President Obama Details Possible Cuts to Federal Spending under Budget Control Act of 2011

President Obama Details Possible Cuts to Federal Spending under Budget Control Act of 2011

On September 14, 2012, the President's Office of Management and Budget released a report on what the estimated impact of sequestration pursuant to Sequestration Transparency Act, as mandated by the Budget Control Act of 2011, would be on January 2, 2013, should the Congress not agree upon a budget or otherwise intervene prior to that time.  According to the report, it is estimated that, among other things, there would be a 9.4% cut in non-exempt defense discretionary spending and a 8.2% decrease in non-defense, non-exempt discretionary funding.  The nearly 400 page report details plans for cuts federal government spending amounting to some $1.2 trillion dollars.

In Appendix A to the report, the following agency cuts in selected labor/employment sectors are as follows:

U.S. Department of Labor Wage and Hour Division: $19 million

Occupational Safety and Health Administration: $46 million

Occupational Safety and Health Review Commission: $1 million

Office of Federal Contract Compliance Programs: $9 million

Equal Employment Opportunity Commission: $30 million

National Labor Relations Board: $23 million

These cuts, if implemented, would undoubtedly have significant impacts on these agencies.  It is assumed that each agency is preparing or has prepared contingency plans to deal with any such reductions in funding.

Read about additional Labor and Employment Law Developments by Edwin S. Hopson in the Wyatt Employment Law Report.

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