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Home / Issues / Federal Budget & Taxes / Budget Stalemate Threatening Local Jobs and Public Investments

Budget Stalemate Threatening Local Jobs and Public Investments

March 7, 2013
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By Ali Mickelson

It’s hard to believe but starting March 1, schools, mental health facilities, housing providers and national parks will have to start laying off or furloughing workers and reducing services in Colorado communities The continuing Congressional stalemate on the deficit reduction has resulted in blunt, across-the-board budget cuts that will have a detrimental impact on jobs and public investments across the country and here in Colorado. These budget cuts, known as sequestration, impact schools, small business, food safety, research and innovation and mental health care. In Colorado, they mean another blow to services that are just being to recover from the Great Recession.

Specifically, Colorado sequestration cuts in 2013 include:

Teachers and Schools: Colorado will lose $8.4 million in funding for K-12 education. This will result in the loss of  approximately 120 teachers. In addition, Colorado will lose $81 million in funds for special education, resulting in the loss of 100 teachers, aides and staff who help children with disabilities.

Preschool: The Colorado Head Start and Early Head Start preschool spots will be eliminated for roughly 700 students.

Higher Education: Roughly 1,170 fewer low-income students will receive financial assistance for college and 430 fewer students will be able to get work study jobs.

Child Care: Up to 300 low-income children could lose access to child care.

Vaccines for Children: Around 2.240 fewer Colorado children will receive critical vaccines that prevent diseases such as measles, mumps, rubella, tetanus, whooping cough, influenza and Hepatitis.

Meals on Wheels: Colorado will lose $720,000 that provides meals for seniors.

Job Training and Assistance: 14,810 fewer Coloradans will receive support and training needed to find employment.

Substance Abuse: Colorado will lose $1.3 million in grants that help treat and prevent substance abuse resulting in 3,500 fewer spots available in substance abuse programs.

Environment: Colorado will lose $2 million in environmental funding to ensure clean air and water and prevent pollution, as well as $1.2 million in grants for fish and wildlife protection.

Defense: In Colorado, 12,000 Department of Defense employees will be furloughed, resulting in a $68.5 million reduction in income moving in the economy. Additionally, Army funding in Colorado will be reduced by $57 million and Air Force funding by $8 million. 

Our economy is in a fragile recovery so it is more important than ever that Congress avert additional cuts that cost us jobs. Our economy and communities need a balanced approach to deficit reduction. That balance begins with reforms to the tax code that generate new revenue from corporations and wealthy taxpayers. A solution that includes additional revenue is the best path to future prosperity. Now is the time for our Congressional leaders to move beyond stalemate for the sake of our economic future.

For more information on both the Colorado and national cuts, please see:
http://www.whitehouse.gov/sites/default/files/docs/sequester-factsheets/Colorado.pdf

Ali Mickelson, Tax Policy Attorney, 720-379-3019 ext. 222, mickelson@coloradofiscal.org