Sequestration
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.
U.S. Department of Education Sequestration Estimates at 5%
(3/8/13)
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.
Sequestration Invoice Spreadsheet ![]()
The Center for Budget and Policy Priorities has issued a report explaining the automatic sequestration process in more detail.
How the Potential 2013 Across-the-Board
Cuts in the Debt-Limit Deal Would Occur
(11/22/11)
Additional Resources
- Committee for Education Funding (CEF) Sequestration Fact Sheet

- Sequestration: Definition from A Glossary of Political Economy Terms (Dr. Paul M. Johnson)
- The Budget Control Act of 2011 (Debt Ceiling Deal) Frequently Asked Questions
(OMB Watch) - How education fares if debt supercommittee fails (Washington Post / 11/21/11)
- The Plans for Reducing the Deficit Interactive: Comparing Plans (New York Times - 11/23/11)
- Ignoring Sequestration Won't Make it Vanish (Washington Post - 3/9/12)
- School Districts Wary of Federal Funding Fight (Education Week - 3/15/12)







