A Creighton University economist doesn’t expect the sequester will have widespread negative impacts on the regional economy.
President Obama and Congressional leaders were unable to work out a deal Friday to prevent the $85 billion in spending cuts from taking effect over the next seven months. Creighton University economist Ernie Goss says the sequester will affect some parts of the Nebraska economy, but he doesn’t expect a severe impact.
“In Nebraska, the food processing is of course somewhat challenged. Certainly as the President said with sequestration you take meat inspectors out of the meat production facilities that would certainly have some negative impacts. On the plus side, businesses tied to agriculture continue to do relatively well.”
Goss says the sequester cuts will also affect air transportation and TSA inspectors at airports.
In a news release issued Thursday, the U.S. Department of Education said Nebraska’s education system would lose $3.6 million in Title 1 funding because of the sequester.
Goss oversees a monthly survey of business conditions in nine Midwest and Plains states. The February survey, released Friday, showed 35 percent of supply managers expected the sequester would impact their business.