Tagged: sequestration

The debate over federal spending cuts has made Head Start a major topic of conversation in Washington. Leaders from both parties warn that tens of thousands of kids will lose a chance at Head Start’s preschool program, if the across-the-board spending cuts are allowed to happen.

To some critics, cutting Head Start would be a good thing. They think it is a failure, and not worth the money. 

This week in Michigan politics, Christina Shockley and Jack Lessenberry discuss the idea of increasing sales taxes on services to help fund road improvements in the state, how sequestration could affect Michigan, and why a Detroit City Council meeting to discuss how to avoid a state takeover was canceled.

LANSING, Mich. (AP) - Michigan's budget director says he doesn't expect automatic federal budget cuts scheduled to take effect Friday to start hitting state programs for a month.

John Nixon told The Associated Press on Tuesday he expects there will be "real cuts to real people."

But he says it's too early to know the true impact on jobs and Michigan residents, and he doesn't think the Obama administration knows yet either.

Federal dollars supply more than half Michigan's budget. Nixon says he's hearing from experts that cuts won't hit state government immediately because the federal budget is funded through March 27.

Big program like Medicaid and food stamps won't be affected. But Nixon says he's concerned about cuts to home heating assistance, food aid for low-income pregnant women and job training.
 

Today on Stateside, Cyndi talks "sequestration." The word is on the tip of everyone's tongue in D.C.

We’ll get a break-down of how those across-the-board cuts could directly affect Michigan's economy.

We also look at the challenges around re-inventing abandoned and distressed neighborhoods.  Cyndy gets a perspective from two urban planning experts.

Also, it was a very busy weekend for the Michigan Democratic and Republican Parties.

Both held their conventions this weekend, and for one party, it means a brand-new state leader.

So Rick Pluta, the Lansing Bureau Chief for the Michigan Public Radio Network, stopped by to help fill in the details.

LANSING, Mich. (AP) - The White House says Michigan faces about $140 million in losses if an automatic federal budget cut takes effect Friday, and U.S. Sen. Carl Levin says he's hopeful the deadline pressure will prompt Congress to raise money by closing some tax loopholes.

The Michigan Democrat tells MLive.com that the key to a deal this week lies with finding some Republicans who are willing to balance spending cuts and revenue increases.

Michigan hospitals could be among those hardest hit by automatic federal budget cuts this week.

Under the sequestration, Medicare reimbursements to doctors and hospitals would be cut by two percent.

Laura Appel is the vice president for federal policy and advocacy with the Michigan Health and Hospital Association.  She says sequestration would add up to tens of millions of dollars a year in loss reimbursements to Michigan hospitals. 

Michigan stands to lose thousands of jobs if automatic federal budget cuts take effect at the end of the month.

The effects could ripple through the state’s economy.

Stephen Fuller, an economist at George Mason University, has broken down the effects of the $85 billion in federal spending cuts that will go into effect if the so-called sequestration goes through next week.

He estimates Michigan will lose 23,000 to 25,000 jobs, mostly defense department related, but also about 10,000 non-governmental jobs.

That’s slightly lower than the more than 30,000 jobs lost he predicted last year, but he says the effect on Michigan’s economy will still be more than $2 billion.

Fuller says small businesses will feel the effect more than large businesses.

“They have a harder time adjusting…they don’t have stockholders or large deposits in the bank to live off of,” said Fuller.

Fuller says government workers will probably start to feel the budget cuts in April, but a Lansing area defense contractor has already announced layoffs tied to the looming sequestration.