Sequestration: Minimal overall impact to County services

LOS ANGELES COUNTY – With across-the-board sequestration spending cuts scheduled to be imposed on March 1, 2013, Los Angeles County has completed a review of the potential financial threats the sequester poses, County officials announced Monday.

If sequester cuts go into effect, the overall net impact on the County is likely to be small – less than one percent of the $5.408 billion in Federal revenue the County received in Fiscal Year 2012-13, according to a County news release.

This is because the County receives most of its Federal revenue through low-income mandatory programs which are exempt from sequestration cuts, including Medicaid, Temporary Assistance for Needy Families (TANF), Title IV-E Foster Care and Adoption Assistance, Supplemental Nutrition Assistance Program (SNAP), and Child Support Enforcement.

A number of key public, social welfare programs administered by the County will still be significantly impacted.

While the overall Countywide impact of sequestration would be relatively small, three departments are directly affected because they receive a substantial amount of Federal revenue through non-defense discretionary programs which would be subject to the roughly 5.3% across-the-board reduction:

  • The Community Development Commission:  Community Development Block Grant, Public Housing, Section 8 Housing, HOME Investment Partnerships (HOME) Program;
  • The Department of Community and Senior Services:  Workforce Investment Act and Older Americans Act programs; and
  • The Department of Public Health:  Ryan White AIDS Emergency Assistance, Public Health Emergency Preparedness, HIV/AIDS Core Prevention and Surveillance, Tuberculosis Control, Infectious Disease, and other public health programs, including those funded from the Prevention and Public Health Fund.

Other Los Angeles County programs which are exempt from sequestration cuts include surface transportation programs funded from the Highway Trust Fund, the Airport Improvement Program, the Independent Living Program, and child care entitlement mandatory and matching funding.

The ultimate fiscal impact of Federal Fiscal Year (FFY) 2013 sequestration cuts on the County cannot be determined at this time because none of the 12 FFY 2013 appropriations bills, which fund discretionary programs, have been enacted.  Instead, all discretionary programs are being temporarily funded under a Continuing Resolution through March 27, 2013.

(Information via press release from the County of Los Angeles)

White House officials have released state-by-state reports they say shows the impact the sequester will have on jobs and middle class families across the country.

View the report on California here.

President Obama spoke on the sequester impacts last week. 

  17 comments for “Sequestration: Minimal overall impact to County services

  1. Mark
    February 26, 2013 at 10:04 am

    The federal budget is 3,553,000,000,000 The sequestration is 4,000,000,000.
    Let’s look at it this way. Your monthly budget is $3,553. You have to cut $44 dollars from that. Think you can survive? Well, you just did because if you have looked at your paycheck your payroll taxes went up about $60. What obama is saying to the American people is that he is incapable of doing what he forced YOU to do. That is who your President is.

  2. John Howard
    February 25, 2013 at 2:54 pm

    “Military Readiness: In California, approximately 64,000 civilian Department of Defense employees would be furloughed, reducing gross pay by around $399.4 million in total.”

    Let me relate to how that will impact the Antelope Valley part of Los Angeles County.
    10,000 or so of the highly compensated wage earners who work for DoD that live and spend their money in the Antelope Valley will see as much as a 30% reduction in annual pay through furloughed work days. All of those people who work 10/80 schedules will now get every Friday off instead of every other Friday..unpaid.

    So while many social services will go mostly untouched those who support this community by actually paying taxes will see their expendable income eliminated. Retail will be the first to feel the blow with restaurants soon after and if it lasts through the year expect many of the restaurants we just got used to enjoying in our community close or start accepting E.B.T.

    • d4life
      February 25, 2013 at 4:59 pm

      People are going to have to start spending their money more wisely, that’s all.

      • Forewarned
        February 26, 2013 at 7:40 am

        The only people that will have any money will be the free loaders since Zero doesn’t want to cut THIER spending. Forward!

        • d4life
          February 26, 2013 at 9:49 am

          I disagree with John Howard. The places that will get hit first wont be local retail, it will be online retail. Online retail always takes the first hit due to shipping charges. People buy online out of “convenience” but that same “convenience” magically flies out the window when its time to pinch pennies and make due with what you’ve got.

          • Russel
            March 19, 2013 at 2:05 pm

            d4life. What planet are you from. John Howard was talking about the local impact. He shouldn’t have to explain that to you. And John is dead on right. The Antelope Valley is going to go bust big time. You will see empty homes boarded up all over again like it had in the early 80s with Clinton cutting military. It is going to be a bigger mess than it already is. You will see business close all over the place in the AV. Very sad the community is going to be greatly effected.

  3. Mark
    February 25, 2013 at 2:54 pm

    The sky is falling, The sky is falling. best actor award for a drama goes to Nobama. what a work of art.

    • Stinger
      February 25, 2013 at 7:53 pm

      Riiiight… ‘Cause the Congressional Republicans are just itchin’ to work together with Obama… Seriously; Congess has had HOW many months to work this out? Now that they (both sides) are playing brinksmanship with our LIVES all YOU can do is spout off RNCC commercial lines?

      Nice critical thinking skills there, buddy.

      • Mark
        February 26, 2013 at 4:40 am

        if you think its one partys fault you have been drinkin way to much kool-aid. all of Washington is to blame.from that so-called President on down. I say let it happen and let the chips fall where they fall.

        • Stinger
          February 26, 2013 at 7:25 pm

          Perhaps you didn’t read my posting accurately? Try again, Mark.

  4. QHR
    February 25, 2013 at 2:45 pm

    Section 8 cuts! How cool is that!

    • Stinger
      February 25, 2013 at 7:49 pm

      Not so cool, since the bulk of those cuts will most likely come from administration and enforcement…

      • QHR
        February 26, 2013 at 7:19 am

        Dang Stinger! If Section 8 enforcement is cut, then we are in bigger trouble.

        • Forewarned
          February 26, 2013 at 7:38 am

          Enforcement? What enforcement? I thought the hug-a-thugs got what they wanted…letting Section 8’ers commit whatever violations they wanted. Forward!

          • Stinger
            February 26, 2013 at 7:47 pm

            Forejudged, nobody wanted NO enforcement except the few (and it is only a few) people who wish to abuse this program. All of the ‘hug-a-thugs,’ as have misnamed them, merely wanted parity in the enforcement methodologies to be employed.

            Section 8 has been an overly politicized football for those who would misdirect the outrage of the population for their own agendas. This is just as despicable as those who would abuse the race card for every little innocent incident for their own agenda(s).

            The trick is to utilise critical thinking skills, research the truth about a matter from reputable sources, and THEN determine what, if any, position one has on a given subject. NEVER simply trust the media for an accurate redition of a subject. Their job is not to inform, but to enflame: this keeps the attention of the population and makes their advertising rates soar to ensure that they make more money, which is the media’s REAL purpose.

            You have NOW been ‘forewarned…’

        • Stinger
          February 26, 2013 at 7:37 pm

          Mark your calendars, folks, QHR & I agree on something!


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