Tags: Economic- Crisis | Obama Budget | debt-ceiling deal | debt limit deal | Center on Budget and Policy Priorities | Medicaid

Debt and Deficit Deals Call for Cuts

Wednesday, 03 Aug 2011 12:28 PM

The debt and deficit deal is likely to lead to steep cuts in state budgets. While the measure does not specify any reductions, federal dollars make up a third of state revenue, making cuts inevitable, The Washington Post reports.

"The debt-limit deal inevitably will lead to large federal cuts in programs for state and local governments," Nicholas Johnson, vice president for state fiscal policy at the Center on Budget and Policy Priorities, told the Post. "This is going to begin in the middle of the worst year for state budgets."

The debt-ceiling deal calls for a $900 billion reduction in projected domestic spending and a special congressional committee has been created to come up with an additional $1.2 trillion in cuts. A key target for cuts is Medicaid, the largest source of federal aid to states. "They might be looking at Medicaid in the second round of cuts," National Association of State Budget Officers' Brian Sigritz tells the Post. "Transportation and infrastructure programs also could be cut back."

The cuts would come at a bad time for states that have faced $100 billion in budget gaps this year on top of about $400 billion in budget shortfalls in the previous three fiscal years. The Center on Budget and Policy Priorities reports that as a result of the recession, 34 states cut K-12 education funding, 43 college funding, and 31 health care. Since 2008, state and local governments have cut 577,000 jobs, the Post reported.

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Arizona's Sheriff Joe Picks Patriots; Inmates to Get Popcorn

Saturday, 31 Jan 2015 23:21 PM

The Arizona lawman who bills himself as America's toughest sheriff predicts the New England Patriots will win the Supe . . .

Los Angeles, America's Homeless Capital, Counts Its Down-and-Outs

Saturday, 31 Jan 2015 21:46 PM

Notebook in hand, Ana Alvarez walked along the streets of Skid Row, the downtown Los Angeles district that's sometimes c . . .

Police Probing Alleged Corruption in Nevada Legislature

Saturday, 31 Jan 2015 19:59 PM

Las Vegas police have confirmed they are investigating allegations of corruption in the Nevada Legislature involving an  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved