Friday, May 24 2013 10:11 AM EDT2013-05-24 14:11:09 GMT
Two restaurants and a market deli had their reinspections. More >>
Two restaurants and a market deli had their reinspections.More >>
HUNTSVILLE, AL (WAFF) -
Congress' deal on the
fiscal cliff leaves the Tennessee Valley still hanging on the threat of severe
The U.S. House approved a
bill to raise taxes and extend unemployment benefits, but the vote merely
delayed a series of deep automatic spending cuts which were due to kick in.
The threat of those cuts
raised alarms in North Alabama where military contracts are a crucial part of
"I would characterize
it as a delay in the firing of the shot," said CEO of DESE Research, Wally
Kirkpatrick said for his company,
watching the countdown to sequestration and the fiscal cliff has been tense and
not conducive to launching new projects or creating jobs.
"The uncertainly what
the president's going to do and the congress is going to do in terms of how to
allocate the cuts and all of that keeps industry frozen," said Kirkpatrick. "They're
cautious. They spend as little as
possible. They hire as few new people as
they can get by with."
The sequestration plan
called for across the board spending cuts, including $55 billion this year in
The fiscal cliff deal puts
off a decision on those cuts for two months.
Defense Secretary Leon
Panetta who said the cuts would devastate national security now says,
"Had Congress failed
to act, I would have been required to send out notice to our 800,000 civilian
employees that they could be subject to furlough. (…) Unfortunately, the cloud
of sequestration remains."
Kirkpatrick said the
breathing room is nice but he expects the debate to get even more fierce and
complicated as congress debates not just budget cuts, but raising the national
"You're going to see
some real donnybrooks between now and the end of the next 60 day period as we
begin to address raising the federal debt ceiling and allocating these
Kirkpatrick said he
remains hopeful there will be a deal to mitigate the worst of the sequestration
Long term, he said any
answer to the anxiety suppressing businesses and jobs may have to wait until
the election in 2014.