2013 WNY Economic News
1st Quarter 2013
Despite an economy that was dead in the water during the fourth quarter of last year, it appears that the national economy avoided the double dip recession that seemed imminent in September 2011. The national recovery has remained very sluggish however, as payroll employment has continued to increase but at a very slow pace while real GDP growth has averaged only 1.58% over the past four quarters. The regional economy has had an upturn in total employment, which when combined with a second consecutive increase in earnings per worker could lead to the first positive regional trend since 2007.
The OMB report to the Congress on the Joint Committee sequestration for Fiscal Year 2013 states:
The Balanced Budget and Emergency Deficit Control Act, as amended (BBEDCA), 2 U.S.C. § 901a, requires the Office of Management and Budget (OMB) to calculate, and the President to order on March 1, 2013, reductions in budgetary resources triggered by the failure of the Joint Select Committee on Deficit Reduction to propose, and the Congress to enact, legislation to reduce the deficit by $1.2 trillion (Joint Committee sequestration)….OMB calculates that the Joint Committee sequestration requires a 7.8 percent reduction in non-exempt defense discretionary funding and a 5.0 percent reduction in non-exempt nondefense discretionary funding. The sequestration also imposes reductions of 2.0 percent to Medicare, 5.1 percent to other non-exempt nondefense mandatory programs, and 7.9 percent to non-exempt defense mandatory programs.
The special edition newsletter discusses potential vulnerabilities for state and local governments that might be the result of these cuts.
Download the Special Edition pdf here.