Even if Congress and President Obama avoid the so-called fiscal cliff, a compromise may include cuts that could affect community colleges.
The fiscal cliff comprises a worst-case scenario by year’s end that could throw the economy into a downward tailspin—the expiration of popular tax benefits on Dec. 31 and a looming “sequestration,” which would kick in on Jan. 2 if lawmakers don’t hammer out a deal to rein in federal spending.
The sequestration calls for across-the-board cuts to most non-defense discretionary programs. While Pell Grants would be exempt in fiscal year 2013, other education and workforce training programs would see an 8.2-percent cut, including TRIO, GEAR UP, Perkins career and technical education, adult education, Trade Adjustment Assistance Community College and Career Training (TAACCCT) grants, and Workforce Investment Act programs, among others. (Read more.)