EagleTribune.com, North Andover, MA

Business

March 2, 2013

Gridlock: No budging at the budget-cuts deadline

(Continued)

Boehner said the House will pass legislation next week to extend routine funding for government agencies beyond the current March 27 expiration. “I’m hopeful that we won’t have to deal with the threat of a government shutdown while we’re dealing with the sequester at the same time,” he said, referring to the new cuts by their Washington-speak name.

Obama said he, too, wanted to keep the two issues separate.

Under the law, Obama had until midnight to formally order the cuts. Barring a quick deal in the next week or so to call them off, the impact eventually is likely to be felt in all reaches of the country.

The Pentagon will absorb half of the $85 billion required to be sliced between now and the end of the budget year on Sept 30, exposing civilian workers to furloughs and defense contractors to possible cancellations. Said Defense Secretary Chuck Hagel, only a few days on the job: “We will continue to ensure America’s security” despite the challenge posed by an “unnecessary budget crisis.”

The administration also has warned of long lines at airports as security personnel are furloughed, of teacher layoffs in some classrooms and adverse impacts on maintenance at the nation’s parks.

The announcement by the housing agency in Seattle was an early indication of what is likely to hit as the cuts take effect. It said it was taking the action “to cope with the impending reduction in federal funding,” adding that it normally issues 45 to 50 vouchers per month.

After days of dire warnings by administration officials, the president told reporters the effects of the cuts would be felt only gradually.

“The longer these cuts remain in place, the greater the damage to our economy — a slow grind that will intensify with each passing day,” he said. Much of the budget savings will come through unpaid furloughs for government workers, and those won’t begin taking effect until next month.

Text Only | Photo Reprints
Business

Financial News
Stocks
Photos of the Week