With sequestration set to take place in March 2013, the Senate Appropriations Committee called upon various leaders of federal agencies for a better understanding of how the $85 billion cuts through the remainder of the fiscal year will affect their missions and goals, as well as the public they serve. On February 14, Senator Barbara Mikulski (D-Md.) and Senator Richard Shelby (R-Ala.), Chairwoman and Ranking Member of the committee, presided over the hearing. Daniel Werfel, Federal Controller of the Office of Management and Budget (OMB); Arne Duncan, Secretary of the Department of Education; Janet Napolitano, Secretary of the Department of Homeland Security (DHS); Shaun Donovan, Secretary of the Department of Housing and Urban Development; and, Ashton Carter, Deputy Secretary of the Department of Defense provided testimony.

In her opening statement, Chairwoman Mikulski recognized the dangers sequestration poses and the dire impact it will have on the national economy, delays in services it will cause the American public, and the stress it will create for the federal workforce. The $85 billion in cuts set to take place would result in a five percent reduction to all domestic spending and an eight percent cut to defense. In her opening statement, Chairwoman Mikulski stated, “The sequester was never intended to happen. It was designed as a tool to force a grand bargain on reforms to the tax code and reforms to mandatory spending, along with strategic, targeted cuts to reduce spending and get more value for the dollar” She added, “Instead, we play the politics of delay, lurching from deadline to deadline. No one thinks that this kind of ‘ultimatum politics’ is good for the fragile economy, creating good jobs, and promoting efficiencies in government.”

Werfel presented OMB’s concerns of the effects sequestrations, and the recommendations the agency already made to combat deep, across-the-board cuts. While OMB found defense would face a eight percent cut and domestic spending would face a five percent reduction, Werfel pointed out, “...should a sequestration order have to be issued on March 1, agencies would be required to implement the cuts over the remaining seven months of the fiscal year, meaning that in many programs the effective cuts would be closer to nine percent for non-defense programs and thirteen percent for defense programs when compared to what agencies would spend during this period under normal circumstances.” He concluded his testimony, “It is important to reiterate that no amount of planning or preparation on our part, no matter how thorough or careful, can mitigate the significant and highly destructive impacts that sequestration would have. Sequestration is not a responsible way to reduce the deficit.”

Secretary Napolitano brought forth concerns not only on how cuts to DHS will impact the public, but also those fulfilling the agency’s mission and goals. Sequestration would deeply impact the American economy by DHS’s inability to regulate trade and travel over the country's borders, as well as increase wait times at borders. A 2008 study found border delays cause the U.S. economy 206 thousand jobs and $6 billion. Currently the Transportation Security Administration (TSA) protects 640 million aviation passengers, 9 billion passengers on mass transit, and 3.8 million miles of road. In her testimony, Secretary Napolitano stated, “Sequestration’s mandated reductions would require TSA to furlough its frontline workforce and reduce its operations at our nation’s airports, substantially increasing passenger wait times at security checkpoints.” She concluded, “If we are to continue to prepare for, respond to, and recover from evolving threats and disasters, we will need sufficient resources to sustain and adapt our capabilities accordingly.”

For more information on testimony and the hearing, please visit: www.appropriations.senate.gov.