Agencies set up plans to manage cuts if Congress, Obama fail to reach deficit deal

Federal agencies are sharpening their plans to carry out drastic, automatic spending cuts starting Jan. 2 if the Obama administration and Congress cannot agree on a deficit reduction strategy in the coming days.

Some agencies envision furloughs for federal workers, while others are mapping out a course to slow hiring and outside contracting and put programs on hold if the across-the-board reductions known as a sequester kick in. For millions of Americans, the “fiscal cliff” would mean immediate tax hikes, but for federal employees it also signals big adjustments as their agencies absorb deep spending cuts — set by law at $1 trillion over 10 years.

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The public would quickly feel the effects, from weaker drug interdiction efforts to less energy assistance for low-income families.

The Office of Management and Budget asked civilian and defense agencies this week for detailed what-if lists of what they would cut. But many managers have been quietly preparing worst-case plans for months, having grown painfully familiar with uncertainty after a near-government shutdown last year and a slew of stopgap budgets.

The federal courts, for example, would close some district courts one day a week, impose furloughs of up to four weeks and reduce the hours of security guards. The system would face a $555 million loss next year under an 8.2 percent cut to domestic agencies.

“We’ve all developed this master plan that nobody hopes we’ll have to enact,” said David Sellers, spokesman for the administrative office of the federal courts. A judicial committee began meeting shortly after the Budget Control Act was enacted in 2011 to decide where to cut, balancing furloughs with delayed trials.

“They’ve taken it very seriously and methodically,” Sellers said.

The Nuclear Regulatory Commission assured employees in November that no furloughs or layoffs are planned. Instead, to save money, outside contracts would be stretched out or stopped. The National Park Service has slowed some hiring for the tourist season, a strategy that advocates and former park officials said would have to continue in January.

The Defense Department is likely to impose an immediate hiring freeze on its civilian workforce, said a spokeswoman, Army Lt. Col. Elizabeth Robbins. Some furlough notices, rather than layoffs, would begin within a few weeks, she said.

And public employee unions are dusting off their manuals on when to call for bargaining with management over unpaid furloughs, which would probably be forced on thousands of employees.

“Nobody knows what’s going to happen with the fiscal cliff,” said Danette Woo, special park uses coordinator at the Mojave National Preserve in San Bernardino County, Calif. “What happens is totally out of our control, but it affects our ability to get our job done.”

Park managers have prepared a “budget constraint” plan that calls for layoffs of seasonal employees and program cuts, Woo said. Like other agencies, the Park Service in recent months has slowed hiring, travel and training.

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