Shaheen: Sequester Cuts, Uncertainty Will Hurt NH Business

Congress has been unable to make a compromise to dodge $85 billion in spending cuts, and the effect will be felt in New Hampshire.

U.S. Senator Jeanne Shaheen (D-NH) met with small business and community leaders, teachers and students across New Hampshire today to call for a bipartisan agreement to fix the country’s deficit and debt. 

“I’m extremely disappointed that Congress was unable to do its job and responsibly address our deficit and budget issues in a comprehensive and bipartisan way,” Shaheen said in a press release. “The folks I met with today agree – sweeping, indiscriminate cuts are not the right way to deal with our debt and deficit. We must do better.”

One of her stops was Cirtronics, a Milford-based electronic contract manufacturer. President Gerardine Ferlins joins many businesses across the state that are fearing the effects of the looming budget cuts, which are not fully known not right now.

“Without definition it is hard to plan,” said Ferlins on Friday. “I went out to all of our customers to ask what they believe will be the effect, but they have no indication yet.”

She added that this big unknown is going to keep businesses cautious, and that will have a big effect on the local economy. A solution needs to this problem needs to be reached as soon as possible.

“The New Hampshire Congressional delegation needs to do all they can do to ensure that the looming spending cuts under sequestration are made with a bipartisan, thoughtful, targeted and common sense approach. We need to work towards comprehensive, long term solutions to the current debt crisis in order to achieve a sustainable and robust economic recovery,” said Ferlins in a press release.

Shaheen worries about other companies who are either directly affected by the cuts, or have contracts with those who do. The size of the cuts is unprecedented, and having to deal with them in the middle of a fiscal year adds to the frustration.

The specifics may have businesses worried, but the White House has provided a look into what is set to be cut in New Hampshire. Funding will be pulled from defense, education, law enforcement, public health and other programs.

Airport towers are listed for closure, shipyard workers face cuts in their hours and crucial educational assistance will be pulled out from under our feet, according to Shaheen.

“These sweeping automatic budget cuts can have real and extreme consequences for New Hampshire’s economy. They were never designed to go into effect.  Instead, they were designed to encourage Congress to set spending priorities and come up with a comprehensive plan to address our debt and deficits. Now we must live up to that responsibility and find a comprehensive and balanced plan to put us on a more sustainable fiscal path.”

Further cuts await if a solution is not found in time. $110 billion dollars will be cut each year unless the two parties put aside their differences and come together.

“This is not just a one year problem, it is a multi-year problem,” said Shaheen on Friday.

Shaheen said that Washington needs to find savings and there are plenty of bipartisan solutions available. They include reorganizing state departments, closing loopholes for companies who outsource overseas and putting aside each party’s “sacred cows.”

“There are a number of things we can agree on,” said Shaheen. “We just need to come together, sit down and figure out how to get this done.”