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Sequestration to cost State of New Hampshire
more than $6 million in federal funding

The White House has released fact sheets showing state-by-state impacts of the automatic budget cuts known as “sequestration”, which are scheduled to go into effect on Friday. This year alone, state and municipal governments in New Hampshire will lose:

  • almost $3.3 million in federal funding for k-12 education
  • almost $1.8 million in federal grants for environmental protection, including fish and wildlife grants
  • more than $1 million in other funding for health programs, job training, justice programs and meals for seniors.

About 1,000 civilian Department of Defense employees will be furloughed, reducing their pay (and the amount they can spend in local businesses) by about $5.4 million. And other federal employees based in New Hampshire will also be furloughed.

Read the New Hampshire fact sheet here.

Domestic Discretionary Spending

During the past few Congress-created crises, federal spending has already been cut by over $1.4 trillion – bring domestic discretionary spending to its lowest level as a share of the economy since the Eisenhower era.

GOP House leadership refuses to do anything except cut spending even more. Read “The Republicans Make an Offer on Sequestration” here.

The Democrats’ plan is to defer the sequester with a mix of tax revenues and more-targeted spending cuts. Read more in the Washington Post here. In that mix: $54 billion would be raised by ensuring that that most millionaires pay at least 30 percent of their income in taxes. But that proposal was immediately dismissed by GOP Senate leadership – and we all know the GOP’s record at filibustering legislation they don’t like.

At this point, most observers expect sequestration to go into effect as scheduled. Remember who created this crisis, when you see the trickle-down effect on state programs and local school districts.

Next crisis date to watch? March 27th, when the current budget resolution expires and the federal government faces shutdown.



About Liz Iacobucci

Liz Iacobucci is the former Public Information Officer for the State Employees’ Association of New Hampshire, SEIU Local 1984. Over the past three decades, she has served in government at the federal, state and municipal levels; and she has worked for both Democratic and Republican politicians.
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