Hoping to illustrate the economic dangers that the U.S. budget sequestration poses, the Obama administration published an outline on February 24 that detailed how the cuts would specifically impact the state of Georgia. Ranging from cuts to education, health care and other important institutions, the document highlights both the costs and risks of this controversial fiscal policy.
According to the White House release, Georgia will see an immediate drop in federal subsidies and assistance programs that are worth millions of dollars per year. The state's public school system will lose roughly $28.6 million during 2013, which could result in hundreds of teacher layoffs. Additionally, 80 primary and secondary schools would suffer from budget gap, and federal officials state that this could impact more than 50,000 Georgia students. Another $17.5 million previously directed toward special education programs will also be cut.
The state will lose another $427,000 in law enforcement and crime prevention funds, some of which are used to operate correctional facilities, victim outreach services and police officer training initiatives. The Defense Department could lay off up to 40,000 civilian employees while the Army and the Air Force may be required to reduce state operational costs by as much as $235 million in base management and maintenance.
A wide variety of medical assistance programs will lose significant levels of funding. For example, a state-run nutrition initiative aimed at senior citizens might receive a budget cut of $1.3 million. Similarly, another $925,000 will be taken from projects that focus on public health concerns.
At this time, it's difficult to predict how the estimated impact of budget sequestration on Georgia and other U.S. states will effect the wider national economy. However, given the relative weakness in consumer spending and the housing market, it's important for investors to act prudently. To learn about effective wealth preservation methods to help you weather this difficult financial climate, visit GreatWealthStrategies.com today.