For local governments, the automatic spending cuts looming in Washington could have a real impact on their budgets and services. But in the micro-economies of California cities and counties, there’s little denying that the cuts could impact jobs, programs, and growth.
In the Greater Bay Area, numerous military bases and federal installations provide jobs for residents, including the Presidio in Monterey, the AMES Research Laboratories, and Lawrence Laboratories all are facing possible furloughs and budget reductions. School districts expect to lose as much as 5.8 percent. And local governments, where funding for various programs comes from federal grants and state-level funding provided from the Federal Budget, the actual size and breadth of the cuts will take months to materialize.
President Obama has been touring the nation describing what a full sequester will look like. He highlights larger class sizes, fewer police officers, and less efficient air travel. Politico labeled the President “Mayor Obama” since he began highlighting the local implications of sequester.
Southern California has a massive military industrial industry which has already suffered from previous years of cuts. Boeing has scaled back its production facilities, and additional cuts to the defense department could potentially rattle the Southern California economy
According to recent figures released by the Obama administration, California faces the potential loss of 225,000 current and future jobs.