FEDweek: The Five Ws of Sequestration:
A Guide to Furloughs and Other Threats to Federal Employees

Copyright © FEDweek LLC 2013

1. Why are federal employee furloughs being threatened?

The origins go back to mid-2011 when political leaders were faced with the need to raise the federal debt ceiling. As part of a law raising the limit, deficit reduction of $1.2 trillion over 10 years was ordered. However, special bipartisan committee on that issue disbanded late in 2011 when it reached its deadline without reaching an agreement. Under the debt ceiling law, that meant automatic cuts called “sequestration” would begin with calendar year 2013, also spread out over a decade, to achieve the same amount of deficit reduction.
Many “mandatory” spending programs are exempt, including payments from federal retirement, Social Security and other benefits programs, as well as some “discretionary” programs.

However, even where a program is shielded, the administrative expenses to operate it —
including the funds to pay federal employees working in it — are subject to sequestration.
A law enacted just as those cuts averaging about 10 percent were set to hit in early January 2013 delayed the sequester until March 1 by ordering certain savings and revenues elsewhere, but inthe meantime leaders could not reach an agreement either on a long-term way to replace the sequester or on another delay. Continue reading “FEDweek: The Five Ws of Sequestration: A Guide to Furloughs and Other Threats to Federal Employees”