The Labor & Employment Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues.
Wednesday, August 15, 2012
by Louis C. LaBrecque
When President Obama signed the Budget Control Act in August 2011, ending a congressional standoff over increasing the debt limit, the January 2013 deadline for Congress to agree on a way to reduce the federal budget deficit--and thus avoid the across-the-board cuts to federal agencies called for by the BCA's sequestration process--seemed to be comfortably in the future.
At this point, however, the number of days for Congress to act to avoid the defense and nondefense cuts, estimated by the Congressional Budget Office at about $984 billion over nine years, or almost $110 billion annually, is rapidly dwindling.
Congress will be in recess until Sept. 10. When members of the House and Senate return, the first order of business will be approving a six-month spending plan to keep the federal government operating from Oct. 1 through the end of March. While passage of the plan will avoid a possible government shutdown during election season, it will not end the threat of sequestration in January.
Although the 2012 national elections in November are expected to be a "tiebreaker," with one of the major parties presumably coming out on top, there is no guarantee of a clear winner. Suppose that President Obama narrowly wins re-election but the Republicans hold onto the House and fall just short of establishing control over the Senate. Who is supposed to compromise based on this result?
Before leaving for its recess, Congress passed legislation (H.R. 5872) requiring the administration to provide lawmakers with more details regarding the projected impact on federal agencies and functions of sequestration. The president signed the bill on Aug. 7, meaning under the terms of the legislation that the White House has 30 days to provide the required information. Let's hope the details are enough to force action in time to avoid cuts that were designed to be unthinkable for both parties.
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