United Way of California

Understanding Sequestration and its Fiscal Impact on California

August 27, 2012

Sequestration is an automatic, across-the-board spending cut that would bring federal spending levels in line with the Congressional Budget Control Act of 2011. If no plan is enacted to reduce our national debt by $1.2 trillion, there will likely be a 7 to 9 percent cut on most discretionary programs, including Head Start and School Improvement Grants. If sequestration proceeds, California stands to lose over $546 million in federal funding due to cuts in Health and Human Services, Education and Workforce Development. Here is a summary of the potential cuts and actions you can take to help prevent them.

Projected Sequestration Cuts to Health and Human Services in California

• Nearly 400,000 fewer low-income women and children will receive prenatal care and preventive services due to cuts to grants aimed at reducing health disparities
• 24,665  fewer children will receive MMR, Tdap, flu and Hepatitis B vaccinations
• More than 5,000 children will not have access to high-quality child care and early education due to a $19M reduction in subsidies to low-income working families

Projected Sequestration Cuts to Education in California

• 296,172 fewer students served, 1,920 education jobs lost and 506 fewer schools will receive education grants due to nearly $140M in cuts to Title 1 grants to local agencies
• Nearly 24,000 teachers, serving 475,000 students, will lose professional development opportunities due to a $23M cut in Improving Teacher Quality Grants
• 331,676 fewer students will receive job training for high-demand jobs due to a $15M cut in State Grants for Career and Technical Education

Projected Sequestration Cuts to Workforce Development in California

• Nearly 140,000 fewer job seekers will be assisted due to a $6.5M cut in Employment Services
• Approximately 60,000 jobs, displaced workers, and youth will lose workforce development opportunities due to $30M in cuts to the Workforce Investment Act

What You Can Do

• Contact your federally elected officials and urge them to mitigate funding cuts to education, income and health programs that build and maintain the foundation of our society
• Inform all of your elected officials and community stakeholders on the human impact Sequestration will have on low-income families and children in your community and across CA

Adopted from: Under Threat: Sequestration’s Impact on Nondefense Jobs and Services. A report by the Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education, and Related Agencies. July 25, 2012.

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