“The current across-the-board cuts in federal spending have already damaged both national security and the economy, with the negative impact likely to double or triple in the next two years, according to a study released today by the Bipartisan Policy Center (BPC). The analysis was co-chaired by former Senators Pete Domenici, a BPC senior fellow, and Chuck Robb and prominent businessman Mort Zuckerman. The report, The Sequester: From Merely Stupid to Dangerous, warns that even if Congress were to repeal the sequester, created by the Budget Control Act of 2011, the cuts in spending this year will grow significantly in the future…The report notes that the impact of the sequester on national defense and America’s industrial base has been reasonably muted this year because of the unusual nature of defense spending – funds that are appropriated in one year, are spent over many years – especially in the areas of procurement and modernization. While many federal agencies spend most of the money they receive through the congressional appropriations process within a year, defense modernization and procurement funds may not impact the federal balance sheet until years later. Using the purchase of a new submarine as an example, the authors showed that $3.2 billion dollars authorized by Congress in Fiscal Year 2013 would produce actual spending of that money over seven years, with most of the spending occurring in Fiscal Years 2014, 2015 and 2016.”
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