Oak Ridge Today

Federal spending cuts affect special education program in Oak Ridge

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Federal funds to Oak Ridge Schools could be cut five percent starting July 1 under the so-called sequester, and that’s led to staff reductions in the special education program.

Four positions would be cut at Oak Ridge High School and three elementary schools—Glenwood, Linden, and Willow Brook—under a budget approved by school board members on second and final reading Thursday. Two of the reductions would result in job losses. One is a teaching assistant position at Linden, and the other is a teaching assistant job at Oak Ridge High School.

Parents with children in the program have said they are concerned about how the students might struggle if they don’t continue to get the one-on-one help they need. [Read more…]

Sequester scenarios: DOE contractors in Tennessee could furlough 1,400, lose $90 million

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Daniel B. Poneman

Daniel B. Poneman

The federal funding cuts that went into effect March 1 could result in 1,400 furloughs or layoffs for U.S. Department of Energy contractors in Tennessee, an official said this week. The furloughs could start as early as April 1.

There could also be spending reductions of about $90 million for DOE contractors in the Volunteer State, DOE Deputy Secretary Daniel B. Poneman said in a March 5 letter to Tennessee Gov. Bill Haslam.

Funding for contractors at the Y-12 National Security Complex in Oak Ridge could be cut by roughly $41 million, and more than 1,000 contractor employees could be furloughed, Poneman said.

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Alexander: President failed to lead on spending cuts; ORNL, UPF should be shielded

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U.S. Senator Lamar Alexander

Lamar Alexander

U.S. Senator Bob Corker

Bob Corker

U.S. Sen. Lamar Alexander on Thursday said the automatic federal spending cuts going into effect today demonstrate a failure of presidential leadership.

The senator also said he would like to minimize the impact of the cuts on important government institutions such as the Oak Ridge National Laboratory, student loans, and the proposed Uranium Processing Facility at the Y-12 Security Complex.

Congress and the White House approved the automatic, across-the-board cuts in discretionary and defense spending— known as sequestration—about 18 months ago in the Budget Control Act of 2011. Considered unpalatable by many, the cuts were meant to encourage Democrats and Republicans to compromise on deficit reduction efforts.

That hasn’t worked.

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Sequester scenarios: $100 million in funding cuts at ORNL, furloughs at Y-12

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Chuck Spencer

Chuck Spencer

Operating costs have already been cut by 7 percent at Oak Ridge National Laboratory, and all employees are expected to report to work on Friday, even if automatic federal spending cuts go into effect at midnight.

The federal cuts could reduce lab funding by 5 percent to 8 percent, ORNL Director Thom Mason said. That could translate into $70 million to $100 million in funding cuts, depending upon how the reductions are allocated.

Meanwhile, at the Y-12 National Security Complex, the automatic spending cuts could lead to furloughs, or temporary layoffs. Democrats on the U.S. House Appropriations Committee have said between 700 and 1,000 employees could be furloughed for up to six months.

But in a Feb. 14 message to employees, B&W Y-12 General Manager Chuck Spencer did not say how many employees might be affected.

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Sequestration could lead to $23 million in budget cuts at TVA

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The automatic federal spending cuts set to start taking effect Friday could result in $23 million in budget cuts at the Tennessee Valley Authority, a spokesman said Wednesday.

But the federal spending cuts—also referred to as sequestration—would probably not lead to temporary layoffs at the public utility, TVA spokesman Duncan Mansfield said. The federal cuts would trim $85 billion from defense and domestic spending for the rest of the fiscal year.

“We anticipate that we would not have to do furloughs, and we would be able to manage that through head count attrition,” Mansfield said. “At this point, we are not seeing an immediate impact.”

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Spending cuts could lead to Y-12 furloughs, ORNL reactor shutdown

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Y-12 National Security Complex

Y-12 National Security Complex (Submitted photo)

A report released Wednesday said the automatic federal spending cuts set for March 1 would require furloughs at the Y-12 National Security Complex and a shutdown of the High Flux Isotope Reactor at Oak Ridge National Laboratory.

The report was issued by Democrats on the House Appropriations Committee.

It said Y-12 would have to furlough 700-1,000 of its 4,500 employees for up to six months, and there would be hundreds of layoffs at national laboratories, universities, research facilities, and private sector companies that rely on grant funding from the U.S. Department of Energy’s Office of Science for energy research, the report said.

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House also passes ‘fiscal cliff’ deal, but Tennessee representatives oppose it

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U.S. Representative Chuck Fleischmann

Chuck Fleischmann

Less than 24 hours after the U.S. Senate overwhelmingly approved it, the U.S. House passed legislation late Tuesday night to avoid the so-called “fiscal cliff,” but seven Tennessee Republicans and one Democrat opposed it.

The bill, which now goes to President Barack Obama for his signature, averts income tax increases for most Americans and temporarily delays large across-the-board spending cuts to defense and domestic programs.

However, the Associated Press reported most Americans will still end up paying more federal taxes in 2013 because the legislation did not renew a temporary 2 percent cut in the payroll tax. That reduction was worth about $1,000 to a worker making $50,000 a year.

U.S. senators Lamar Alexander and Bob Corker, both Tennessee Republicans, voted for the bill in the Senate, where it passed 89-8 early Tuesday morning. Alexander and Corker said the legislation, reached after weeks of negotiations between the White House and Congress, “rescues” 99 percent of Americans from a tax rate increase.

But all seven Tennessee Republicans in the U.S. House, including Rep. Chuck Fleischmann, voted against it. The vote in the House was 257-167.

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Alexander, Corker vote for ‘fiscal cliff’ deal

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U.S. Senator Lamar Alexander

Lamar Alexander

U.S. Senator Bob Corker

Bob Corker

U.S. senators Lamar Alexander and Bob Corker voted in favor of a “fiscal cliff” deal early Tuesday morning that would allow tax rates to rise only for wealthy Americans while temporarily suspending sweeping federal spending cuts.

The deal was approved 89-8 in the U.S. Senate but still has to be passed by the House. Approval there is not guaranteed.

The agreement would raise tax rates for individuals who earn more than $400,000 and couples with incomes of more than $450,000. It would also extend unemployment insurance for another year and temporarily delay $110 billion in across-the-board spending cuts to military and domestic programs.

Alexander, a Tennessee Republican, released a statement after the 1:39 a.m. vote early Tuesday, New Year’s Day. The vote could help the nation avert the so-called “fiscal cliff,” a package of automatic across-the-board spending cuts and tax increases scheduled to start going into effect this month.

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With ‘fiscal cliff’ looming, ORNL says it’s as well-prepared as it can be

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As President Barack Obama and House Speaker John Boehner continue their high-stakes negotiations over tax revenues and spending cuts, officials at Oak Ridge National Laboratory say they have prepared as best they can for automatic spending cuts that could go into effect in January.

“We have been preparing for increased budget pressures for several years now and have taken a number of steps to reduce our costs, including workforce restructuring, benefits changes, reduction in energy consumption, and other operational costs,” ORNL Director Thom Mason said in a statement Monday. “Since we don’t know exactly how any cuts would be allocated by the various governments agencies that fund ORNL, we can’t really say with certainty what the impacts would be, other than to say we are as well-prepared for uncertainty as we can be.”

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