Illinois Braces For Looming Federal Cuts
From the Chicago Tribune
Illinois is bracing for federal spending cuts set to begin Friday that could result in millions of dollars less for everything from airport operations to education.
But while Washington might be cutting back on funding, it is supplying plenty of uncertainty, forcing government officials in Illinois to scramble for ways to cope with the expected loss of money.
Over the weekend, the White House issued talking points on programs that would be threatened if Democrats and Republicans do not reach a deal to head off the automatic cuts known as sequestration. But in many cases it will be up to local-level officials to figure out what gets funded and what does not.
Some think a deal is still possible before Friday, while others welcome the cuts as a necessary brake on spending. Still others are downplaying the overall impact.
But some experts believe the situation is particularly dangerous for states like Illinois, which is on such shaky financial footing that it cannot afford to lose any dollars, whether from direct cuts in spending or the ripple effect that could lead to a decrease in tax revenue because of nervous consumers uninspired to spend.
"States are just now really recovering from the recession," said Anne Stauffer, project director at the Pew Charitable Trusts, an independent, nonprofit public policy research group. "They don't have a lot of flexibility to absorb these cuts in revenues, but also the potential economic impact as well."
Read more in our daily News Update...
From the Chicago Tribune
Illinois is bracing for federal spending cuts set to begin Friday that could result in millions of dollars less for everything from airport operations to education.
But while Washington might be cutting back on funding, it is supplying plenty of uncertainty, forcing government officials in Illinois to scramble for ways to cope with the expected loss of money.
Over the weekend, the White House issued talking points on programs that would be threatened if Democrats and Republicans do not reach a deal to head off the automatic cuts known as sequestration. But in many cases it will be up to local-level officials to figure out what gets funded and what does not.
Some think a deal is still possible before Friday, while others welcome the cuts as a necessary brake on spending. Still others are downplaying the overall impact.
But some experts believe the situation is particularly dangerous for states like Illinois, which is on such shaky financial footing that it cannot afford to lose any dollars, whether from direct cuts in spending or the ripple effect that could lead to a decrease in tax revenue because of nervous consumers uninspired to spend.
"States are just now really recovering from the recession," said Anne Stauffer, project director at the Pew Charitable Trusts, an independent, nonprofit public policy research group. "They don't have a lot of flexibility to absorb these cuts in revenues, but also the potential economic impact as well."
Read more in our daily News Update...