Sequestration is upon us. The $85 billion in federal budget cuts will hurt us locally in numerous ways. This region will obviously feel defense cuts because the U.S. Department of Defense is San Diego’s largest employer. However, cuts to vital social programs such as housing will hit local families hard.
KPBS reported all non-defense programs will receive an 8 percent budget cut because of sequestration. This will impact local programs such as the San Diego Housing Commission, which received more than $160 million to subsidize housing for families last year. The program gave vouchers to 14,600 families, with each receiving a monthly subsidy of $850. This may sound like a fat government subsidy for housing, but in a city where homes sell at an average of more than $620,000 and monthly mortgage payments vary between $3,000 to $5,000, they can provide a much-needed relief to keep housing affordable in San Diego. It’s also uncertain whether this specific program will be cut equally compared to the rest of the housing programs the sequester threatens. The commission also hasn’t decided if it will be forced to cut some families from the program or cut the subsidy equally for all families that benefit from it.
The housing commission isn’t the only local housing program threatened by the sequestration. San Diegans benefit from services for the homeless, assistance for first-time home buyers and a 4 or 9 percent tax credit for low-income families. All of these are threatened by federal budget cuts. The Section 8 subsidy, which already has a waitlist of more than 28,000 locally, also faces steep cuts.
Unfortunately, these cuts seem unavoidable because of an incompetent and partisan Congress that bickers back and forth about what programs to keep or cut. Lawmakers in Washington, D.C. should take a look at the housing situation here in San Diego to see how important these social programs are. San Diego is one of the most unaffordable places to live in the U.S. In fact, San Diego ranks as the fifth least affordable U.S. city according to a study by the Center for Housing Policy. A large reason for this problem is the phenomenon known as the sunshine tax, which exists as a result of San Diego’s pleasant climate and location.
Personally, I cannot afford to live on my own in San Diego. I work two jobs, go to school and pay $550 per month for renting with a roommate. In Bakersfield, my hometown, $550 would be enough to rent a one-bedroom apartment by myself. Federal programs such as housing subsidies, tax credits and Section 8 are needed to keep San Diego from falling off the affordability cliff. Low-income families don’t always have the luxury to move on a whim. It takes time, money and a lot of job searching.
It makes very little sense to cut funding from the housing industry, especially considering Americans are still recovering from a recession that was largely caused by the collapse of the housing market. The collapse led millions of foreclosures and eventually contributed to the collapse of our financial system. A decline in the housing market also leads to a decrease in jobs, not just for real estate agents, but construction workers, whose jobs depend on the demand for building new homes.
Avoiding the sequester is important not just for the housing market and social programs, but other aspects such making sure tax returns come in on time and preventing flights from being delayed. Legislatures need to show courage. It’s time to forget about the previous election or next year’s midterm election. Lawmakers who worry only about saving themselves during election years while forgetting about what is best for the country don’t deserve to keep their seats. They need to focus their priorities on issues such as sequestration, which can hurt our fragile economy. The budget hawks should put their partisan agendas aside and realize the biggest issue is the economy, but not just the deficit. If they help the economy recover, deficit reduction will follow. Our national and local economies need a plan that will keep our economy running and avoid the pain of sequestration.
