Federal Budget Cuts Could Cost Livermore Schools up to $200,000

If the sequester happens on Friday as expected, the deep cuts in the federal budget will reach the neighborhood level in Livermore and other communities.

If a congressional compromise isn't reached, $85 billion will be cut from the federal budget over the next year.

In California, it's expected there will be $87 million in education cuts as well as reductions in federal funding for environmental, public health, child care and other services.

Congressman Eric Swalwell (D-Dublin) wrote via, email:

The automatic across-the-board budget cuts known as the sequester threaten our fragile economy and will have real consequences, to real people in the Fifteenth Congressional District.  In my district alone, schools will lose $11 million in federal funding.  It also means 225,000 jobs put at risk across California, 9,600 fewer low income students in California receiving aid to help them finance the costs of college, and the loss of approximately $5.4 million in funds that provide meals for seniors. 

That’s why I co-sponsored a bill, H.R. 699, that would replace the sequester in a balanced manner with smart spending reductions and new revenue from multimillionaires.  It is the height of irresponsibility to let these cuts go into effect, and it is my hope that we reach a solution that will reduce our deficit and strengthen our economy.

At the local level, schools will probably be the most affected.

Susan Kinder of Livermore Valley Joint Unified School District, wrote:

"At this time we are told that we may lose between $150,000 to $200,000 in Federal funding for special education and Title I.  This amount equates to three to four teachers.  This would come at the heels of the many years of cuts that we have already endured from the State.  Fortunately, the cuts would not take place until July 1.  We are hopeful that sequestration will be diverted through action by Congress, but if that does not happen we will have a plan in place." 

Head Start programs across California will receive less money. It's estimated 8,200 would have reduced access to services.

The cuts could also reduce the hours at federal offices.

Police departments in California are expected to lose $1.6 million in Justice Assistance Grants that support programs such as crime prevention, drug treatment and witness support.

Troy Brown the Assistant City Manager for the City of Livermore wrote:

"As you know, sequestration is the implementation of a hard cap on appropriations in the federal budget. Said another way, any amounts of money equal to the difference between the cap set in the federal Budget resolution and the amount actually appropriated gets 'sequestered' and is not available.

The impact to Livermore's operational budget would be negligible.  This is because the City has a very limited amount of federal dollars appropriated in our budget, which is derived of mainly state and local sources. Of the federal dollars that we receive, the amounts are so minimal that the impacts would be less than 1% of the total federal funds received because sequestration costs are spread across all federal programs, except social security.

What we would likely experience over time is a slowdown in the local economy as both consumer confidence and disposable household income decreased. There are many federal programs that would be subject to sequestration caps, which could have a trickledown effect in the coming weeks or months and those are nearly impossible to quantify. The immediate impacts of sequestration would not be felt."

Finally, job assistance programs are expected to receive $3.3 million less in federal funding. That would affect about 130,000 job seekers.