PROVIDENCE, R.I. - The much-discussed federal spending cuts known as "sequestration" that are set to take effect Friday - unless Congress acts - will not lead to "economic Armageddon" in the Ocean State.
That's the assessment from Gary Sasse, head of Bryant University's Hassenfeld Institute for Public Leadership and a former state director of administration under former Republican Governor Donald Carcieri.
He argued that some degree of short term budget pain is necessary to address the growing federal deficit, which he said is the greatest threat to the nation's long term economic prospects.
"Any cut in federal spending will have a negative short term impact on economic growth," he said. "The question that the President and Congress need to address is how best to cut the federal deficit without slowing the weak economic recovery?"
Sasse noted that, if it wanted to, the state can soften the sequester's expected hit by using part of the state budget surplus projected as much as $79 million in the current year.
Plus, he said, Congress can still reverse the cuts after Friday, since it must approve a new federal spending plan before Mar. 27, or risk a partial government shutdown.