OHIO

The failure of the Joint Select Committee on Deficit Reduction to produce a bill identifying budgetary savings of at least $1.2 trillion over ten years (2012-2021) has triggered an automatic spending reductions process that includes sequestration (the cancellation of budgetary resources) to take effect on January 2, 2013, as stipulated in the Budget Control Act of 2011.  For fiscal year 2013, automatic, across-the-board budget cuts will be applied to almost all federal education programs.  As required under the Sequestration Transparency Act of 2012, the Office of Management & Budget (OMB) released a report detailing the reductions necessary by budget account based on the same rate of operations as in fiscal year 2012.  Under the assumptions used by OMB, the sequestration percentages for the nonexempt, nondefense function would be 8.2 percent for discretionary appropriations, and 7.6 percent for mandatory (or direct) spending.  The impact on education from applying OMB’s estimates is presented here.  The estimates by OMB are preliminary.  Appropriations legislation that is actually enacted for fiscal year 2013 may change the estimates