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The Big Picture San Diego Blog


What does the fiscal cliff mean for San Diego?

January 2, 2013

 

A message from our President & CEO:

With 2013 already under way, and some elements of the fiscal cliff addressed and/or postponed through last minute actions in Washington D.C., we wanted to take a moment to share what we still foresee as significant challenges for San Diego’s economy in the months ahead.

While both chambers of Congress did eventually approve a deal to fend off certain elements of the fiscal cliff, their plan postpones decisions about sequestration; the $110 billion in spending cuts that would deeply affect the military and many other sectors of the economy that receive funding from the federal government. As we have been noting over the past year with our colleagues at the San Diego Military Advisory Council (SDMAC), here in San Diego this could most notably impact our military/defense sectors as well as the research that is the backbone of our technology industries.

According to today’s Washington Post, “The legislation, which President Obama supports but had not signed as of Tuesday night, would delay across-the-board budget reductions known as sequestration for two months, setting up likely fights in Congress over the federal debt ceiling over the same period. The fiscal-cliff deal would offset half the cost of a delayed sequestration with cuts to discretionary spending split evenly across defense and non-defense programs. The other half would come by way of new revenue raised.” 

Even when a deal is reached regarding sequestration we will still see significant reductions in funding that will have big implications for our region. These reductions could have far reaching impacts to workforce, infrastructure, and research.  In the days ahead we will continue to provide you with the best and most up-to-date analysis we can on what all this will mean for our economy. In the meantime, we wanted to remind you all of the layoff support and aversion services that EDC, Manpower, San Diego Workforce Partnership and all of the sub-regional EDCs (North, South and East) can provide to companies that are faced with staffing reductions.  All of these services are free to the business community and are available year-round.

For any companies you may know of that are currently filing WARN notices, informing staff of possible layoffs and/or in the midst of downsizing, please forward them to our website to learn more about the Rapid Response services available to them.

In all ways we look forward to a strong and productive 2013 for our region. Together, by being informed and prepared, we can stand strong in minimizing the impact of sequestration to our economy and in developing new plans for job creation, industry growth and economic prosperity.