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Senator Details Potential Job Losses, Urges Congress to Come Together to Avert Job Loss, Economic Consequences

Recovery FeaturedWashington DC- Today, U.S. Senator Bob Casey (D-PA) outlined the impact that the sequester could have on Pennsylvania jobs. During a conference call Senator Casey detailed the potential jobs losses that could occur if the sequester takes effect and called on Congress to come together on commonsense steps to avoid it.

“Leading economists have warned of the massive impact that the sequester will have on our economy. Allowing these indiscriminate cuts to wreak havoc is inexcusable when there is an alternative. The American people deserve a balanced and reasonable approach that will protect middle class families and create jobs,” Senator Casey said.  “Like most households, we have to make tough but smart decisions about our finances. Republicans and Democrats need to come together in a responsible way that will cut spending, sustain the economy and protect the middle class.”

Senator Casey outlined how the sequester would have an impact across the state:

  • Military Furloughs: In Pennsylvania, approximately 26,000 civilian Department of Defense employees would be furloughed, reducing gross pay by around $150.1 million in total. [WH 2/24/13]
  • Army: Base operation funding would be cut by about $7 million in Pennsylvania. [WH 2/24/13]
  • Job Search Assistance to Help those in Pennsylvania find Employment and Training: Pennsylvania will lose about $866,000 in funding for job search assistance, referral, and placement, meaning around 36,860 fewer people will get the help and skills they need to find employment.  [WH 2/24/13]
  • Teachers: Pennsylvania will lose approximately $26.4 million in funding for primary and secondary education, putting around 360 teacher and aide jobs at risk. In addition about 29,000 fewer students would be served and approximately 90 fewer schools would receive funding. [WH 2/24/13]
  • Work-Study Jobs: Around 3,160 fewer low income students in Pennsylvania would receive aid to help them finance the costs of college and around 2,290 fewer students will get work-study jobs that help them pay for college. [WH 2/24/13]
  • Pennsylvania will lose $73.0 million in funding for medical research and innovation. The National Institutes of Health (NIH) is the largest source of funding for medical research in the world. NIH’s work has improved human health by increasing life expectancy and making breakthroughs in the treatment of cancer, heart disease, and diabetes. NIH research also has a significant economic impact, directly supporting hundreds of thousands of jobs and supporting the medical innovation sector which employs 1 million Americans. Across-the-board budget cuts would mean that reduced NIH award funding would impede medical research and cost 1,209 jobs. [NIH, accessed 2/12/13; UMR, 2/13]
  • $13.9 million less for scientific research in Pennsylvania. Under the across-the-board cuts forced by sequestration, at approximate FY2012 award allotment levels Pennsylvania would lose roughly $13.9 million in funding from the National Science Foundation (NSF), resulting in fewer awards to support job-creating research into new scientific breakthroughs. The NSF is the funding source for approximately 20% of all federally supported basic research conducted by America’s colleges and universities, and supports the basic research that leads to scientific advancement in fields like nanotechnology, mathematics, and computer science. [NSF, accessed 2/12/13; DPCC calculations based on NSF, accessed 2/12/13]
  • Overall Impact of Sequester On Jobs: Job losses due to DOD cuts: 39,941. Job losses due to non-DOD cuts: 38,513. Total Job losses due to sequestration: 78,454 in PA in FY’12/FY’13 [George Mason University Study 7/17/12/]
  • Pennsylvania will experience deep cuts in funding for housing and community development. The Community Development Block Grant (CDBG) program provides communities with resources to provide decent housing, expand economic opportunity for local residents, and create jobs through the retention and expansion of businesses. The Housing Choice Vouchers (HCV) program assists low-income and elderly Americans afford safe and clean housing in the private market. Across-the-board cuts would have serious consequences for these programs in Pennsylvania by reducing CDBG funding by $8,734,647 and allowing the HCV program to support 3,961 fewer families. [CBPP, 2/14/13; HUD CDBG; HUD HCV]