Budget sequestration went into effect late last week, imposing a series of across-the-board spending cuts at federal agencies. As a result of sequestration, agencies will be required to reduce discretionary spending 5% and mandatory spending 5.1% over the course of the fiscal year. Because there are less than seven months remaining in the fiscal year, many programs will be required to cut 9 to 9.5% for the remainder of the year.
Even though sequestration began last week, it could be several weeks before its full effects are felt. Many agencies plan to meet their spending reduction targets by implementing furloughs, but due to collective bargaining agreements with many of the unions, it could be at least a month before the furloughs begin to occur.
At the same time, the Continuing Resolution (CR) that has funded the government for Fiscal Year 2013 is set to expire later this month. Yesterday, Rep. Hal Rogers (R-KY), Chairman of the House Appropriations Committee, unveiled a Continuing Resolution through the end of the fiscal year at post-sequestration levels. The House's CR would allow some flexibility for some departments to deal with the sequestration-level cuts. The Senate is expected to provide details soon on its plan for the CR, with Senate Appropriations Committee Chair Barbara Mikulski (D-MD) saying she would favor a full appropriations bill.
Source: NASDA News