Congressional leaders and the Obama administration are working on a plan for a Continuing Resolution to fund the federal government from Oct. 1, 2012, through March 1, 2013, the first five months of the next fiscal year, FY 2013. Congressional leaders plan to introduce the bill in September.
An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022
Meanwhile, the Congressional Budget Office released a report in late August on the budget and economic outlook for the nation which predicts that Social Security, Medicare and Medicaid will account for 55 percent of all federal spending by 2022.
Visit the Congressional Budget Office website to read the report, An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022.
In related news, Congress and federal agencies are examining the potential impact of across-the-board budget reductions, known as a sequestration, scheduled for January 2013. These reductions under the Budget Control Act of 2011 would cut about $110 billion from the federal budget if Congress fails to enact a plan before then to reduce the national debt by $1.2 trillion.
Under Threat: Sequestration’s Impact on Nondefense Jobs and Services
A report released on July 25 analyzes of the impact of sequestration on dozens of health, education and labor programs in 2013, including state-level information on funding reductions, service reductions, and lost jobs based on an estimated 7.8 percent reduction. The report includes estimates for special education grants to states, preschool state grants, and grants for infants and families. For example, sequestration would cut $43.8 million from Texas Head Start and $80 million (974 jobs) from the state’s special education grant.
Download the report from the Education Writers Association website, “Report — Under Threat: Sequestration’s Impact on Nondefense Jobs and Services”.