Los Angeles County Economy Facing Uncertain Future if Sequester Shrinks Budgets

A political deal struck in the summer of 2011 will begin to affect the economy Friday, unless feuding lawmakers in Washington can agree on a compromise.

The sequester will mandate significant cuts to the federal budget, with few if any government agencies immune to reductions in funding. Defense and domestic spending will be evenly slashed, and the impacts on local economies are far from clear.

Los Angeles County has some 76,300 federal employees and retirees, according to Eye on Washington, and their fate could include furloughs or worse. Media reports include warnings on delays in air travel and tax refunds. Civilians employed by the Department of Defense face the possibility of furloughs.

“The possibility exists for a 22-day furlough of Federal employees,” said Brian O’Rourke, spokesman for Navy Region Southwest.

The idea behind the sequester was was simple, wrote 27th District Congresswoman Judy Chu in a blog published on The Hill. Claremont is among the cities she serves.

"By passing sequestration into law, Congress was creating a deterrent against its own gridlock," Chu wrote. "The law was so unpalatable to both sides – Democrats wanting to avoid cuts to social programs, and Republicans wanting to safeguard defense spending – that theoretically, everyone would negotiate in good faith to avoid it."

"I say theoretically because in practice, negotiating in good faith is about as far from what has taken place as possible," Chu wrote.

Grace Napolitano, congresswoman for the 32 District that includes La Verne, expressed concern over the effects of the sequester as well.

“Hardworking people from my district have lost their jobs, and we need to ensure critical services that support them and their families will not be cut. We must reduce spending, but forcing the middle class to bear the burden is not the solution,” Napolitano told Patch. “Ending tax breaks for millionaires and corporations will ensure that they also pay their fair share.”

To see which local businesses have defense contracts that will be affected by the cuts, search the Congressional District Reports at For the Common Defense.org.

Downloadable spreadsheets show the contract dollar amount, contractor business name,  address and phone number, the contractor industry classification, and whether the business is a small or disadvantaged business, woman-owned, minority-owned or veteran-owned, according to the website.

The Obama administration released on Sunday a report for each state detailing the impacts of the sequester’s budget cuts, and Republicans have accused the president of using scare tactics for political gain.

The seven-page report for California paints a grim picture for education, environmental protections, the military, law enforcement, child care, public health and government services. The report is attached to this article in the PDF section.

The nation has been through this drill before. The sequester was set to begin on Jan. 1, 2013, if lawmakers weren’t able to reduce the budget deficit. That deadline came and went, but they were able to agree on postponing the sequester for two months. That time is running out.