February 21, 2013
It's been a little more than a week since President Obama addressed the nation in his State of the Union address. In his remarks, he presented us with his vision for the future of America. He described the challenges confronting us today, as well as his ideas for creating a better tomorrow. The tone of the president's speech was impressive because he was not overtly partisan. Rather than attempting to cast blame, he urged members of Congress to work with each other and with him to resolve the myriad issues facing our nation — and given the magnitude of those challenges, I think he is right, because if we are to have any hope of ensuring a better America for generations to come, we must be willing to negotiate across party lines and devise substantive solutions that reflect common sense thinking.
Our first step in getting America back on track must be to address the looming automatic budget cuts called the sequester. If implemented, this collection of willy-nilly, across-the-board spending reductions would wreak havoc on the economy by eliminating thousands of jobs and have dire consequences for our national security.
In Maine, the state economy will face up to $239 million in lost earnings. Those lost earnings could translate into a decrease of $348 million in Gross State Product (GSP). We could lose approximately 7,000 jobs — about 4,000 in defense related industries and 3,000 in non-defense areas such as small businesses. Places like the Portsmouth Naval Shipyard and Bath Iron Works would be hit especially hard and we would likely see increases to the long-term costs of vital ship-building projects. This would be nothing short of a self-imposed disaster, and it is crucial that the president and Congress work hand in hand to solve this crisis — one that was originally intended to be so irresponsible and reckless that Congress could not even fathom considering it. Yet, here we are, approaching the arbitrary deadline of an avoidable crisis with countless jobs hanging in the balance if Congress fails to act.
Beyond cuts to defense, sequestration would negatively impact a whole array of federal activities including everything from education and job training, to medical research, child care, and worker safety. These essential government services directly touch the lives of every U.S. citizen. While I agree with the president that job creation must be our number one priority, these sequester cuts directly threaten our ability to connect job seekers to existing opportunities in the labor market. The five hardest hit counties in Maine, with an average loss of 8 percent of current federal funds, would be Sagadahoc, Penobscot, Cumberland, York and Waldo.
It is estimated that in Maine, nearly 1,000 underemployed adults or dislocated workers will be unable to access employment services that are currently provided by federally funded grants. At-risk youth will no longer be able to pursue the same academic and vocational training through the Job Corps program, and veterans will lose vital resources that help them find jobs as they transition out of active duty.
Furthermore, these cuts jeopardize the strength and wellbeing of our communities by denying Maine families access to basic health-care resources such as lifesaving immunizations for children. Organizations that provide shelter and care to victims of domestic violence would have to scale back their operations, and treatment and recovery facilities for those dealing with substance abuse would not be able to provide the same level of support.
Also, ask anyone who had to endure double-digit negative temperatures last month, and they will tell you that home heating is a matter of life and death given the severity of Maine winters. Should sequestration be fully implemented, the Low Income Home Energy Assistance Program would lose economic assistance funding for home heating, further impacting those families and individuals in need.
I strongly believe that getting our budget under control is critically important, and I'm prepared to support solutions that involve difficult choices. However, the across-the-board sequester approach is the wrong way to go — both in terms of good budgeting and the effects on the economy. These reckless cuts could actually make our deficit problem worse by costing us hundreds of thousands of jobs and tipping us back into recession, just as we are seeing some daylight on the economy.
There are smart ways to deal with the national debt and deficit, but the looming sequester isn't one of them.