House Republicans’ Sequester Would Cut 40,000 Jobs in Tennessee

SEQUESTER FACTS: House Republicans’ Sequester Will Eliminate Millions of Jobs, Including Nearly 40,000 Jobs in Tennessee

Tea Party House Republicans left the capital last week without any attempt to negotiate a deal on the sequester — a series of deep and indiscriminate cuts that experts estimate will eliminate millions of jobs and could throw the economy back into a recession. Rather than put a stop to the sequester by closing tax breaks for millionaire and corporate special interests, House Republicans — like Rep. Scott DesJarlais, Rep. Chuck Fleischmann, Rep. Diane Black and Rep. Marsha Blackburn — are allowing it to take place.

The cuts will affect areas across the government from defense to domestic spending, including medical research, Army Corps of Engineers projects, federal law enforcement officers, Head Start and services to pregnant women. Republicans have refused to bring up a compromise plan that achieves the deficit reduction by ending special tax breaks for millionaires and corporations.

In Tennessee, Sequester Will Eliminate Nearly 40,000 Jobs
Here is the plan that House Republicans are green lighting:

Study: Sequester Would Cut 39,120 Jobs in Tennessee. According to a 2012 study by George Mason Professor Stephen Fuller, the automatic spending cuts affecting Department of Defense and non-Department of Defense discretionary spending would lead to significant job losses in every state.

• Sequester Would Cost Tennessee $2 Billion in Total Lost Income.[The Economic Impact of the Budget Control Act of 2011 on DOD & non-DOD Agencies, Professor Stephen Fuller, 7/17/12]
Study: Sequester Would Slash Critical Maternal and Child Health Services. The American Academy of Pediatrics studied the impacts that sequestration will have on Tennessee and projected that:

• 13,200 mothers and young children would lose access to food assistance and critical health care.
• 4,100 fewer children would receive vaccinations.
• 75,100 fewer women, children and families would receive critical preventive health care.
• $53 million would be cut from the NIH’s research projects based in Tennessee.[American Academy of Pediatrics, 10/1/12]

Study: Sequester Eliminates $46 Million in Education Funding, Affecting Thousands of Tennessee Students. The Center on Budget and Policy Priorities analyzed how sequestration would impact education in Tennessee and concluded that the state would lose $46,751,000 in federal funding for critical education programs. These cuts include:

• $12 million would be cut from special education funding, affecting 5,660 students.
• $1.2 million would be cut from grants for career and technical education.
• $642,000 would be cut from need-based grants that would help 24,990 low-income Tennessee students pay for college.
[NEA, February 2013]

Nationally, Sequester Will Be Devastating
CBO: Sequester Expected to Eliminate 1.4 Million Jobs Nationally. The non-partisan Congressional Budget Office concluded that 1.4 million jobs are at stake if sequestration were to go into effect. “According to CBO’s projections, if all of that fiscal tightening occurs, real (inflation-adjusted) gross domestic product (GDP) will drop by 0.5 percent in 2013 (as measured by the change from the fourth quarter of 2012 to the fourth quarter of 2013)—reflecting a decline in the first half of the year and renewed growth at a modest pace later in the year. That contraction of the economy will cause employment to decline and the unemployment rate to rise to 9.1 percent in the fourth quarter of 2013.” [Congressional Budget Office, 11/8/12]

CBO: Sequester Expected to Cut Economic Growth in Half. The sequester is also expected to lead to a recession in 2013 by slashing economic growth in half.

According to the Wall Street Journal’s MarketWatch, “Fiscal tightening including the automatic budget cuts known as the sequester would cut U.S. growth in half in 2013 if allowed to go into effect, the Congressional Budget Office said Tuesday in a new budget and economic outlook. … CBO said Tuesday that growth would be about 1.5 percentage points faster in 2013 if not for fiscal tightening including the sequester.” [MarketWatch, 2/5/13]

By The Numbers: Sequestration Will Target Women, Child, Veterans, and the Most Vulnerable
According to an analysis by U.S. Senate’s Appropriations Committee on the impacts of sequestration, as reported by the New York Times:

• 4,000 workers would be furloughed every day at the F.A.A., causing flight backups.
• 70,000 children would lose Head Start.
• 14,000 teachers and other school employees could lose their jobs.
• 125,000 families would be put at sudden risk of homelessness because their rental assistance would end.
• 373,000 seriously mentally ill adults and severely emotionally disturbed children would most likely lose their treatments.
• 600,000 women and children would lose nutrition aid from the Women, Infants and Children program.
• 251,000 civilians employed by the Army could be furloughed for up to 22 days.
• $3 billion would be the potential shortfall in the military’s health insurance program; some services could be denied for retirees and dependents of active-duty personnel.
• 7,750 Customs and Border Protections agents could be laid off.




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