Jan. 7, 2013
The fiscal cliff deal, struck last week, delayed steep sequestration budget cuts for two months, but it does virtually nothing to solve the major problems facing federal employees.
Instead, it sets the stage for a series of new “cliffs” within the next couple of months: a needed increase in the nation’s debt ceiling by late February; steep sequestration budget cuts due to hit March 1; and the March 27 expiration of the current government spending bill...
Steve Bell, a former senior Senate Budget Committee staffer now at the Bipartisan Policy Center, said GOP anger at the lack of spending cuts in the fiscal cliff deal means sequestration is now even more likely to occur.
“There are a lot of folks who said, ‘We got nothing in terms of spending restraint, so we’ll just let the sequester occur,’ ” Bell said.
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Economic Policy Project