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Local Economists: no worries over possible spending cuts

budget cuts
Posted at 6:36 PM, Feb 25, 2013
and last updated 2013-02-27 05:37:49-05

TALLAHASSEE, Fla. (WTXL)--Its just days before automatic spending cuts take effect.

"I think they're deliberately designing the cuts so that we notice,so that when they eventually solve the problem they can pat themselves on the back," said Holcombe.

Its an action Florida State University Economics professor Randy Holcombe said we'll see soon, if the federal government is able to avoid $85 billion dollars in budget cuts.

Holcombe says last month the government pinched money from our paychecks by letting social security payroll tax increases go into effect...he says now they're at again..

"They imposed a two percent cost on every worker in Florida so all of us are already dealing with a two percent smaller budget," said Holcombe.

The White house released this list which is pages of cuts broken down for both Florida and Georgia. the lists includes millions of dollars worth of cuts to both of the state's schools, child care, public health, economic security,and much more.

"Of course they can impose a hardship on us if they want, that's their choice, certainly the federal government ought to be able to endure a 2-percent cut without imposing major hardships on Floridians and people around the country," said Holcombe.

Its a move that Florida lawmaker Alan Williams said will be detrimental to the state.

"As we're starting to rebound and our economy is starting to improve and we see, how things are starting to move in the right direction and we need to do everything we can to ensure that our economy is as strong as it can be," said Williams, District 8 Representative.

But professor Holcombe said the worst case looks like temporary cuts to education, air traffic control, and some federal grants, but he says his gut tells him a deal will be reached.

"I don't think that we're going to see much, they'll probably reach an agreement before Friday and if they do then we'll see nothing and if not we'll probably go on business as usual and they could always retroactively restore money to the budget, said Holcombe.