Sequestration Hits Hawaii Civilian Defense Workers Hard With Furloughs

Starting July 8, 2013, more than 14,000 civilian defense workers throughout the state of Hawaii will be forced to take one furlough day per week due to sequestration.  This 20 percent pay cut is part for the federal government's plan to reduce spending by $80 billion.  The exact total cost to the state of Hawaii is still unclear as government agencies scramble to secure other sources of funding.  One estimate believed that the furloughs would cost the state's economy approximately $134 million, but others believe that number may be significantly higher.

It is also unclear how long sequestration and furloughs will last.  While this current round is scheduled to end in September, there is a good chance that it would be extended past that.  Many economists believe that 2014 would be an even tougher year for federally funded projects and departments and worry that some departments may decide on layoffs as opposed to furloughs.

Source: Honolulu Star Advertiser, 6-23-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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