Reality Check: Sequester’s Impact On Minn. Is Lower Than Most
ST. PAUL, Minn. (WCCO) – With no deal in sight, the president is on the verge of signing an order that will slash billions of dollars from the federal budget.
$85 billion – or about 3 percent of the budget – needs to be cut by midnight on March 2. That’s because members of Congress couldn’t see eye-to-eye on a compromise.
Democrats wanted more taxes and Republicans wanted more spending cuts. The White House has warned this budget slashing will lead to layoffs and flight delays.
Minnesotans could suffer from those budget cuts too. Some over time, and some right away.
Like elsewhere in the country, Minnesota air travelers could see longer lines and slower travel if the government follows through on threats to furlough air traffic controllers and TSA agents one day each pay period.
The White House says:
– The jobs of 100 Minnesota school teachers and aides are at risk.
– 700 low-income children won’t get into Head Start.
– 2,360 won’t get vaccines.
The Blue Angels might not perform at the St. Cloud Air Show in July. And Meals on Wheels could deliver fewer meals to the elderly.
But Minnesota will be hurt less – a lot less – than most other states. That’s because Minnesota gets fewer dollars from the federal government than almost anywhere else.
For every dollar Minnesota sends to Washington in federal taxes, it gets back 68 cents in federal grants and programs. That puts us 49th among 50 states in federal aid, which means there’s less to cut here.
The White House predicts Minnesota will lose more than 16,000 jobs. But state economist Tom Stinson says that’s not true. The sequester could slightly slow Minnesota’s job growth, but outright job losses are not expected.
Here are some of the sources for this Reality Check:
White House Sequester – Impact/Minnesota
Pew Trust Study: Federal Grants By State
Tax Foundation: Federal Spending Vs Federal Taxes By State
Airport Slowdowns After Sequester
MN Economic Forecast, Including Sequester
MN Meals on Wheels
St. Cloud Air Show