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As part of the Budget Control Act (BCA) passed by Congress last year and because the “Super Committee” fiscal commission created by the BCA failed to propose $1.2 trillion in deficit reduction, we will enter into automatic sequestration, without further congressional action; in which OMB would establish an across the board cut for all nonexempt discretionary programs. The actual percentage and dollar cut will be calculated by OMB and ordered by the President on 1/2/2013.

On July 20, 2012, the U.S. Department of Education issued a letter clarifying sequestration and that it will not go into effect until FY14 for most programs. Please read the entire letter for more information.

The American Association of School Administrators has developed an Excel sheet that you can use to calculate the impact of sequestration on school districts. Simply plug in the amount the district currently receives from the listed Programs, the file automatically calculates the cut and the totals.

The Center for Budget and Policy Priorities has issued a report explaining the automatic sequestration process in more detail.

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