SACRAMENTO, Calif. (AP) — Federal spending cuts are expected to dampen California’s economic recovery at a time when a housing rebound and job growth are gaining traction. But the immediate effect may not prove detrimental to the state’s economy.
The White House estimates that 64,000 civilian defense workers would be furloughed and 1,200 teaching and teacher aid jobs would be at risk in the state. But expected federal spending cuts, known as the “sequester,” will hit just a fraction of the state’s $2 trillion gross domestic product.READ MORE: Structure Fire Spreads To Vegetation In Tahoe National Forest Near Camptonville
And most of the effects won’t be felt right away. Furloughs won’t start for a month due to notification requirements and members of Congress are considering giving agencies flexibility over cuts.READ MORE: Ford Advising 39,000 Expedition And Navigator Owners To Park Outside Due To Fire Risk
Also, some of the biggest drivers of federal spending, such as Social Security and Medicaid, are exempt.MORE NEWS: Body Of John Doe Found 38 Years Ago In Solano County Identified As Sacramento Resident Norman Creech
Copyright 2013 The Associated Press.