Resulting from the debt ceiling debate of Summer 2011, the Budget Control Act created, among other things, the bipartisan, bicameral Joint Select Committee on Deficit Reduction (Super Committee). The Super Committee was comprised of 12 members--6 democrats and 6 republicans, 3 each from the House and Senate. The committee was tasked with identifying $1.2 trillion in cuts/savings over a 10 year time frame. The committee ultimately failed at this task, triggering
sequestration.
Sequestration is an
automatic, spending reduction process that will take effect on January 2, 2013 (real-time, mid-school year!) unless Congress acts to stop it. Sequestration will impact almost all aspects of the federal budget, including all discretionary education programs except Federal Pell Grants. It is a blunt instrument,
cutting all programs without consideration of demand, effectiveness, or return on investment.
While the Congressional Budget Office originally estimated sequestration cuts to be at 7.8%, the newest estimate for the depth of the sequestration cut is 8.4%. A cut of 8.4% would
mean a cut of $3.804 billion to ED's discretionary funds (based on FY12
funds).
Last week, the House passed H.R.5652, the Sequester Replacement Reconciliation Act of 2012, in a near party-line 218-99 vote; all Democrats and 16 Republicans opposed the measure. The proposal would replace the sequester, but by substituting dramatically deeper cuts to non-defense discretionary programs. While the House did pass the bill, it is unlikely that the Senate will pass it. Nevertheless, this conversation warrants our attention.
For more on the Sequester Replacement Reconciliation Act of 2012, see
House votes to replace Pentagon cuts mandated by debt deal.
Whether through congressional action or sequestration, cuts are coming. Find out what sequestration might mean for you:
Check out Moneywatch's
podcast focused on the impact of sequestration on IDEA; and don't miss the new sequestration section on their
website, with links to FAQs, a state calculator, action alerts and more.
Also... See the reports compiled by the Congressional Research Service on sequestration--one on sequestration in a
general sense, and one more focused on its impact on
discretionary programs.
Finally, check out the
updated analysis on sequestration released by the Center on Budget Policy and Priorities.