Sequestration Threatens Jobs, Companies in the Tennessee Valley
HUNTSVILLE, Ala. (WHNT) – Major cuts to government funding loom for the Rocket City.
In a process called sequestration, if the government doesn’t reach an agreement by January 2nd, massive cuts will have to be made across the board.
An expert visited Huntsville to discuss the possibility with businesses today.
Professional Services Council’s Alan Chvotkin says, “Based on what I know today, sequestration will be triggered on January 2nd.”
Businesses met with an expert at the Huntsville Chamber of Commerce to discuss sequestration.
It would hit the city hard.
Chvotkin explains, “Huntsville, because of the concentration of government contractors supporting lots of agencies, [is] right up there in the impact zone.”
If the federal government can’t meet a set of terms they laid out, it will trigger deep, automatic cuts across the board. That’s bad news for government contractors.
So even though sunshine streams through the Chamber of Commerce right now, there’s a dark cloud looming, leaving businesses scrambling to protect themselves.
Chvotkin assesses, “I think we’re past the fear factor and down into the pragmatics. Companies want to make sure they understand how the law would work and how it would affect them.”
Thankfully, the city has time to prepare itself for cuts.
According to Chvotkin, “This is not a light switch process where come January 2nd, if the law is triggered, the world won’t stop in government contracting.”
The city will need to guard itself, because if experts are to be believed, big cuts are coming.