 in reading and 502 in science (as of 2010), ranking 14th out of 34 countries. It’s working soooo well!

Posted by: newcountryman | November 25, 2011, 10:34 am 10:34 am

The Federal Government has become too big to fail. It is time to let the 50 states take back the jobs which they were given! Let each state deal in their own way and see which ones do the best. The others can learn from best practices without central planning. Keep the Federal Governments role limited!!!!

Posted by: Common _ Sense | November 25, 2011, 11:07 am 11:07 am

the GOP is an acitic , nastiness that lies & throws it’s weight around & nothing ever gets done, except starting wars that they can’t finish. gop needs to get lost so we can move on as a country.

Posted by: ajole | November 25, 2011, 11:08 am 11:08 am

Education belong on the local level. The Department of Education has become yet another self-serving, bloated, bureacratic, tax guzzling, politicized entity.

Posted by: newcountryman | November 25, 2011, 11:17 am 11:17 am

@NEWCOUNTRYMAN – it all starts at home. is your kid studying or playing video games &/or watching tv constantly. Our government works hard , has ALOT of work to do. & parents want to send their kids to school to be baby sit them. It’s where this country’s head is at that is the problem. Too many distractions ESPECIALLY from constant polital coverage where no one is working with one another. well the gop refuses to work with anyone, but themselves to try to make Obama a 1 term prez. WHAT A STUPID STRATEGY. We all lose on that one. They will lose cause it’s stupid & been a waste of time & money when it’s been time that we get together & work together. i don’t see gop ever changing it’s jackass stance until they get voted in , then watch out economy (reference George Bush…not Obama) we are living in the aftermath of Bush. GOP treats Obama like he’s some spendthrift pimp. And nothing could be further from the truth. c’mon gop get some balls & stop being obstructionist. When the going gets tough the gop goes home with their marbles & don’t wanna play till they can rule. how insane. they deserve nothing.

Posted by: ajole | November 25, 2011, 11:19 am 11:19 am

A neurosurgeon called into Mark Levins” radio show and said he left a meeting in Washington where they are working on Obamacare directives that will deny anyone over 70 years of age surgical intervention for treatable cerebral aneurysm and subdural hematomas and instead offer “comfort care”. The elderly are at high risk and have the majority of falls, a subdural hematoma is fluid within the brain cavity that if drained out, little or no residiual deficits occur. Now since the supercommitee didn’t agree on cuts and healthcare is going to automatically get cut will the cutoff age be revisted to a younger group of patients? Sarah Palin was right, Death Panels. Why would anyone with a brain want to engage in anything dangerous to possibly incur physical harm if they know they will not be treated if an injury occurs? Say goodbye to high risk jobs, especially if you are older. I wouldn’t want to be a Hollywood stunt person under this healthcare system.

Posted by: Jo | November 25, 2011, 11:29 am 11:29 am

AJOLE (11:19 PM); I agree with it starts at home, but the rest of what you said could be applied to the non-gop as well…especially the obstructionist part. It just depends on your point of view. Most of what I post is to just not let the Left get away with their idiocy.

Posted by: newcountryman | November 25, 2011, 11:31 am 11:31 am

Obama threw seniors under the bus, so he could squander money elsewhere.

That’s the bottom line.

Posted by: Rick McDaniel | November 25, 2011, 11:56 am 11:56 am

NEWCOUNTRYMAN | NOVEMBER 25, 2011, 11:17 AM, SAID:

“Education belong on the local level.”

===================================

LOL! …. yep, and your sentence structure with this statement is proof that that works….. hehehehehe.

But I do agree, stopping the rest of us from trying to help poorer states with funding their education programs will help us keep the trailer trash in the trailer park states. Most of those states are already “red states” anyway…so it’s a hopeless effort to try to educate them. Their education comes from “Faux News”.

Posted by: Republicans = a BUNCH of Forrest Gumps | November 25, 2011, 12:06 pm 12:06 pm

In other advanced nations, recessions are combated by providing more training and education, heath care at the time studies show it’s most needed, and food for its people. In the USA its totally Darwinian: survive if you can: otherwise, too bad, you don’t deserve it. How we’ve devolved from being a nation know for its compassion to a Me! Me! Me First! society.

Posted by: The_Mick | November 25, 2011, 12:36 pm 12:36 pm

Republicans = a BUNCH of Forrest Gumps | November 25, 2011, 12:06 pm = “stopping the rest of us from trying to help poorer states with funding their education programs will help us keep the trailer trash in the trailer park states.” – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – At least NASCAR “trailer trash” people are self-sufficient unlike the fringe left “nanny state” progressives who want to “redistribute” the wealth of others to support the “taker” states!

Posted by: Common _ Sense | November 25, 2011, 1:06 pm 1:06 pm

X-Repub; Oh my, I forgot the ‘s’. You got me again. Most educated people have done it on their own without the help of the government. It’s called self-initiative.

Posted by: newcountryman | November 25, 2011, 1:31 pm 1:31 pm

I self taught myself math through and up to differential, integral, and vector calculus. BEFORE going to college. No bureacratic help what so ever.

Posted by: newcountryman | November 25, 2011, 1:33 pm 1:33 pm

“trailer trash”…. Has anyone else ever heard someone generalize and attempt to compartmentalize people in an attempt to make some point like X-Repub? Well, there are a few others I suppose. So adolescent. Opps! I mean, “To use class generalizations like X-Repub sounds so very adolescent.” Yeah, that’s better.

Posted by: newcountryman | November 25, 2011, 1:41 pm 1:41 pm

POSTED BY: AJOLE | NOVEMBER 25, 2011, 11:08 AM 11:08 AM were do you want it moved to, make it more like Greece, Italy, Spain ????? We are 99% there.

Posted by: Lizzie | November 25, 2011, 2:23 pm 2:23 pm

AND what percentage of pay did Congress and the House get CUT???????

Posted by: GMAN | November 25, 2011, 2:24 pm 2:24 pm

the best thing about this is maybe it will derail Obamcare. It is useless anyway and will cost more than a fortune.

Posted by: specialty57 | November 25, 2011, 3:52 pm 3:52 pm

Excellent point! Sequester definitely doesn’t include automatic congressional pay cuts.

Posted by: newcountryman | November 25, 2011, 5:52 pm 5:52 pm

NEWCOUNTRYMAN | NOVEMBER 25, 2011, 1:31 PM, SAID:

“X-Repub; Oh my, I forgot the ‘s’. You got me again.”
===============================================
I don’t know who “X-Repub” is but, if you think that the only thing wrong with this sentence is that you forgot the “s,” well then you just helped me prove my previous post:

NEWCOUNTRYMAN: “Education belong on the local level.”

Posted by: Republicans = a BUNCH of Forrest Gumps | November 27, 2011, 1:24 am 1:24 am

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