I haven't heard much talk about the automatic spending cuts that will take effect, beginning January 1, 2013 if no budget plan is reached.
There has to be a reason we're not hearing about the automatic cuts.
Sequestration will hit California particularly hard, Victor Valley Daily Press.
California will be hit hard by sequestration, the automatic spending cuts in the federal budget set to go into effect Jan.1 unless Congress agrees on a plan by year end to reduce the federal deficit by more than $1 trillion, according to a study by an private economic development council.
If sequestration goes forward, combined with the earlier mandated cuts to the Department of Defense, the state will lose 336,000 defense-related jobs, $21 billion in economic output and $6.9 billion in personal earnings over the next eight years, according the Southern California Leadership Council and the Southwest Defense Alliance.
Sequestration will account for 136,000 of these lost jobs, $7.5 billion in reduced economic output and $2.4 billion in lower personal earnings, the study revealed.
Sequestration calls for $1.2 trillion in spending reductions from fiscal years 2013 through 2021 from both defense and non-defense departments.
However, defense spending will be disproportionately affected. The Department of Defense accounts for 19 percent of the federal budget but is slated to take 50 percent of the required sequestration cuts, meaning that the Pentagon must cut $492 billion in military spending over the next 10 years. This is on top of the $487 billion already set to be cut from the defense budget over the same decade.
