Natural Gas Bill Could Have Big Impact on Texas

(Note: This article was published by the Texas Tribune here.)

WASHINGTON — Already the country’s leading natural gas producer, Texas could see the industry expand even further in the state under a proposal approved Wednesday by a U.S. House subcommittee. But critics of the measure say that there are environmental concerns that should not be cast aside.

H.R. 1900, approved by the U.S. HouseCommerce and Energy Committee’s subcommittee on energy and power, would require federal agencies to accept or deny an application for new natural gas pipeline projects within 12 months of the initial request. If 12 months pass without any decision, pipeline applications would be automatically accepted. Previously, there was no set timeline for when a permit would be granted.

“The legislation simply gives companies looking to invest in a gas pipeline infrastructure some degree of certainty regarding how long a permitting process will take,” said U.S. Rep. Mike Pompeo, R-Kansas, author of the measure, which now goes to the full Energy and Commerce Committee.

The measure has big implications for Texas, which accounts for about a quarter of U.S. natural gas production, according to the U.S. Energy Information Administration. According to the administration, Texas has 163 natural gas production plants, a number that could grow with the help of the measure.

U.S. Rep. Joe Barton, R-Ennis, said that both consumers and producers would benefit if the bill becomes law.

“Rising demand for natural gas is outpacing the capacity of our aging pipeline infrastructure,” Barton said in a statement. The bill would “promote investment in pipelines thereby increasing access to affordable and reliable gas.”

But critics are worried that expedited licensing could impact environmental safeguards that are already in place.

Luke Metzger, director of Environment Texas, said he is concerned that safety and health protections may be thrown aside in the industry’s eagerness to expand markets abroad. He specifically cited that further analysis is needed regarding hydraulic fracturing, also known as fracking, a process that uses a mix of water, sand and chemicals to break through shale rock to obtain oil and gas. Metzger said the chemicals can seep into air, water and soil and are often blamed for pollution in and around drilling areas.

“If we’re exporting it, we’re keeping all the pollution and sending the product elsewhere in the world,” Metzger said.

Proponents of the measure say that health and safety protections are in place and won’t be compromised. They also say that the Federal Energy Regulatory Commission already examines natural gas pipeline projects for safety. They said the focus of this bill is on efficiency with the process.

State Rep. Jim Keffer, R-Eastland, the chairman of the House Energy Resources Committee, who sponsored similar legislation in the House, is optimistic that the U.S. House measure would benefit Texas’ natural gas industry. Still, he hopes that efficiency does not trump the environment.

“You have to balance out what is good for the economy versus what the effect on citizens and the environment is,” Keffer said. “It is a balancing act. One can’t take precedent over the other so much.”

While H.R. 1900 focuses on natural gas pipelines within the contiguous United States, it could impact liquid natural gas, which is exported abroad and has significant demand in the world market. The legislation would thus not only have the potential to help facilitate the construction of natural gas plants, but it could also similarly help with the creation of new liquid natural gas plants as well.

In a statement, U.S. Rep. Gene Green, D-Houston, a member of the subcommittee, said he was concerned about unintended consequences of the legislation. “For example, agencies may deny the permit because they lack sufficient time for an adequate and legally defensible review.”

NPR’s Latino USA: “Cutting Chicago Schools”

Though this page may seem otherwise, life will tell you that I have barely been sleeping, reporting like never before, and working harder than ever. I am getting to know this crazy business and am loving every second of it. Sure, it means I’ve had to do away with that magical fantasy of time off that I had when I started this quarter, but then, opportunities like this emerge.

http://www.futuromediagroup.org/lusa/2013/05/17/cutting-chicago-schools/

Yeah, that’s right: along with my partner, Paige Sutherland, and colleagues, Ananth Baliga and Lisa Carter, I produced a piece for NPR’s Latino USA on Chicago’s decision to close 54 public schools. This was an exciting opportunity made possible by the amazing strength, dedication, and knowledge of our professor, Cecilia Vaisman. For anyone who knows me, working with NPR is a chance that I never thought was possible – and yet, here it is.

Feedback/comments welcome. And more articles to come in the coming weeks.

Spring break update

After a strenuous winter quarter, I’ve been rewarded with a week off to re-energize my batteries. Ah, spring break. If only you were a real concept in the real world.

Not that I’ve taken a week off. Sure, I’ve caught up on a couple books on my endless list of reads, traveled north to see my sister, and caught up with friends near and far. I’ve dabbled in some cooking, pretended to be a photographer, and gone for runs in preparation for my upcoming half marathon.

But I’ve also been writing – about something completely unrelated to the public finance issues so close to my heart (this line, dear reader, is a genuine sentiment, no matter how sarcastic I may otherwise be).

I’m super excited to announce that I am managing social media and content for luxemi.com, a Chicago-based Indian fashion e-commerce startup. I’ll be posting on behalf of Luxemi’s Facebook, Twitter, and Pinterest, plus blogging about the latest trends in Indian/global-inspired fashion. Stop by for some snarky and fun commentary!

Happy spring break! I’ll be back next week with updates on my next onslaught of reporting (which, by the way, has me ecstatic about this upcoming quarter!).

Young female veterans find jobs elusive

Operation Iraqi Freedom veteran Jennet Posey is part of a growing population of female veterans who can’t find a job that matches her skills.

As a 30-year-old veteran with a master’s degree, prestigious internships under her belt, and stellar grades, Jennet Posey would seem to have employers fighting for the chance to hire her.

But Posey, who returned from a stint in Iraq in 2004, is underemployed and working as a housekeeper at the Jesse Brown VA Medical Center in Chicago.

“It’s not good enough,” said Posey of her experience. “I’m so mad. I’m still just out here. I’m so frustrated.”

It took Posey several months to even land the housekeeping job, which she keeps so she can be independent.

Returning veterans have historically been plagued by chronic unemployment and underemployment. But for women returning from the latest conflicts in Iraq and Afghanistan, the numbers are astonishingly high–a disconcerting fact considering female veterans are fast rising in numbers.

Seventeen percent of female veterans are unemployed, compared to 11 percent for their non-veteran counterparts, according to the National Center for Veterans Analysis and Statistics. Female veterans also have an increasing rate of poverty, 10 percent in the most recent report, – an unprecedented statistic.

Celia Renteria Szelwach, founder of the Women Veterans Network in North Carolina, thinks a combination of socioeconomic factors are to blame.

“There’s a number of reasons why women veterans are unemployed or underemployed,” she said, pointing to transitioning from military to civilian work, health and education as primary factors.

A troubling trend

For young female veterans like Posey, the job search can be excruciating, and finding any job, let alone one that matches professional qualifications, is daunting.

“I don’t know what I have to do,” said Posey, who has a journalism degree from Columbia College in Chicago and a master’s from Southern Illinois University in Carbondale. “I mean, it pays more than my unemployment but it’s like, I don’t care about that. It’s just so frustrating. I’m at a loss.”

In fact, in 2009, female veterans classified as “young women veterans,” or those between the ages of 17 and 24, were 50 percent more likely to be unemployed than their civilian counterparts, according to the National Center for Veterans Analysis and Statistics.

Szelwach, a former captain and paratrooper who served in the U.S. Army from 1990-1995, recently published an article exploring female veteran unemployment trends in rural areas.

Rural areas have been particularly hit hard, said Szelwach. Manufacturing plants that would have otherwise accepted workers without a college degree have shut down as the country has transitioned to being more service-oriented.

Female veterans seeking jobs are also hampered by a lack of a support system, said Szelwach.

“With this generation, there is no emphasis on developing networks outside the military,” said Szelwach. “Access to network and people working in the industry is absolutely essential” for making the first step towards connecting with an employer for an interview.

There are also a multitude of health issues affecting this recent crop of veterans. “Their first need is to get themselves healthy. When they are healthy, they can get gainful employment,” said Szelwach.

Perhaps the biggest obstacle female veterans face in getting employed is education. Though grants are available to provide funding for education, female veterans often must balance lost time with childcare in their role as primary caregiver.

“If you’re a young female veteran who is a junior enlisted soldier, you probably haven’t had time to go to school to get your degree, “observed Szelwach.

“In the current marketplace, many front end jobs require a bachelor’s degree, putting the female veteran at a disadvantage.”

A generational disconnect?

Data suggests that older female veterans, particularly those who served in the first Gulf War of the 1990s, don’t feel the direct effects of unemployment as much.

Persian Gulf War veteran Michelle Malone believes the economic issues facing veterans is due to the recession –not necessarily discrimination.

“I think it has a lot to do with the economy and what’s going on in the world,” said Malone. “If we weren’t going through the economic struggles we were going through, it would have been easier for a veteran to find a job.”

Malone doesn’t think that a stigma exists. In fact, she thinks being a veteran provides a leg up in the selection process.

“If you have a veteran looking for a job without a mental or social issue and if they had a bachelor’s degree like a civilian, they have a better chance [at getting a job],” she said.

She may have a point.

According to the VA, 76 percent of female veterans are employed, compared to 71 percent of non-veteran women. Employment rates would be arguably higher when considering that females in general have higher rates of taking off from work to raise children, being disabled, and/or pursuing higher education.

Not so for Evan Aviles, 29, a veteran of Operation Iraqi Freedom. “I think the biggest [obstacle] was understanding, not discriminatory,” she said. “I think they didn’t know how to approach the topic or how to understand the work. It was difficult for them to understand what I did [in the military].”

Aviles, who worked on Army training manuals initially sought work in an administrative capacity but found some initial hurdles.

“No matter how much schooling we did and how much education we got, it was really difficult for us to get out. The stigma that there is of being veterans, especially in the last generation of veterans – it’s prevented people from seeing beyond that.”

Help

Social programs are available to help female veterans transitioning from military status to civilian life.

“Grants determine the amount of support [veterans] receive,” said Malone. “We have a homeless veterans reintegration program and some assist with employment and resume building. If they’re lacking essential computer and interviewing skills, we provide that for all veterans.”

But Szelwach believes  employers should do more.

“Employers have a responsibility to look at some of these jobs and see whether this person really needs to have a bachelor’s degree  to perform effectively in this position,” said Szelwach. “Can someone who has been performing very effectively in the military and under a lot of stress for their country – can they perform this role?”

Posey will keep working as a housekeeper while she continues her job search.

“I’m not saying ‘Give me the job,’” she said. “If you meet the minimum qualifications, you should at least be granted an interview to have a shot at it.”

Universal Sole runs with a different herd

Universal Sole from Tanya Basu on Vimeo.

Universal Sole at 3052 N. Lincoln Ave. started off as just another running store in Lincoln Park. But its calendar of running events, wide selection of shoes and notoriously friendly staff have earned the store a loyal fan base.While venturing into a running store can be an intimidating experience for newbies, store owner Joel Feinberg has come up with a delicious recipe to calm their jitters: burgers, beer and buddies.

“It’s not a recipe for rocket science,” Feinberg notes. “You come here, you run. Afterwards, you head over to the local bar, Fizz, and Goose Island gives us our first round of drinks free. They run a burger special, and we just hang out all night. We do that one Monday a month.”

In fact, camaraderie is a central part of the store’s running programming – and the secret to how it has built a fan following. Besides the popular burgers and beer runs, Universal Sole hosts Saturday morning Pilates and Pancakes events (with pancakes being cooked fresh on the griddle by Feinberg’s daughter) and neighborhood- themed five-kilometer runs that pass by local cultural landmarks.

“We try to make [events] pretty simple but effective enough for people to come out and have some fun,” Feinberg said.

Heather Williams values the importance the store places on connecting with others.

“When you have a group of peers, it’s nice to see them every week and shoot the breeze and go for a run and come back,” the 30-year-old said.

The personalized service is also a major pull factor.

“I think what really makes it different is that the people who work here really care about you,” Williams said. “They’re friendly with everyone and they’re very warm and welcoming. I’ve had run-in at some other stores where the sales associates were really rude and wouldn’t help whereas here, they’re like, ‘Hey, how’s it going? Let me know if you need any help!’”

As he laced up his shoes for a fun ran and chatted with other runners, Sean Butler, 40, agreed. “The service is better here. They know you right when you walk in. It makes a big difference.”

That’s the kind of bond Feinberg has worked hard to build. “Really, what I feel sets us apart from anybody else is that we’re really deep in our community here.”

A lifelong passion for running

Ever since Feinberg can remember, he’s been running.

“I’ve been running a long time, basically since the age of 6 years old,” Feinberg said. “That’s how I entered the business: my mom used to take me out for runs.”

Feinberg’s parents played a big role in shaping his dream of one day owning a running store–his earliest memories involve jogging with his university professor mother. His father was an engineer who owned his own business.

While at Glenbrook North High School, Feinberg began working at area running stores. That was where he first began considering a career in running retail. But he didn’t take these thoughts seriously at the time.

“Of course, when you’re in high school, you’re like, ‘Yeah! That’s what I want to do!’” Feinberg laughed. “But then you go to college, you start jobs, things sort of change.”

“I always thought I was destined to work for myself,” Feinberg reflected. It was the appeal of being your own boss [and] putting in time and effort for yourself. [But] I just wasn’t ready to make a move into small retail.”

Feinberg attended Indiana University and graduated in 1997 with a marketing degree. He topped that off with a master’s degree in marketing communications from the Illinois Institute of Technology. Feinberg followed a fairly traditional path working in marketing with sports brands such as Clif Bar, Glaceau Vitamin Water and Red Bull.

But Feinberg was itching to run again.

In 1998, he joined Universal Sole’s original running team. Friends with the original owner of the store, Feinberg ran competitively with the store, establishing a deep-rooted interest in the store’s outcome and valuable connections with the Chicago running community.

Feinberg seemingly had it all: a steady corporate job, a family and a future bright with endless possibility. But he still felt that he wasn’t living his dream.

“It got to a point where I needed to decide if I needed to stay in a corporate career or if I wanted to move into owning my own business,” Feinberg said. “It’s one of those things where I didn’t want to look back and think, ‘What if I bought the store?’”

Feinberg jumped in, taking over Universal Sole in 1998 when the former owner decided to leave the business.

“I love working for myself,” Feinberg said, acknowledging that a corporate career allowed him to have clearer separation between his personal and professional lives. “I probably work 10 times harder. You’re always ‘on.’ At the end of the day, no one’s going to put in as much blood, sweat and tears as you are.”

“I make a lot less money, I work harder, and I haven’t loved a job more. What I saw in my parents, I would like them to see in me, which is: do what you love, don’t just do what people want you to do or that path that people want you to take.”

“It makes a big difference”

Even so, dedication and good service doesn’t guarantee success in small business, and the Independent Running Retailer Association, the trade group for run specialty shops, rates the city of Chicago as the most competitive running store market in the country.

On the other hand, the sport of running is seeing a boom with nary a slowdown in sight. In fact, running stores have seen healthy growth nationwide thanks to a slew of themed races that have attracted runners who would normally not have considered the sport.

According to the National Sporting Goods Association, the population of people who run six or more days a week grew 9 percent to 38.6 million in 2011, the latest numbers available. Not surprisingly, sales of running shoes also are on the rise, reaching $2.5 billion in 2011.

Universal Sole’s sales have followed suit, shooting up 15 percent in 2012 from 2011, according to Will Bridge, the store’s general manager. While he declined to provide a precise revenue number for Universal Sole, Bridge did say that a target for similar one-store operations is about $750,000 in yearly sales.

Things weren’t always so rosy though. The recession presented a double-edged sword to Universal Sole–while more customers were switching to the great outdoors as their gym of choice, fewer people wanted to spend on specialized accessories.

“When I took this place over five years ago, the economy hit the tank. We hit the recession right as I took this place over. No bank would lend me money. You couldn’t pull equity out on your home even if you had it,” Feinberg remembered.

Despite those challenges, Feinberg says he was able to quadruple sales in the first two years of his ownership.

So far, 2013 is looking extremely promising. A second location of Universal Soul is set to open in the South Loop in April and will feature an in-house physical therapist who also happens to be Feinberg’s wife.

Feinberg is ecstatic about the store’s growth.

“With the new store, we’re excited because that has a lot of potential and new things that we can do programming-wise that we can do that we can’t do here. I would say that we’re coming into the final mile of our marathon,” he grinned.

Green Chicago

This quarter, I took a course titled digital storytelling, a class that intersects technology and journalism. Our assignment? Create a basic site exploring a Chicago-centric topic. My colleagues (Robyn Murray and Lyndsey Gilpin) and I decided to explore urban gardening – not the easiest topic to tackle in the dead of a Chicago winter, but it gave a welcome respite to experience some greenery when the entire world seemed to have forgotten this magical, invigorating hue.

Here’s the site: http://www.medill.us/405-13WN/final/UrbanGardens/index.html

All photography, video, and audio is our work unless otherwise specified.

(P.S.: It’s the first time any of us have tinkered with html code and created multimedia storytelling, so I’m particularly proud.)

Any reviews/comments would be greatly appreciated – integrating various platforms is the future of journalism, and I would love to enhance my knowledge in this area.

American Eagle underwhelms

American Eagle Outfitters turned in a third straight quarter of profit, but spooked investors with a downbeat profit forecast.

Shares of American Eagle Inc. tumbled Wednesday after the teen fashion retailer turned in fourth-quarter results that were roughly in line with expectations — but offered a downbeat forecast for the current quarter. 

For the quarter ended Feb. 2, the company reported net income of $94.8 million, or 47 cents per diluted share, compared to the year ago quarter’s net income of $51.3 million, or 26 cents per share. Revenues rose 8.6 percent to $1.12 billion from $1.03 billion. 

The latest quarter was skewed by a number of special items; excluding unusual items, officials said, per-share earnings were 55 cents – one penny short of the 56 cents analysts surveyed by Yahoo Finance had been expecting. 

That earnings miss was a relatively small matter. But Wall Street was more concerned with a profit warning company officials provided: American Eagle said it now expects per-share earnings in the current first quarter to be in the range of 16 to 19 cents –- well below the 25 cents analysts have been expecting. 

Disappointed investors responded with a selloff that sent American Eagle shares down $2.30, or 10.1 percent, to close Wednesday at $20.27. 

American Eagle reported lower-than-expected earnings Wednesday, leading stocks to dive.

 

CEO Robert Hanson blamed mall traffic, which he said was “not robust.” 

Over the past year, American Eagle shares have strongly outperformed those of specialty-retail rival Abercrombie & Fitch, and some experts remain convinced Eagle can recover its momentum. 

Growth is still in the cards for the Pittsburgh company, according to PiperJaffray analyst Stephanie Wissink. “We continue to be encouraged by longer-term prospects to… yield greater profitability on steady sales,” she said. Among other things, the analyst said, American Eagle’s international markets “present viable growth opportunities.”

The Business Week in Review (Feb. 26 – Feb. 28) Podcast

Groupon gets rid of CEO Andrew Mason, the countdown to the sequester has begun, Sears is stuck in a slump, and we take a look at consumer confidence.

This podcast was co-hosted with Jessica Soberman.

Spending cuts creating risks for travelers?

Cancelled flights may become more frequent should the sequester occur on Friday. (Photo courtesy of Anthony Valentino)

When the dreaded budget sequester takes place Friday, count on more airline delays, grumpier travelers and longer lines at airports.

That’s because part of the sequester plan proposes severe cuts to the nation’s aviation system. Many people involved in air travel– from Transportation Security Agency screeners to air traffic controllers – will be furloughed.

“This would adversely affect the traveling public and the economy,” warns Mike Claffey, communication manager with the Illinois Department of Transportation.

In a letter sent to aviation agencies Feb. 22, Secretary of Transportation Ray LaHood highlighted the effect of sequestration on the budget. “The Federal Aviation Administration is making plans to reduce its expenditures by approximately $600 million for the remainder of [fiscal year] 2013.”

The FAA is considering furloughing nearly 47,000 employees and removing midnight shifts at 60 traffic control towers. The agency also is planning to close more than 100 air traffic control towers at smaller airports nationwide. It also is looking at reducing the amount of preventive maintenance it requires on equipment.

Many of the cuts will fall on air traffic controllers, who have long complained about understaffing. Jobs will not necessarily be cut, according to Sarah Dunn, spokeswoman with the National Air Traffic Controllers Association.

“FAA officials have told us that furloughs are necessary,” said Dunn. “Furloughs will last approximately 11 to 22 days.”

Even if the sequester occurs Friday, furloughs won’t be immediate. By law, the FAA must inform the controllers’ union of the date when furloughs will start. That means furloughs probably won’t go into effect until mid-April, according to Dunn.

Currently, there are 14,752 air traffic controllers nationwide. Of those, 2,000 are in training and 3,100 are near retirement.

Dunn acknowledged that there may be a shortage of air traffic controllers should retirement become a more attractive option.

“Significant effects may occur in New York, Miami, Dallas, and Houston,” Dunn said. She declined to comment on the potential impact on Chicago.

Chicago’s O’Hare International Airport currently operates at a rate of 114 aircraft per hour, according to a report by the controllers’ union.

The sequestration will cut that by about one-third: In good weather, that would mean about 72 aircraft per hour could take off or land.

The North Tower would probably shut down, restricting all arrivals to two runways. Other flights could end up being rerouted to Midway Airport and other smaller airports.

Officials are still hoping some deal is struck.

“We have talked to the FAA since December,” said Dunn. “There has been a very open stream of communication with the FAA. We’ve been trying to educate Congress and the pubic to explain how the sequester will affect the public and economy.

IDOT spokesman Claffey also is optimistic: “[We] are hoping there will be some sort of budget deal that will avert these very severe impacts.”

Karen Pride, spokeswoman for the Chicago Department of Aviation, which oversees both O’Hare and Midway, also has her fingers crossed. “The city is hopeful that an agreement will be reached by March 1, 2013 to postpone or eliminate sequestration.”

Severe federal spending cuts to hit Friday

Democrats warn that sequester cuts could have dire economic consequences at national and state levels. (Photo courtesy of Rhyan Kronzer)

Across-the-board federal spending cuts are set to take effect in three days. Unless Congress can create a better plan, these cuts known as the sequester could hamper U.S. economic growth and negatively affect states such as Illinois, which are already on dangerous fiscal footing.

“If Congress allows this meat-cleaver approach to take place, it will jeopardize our military readiness; it will eviscerate job-creating investments in education and energy and medical research,” said President Barack Obama in a speech last week.

Cuts will slash defense and domestic spending by $85.4 billion in 2013 and $1.2 trillion during the next 10 years.

These cuts could mean increases in airport delays due to fewer air traffic controllers manning towers at O’Hare International and other major airports. Food production could slow as a result of fewer inspections and the risk of food-borne illness could rise. The Federal Emergency Management Agency may need to reduce funding for state and local grants that support first responders in natural disasters such as Hurricane Sandy.

Democrats argue that allowing the cuts to continue would have a dire effect on the national economy and state budgets. They are pushing a new plan with some targeted cuts that also calls for closing tax loopholes for wealthier Americans.

“We must act to protect the most vulnerable in our society and demand fairness in budget cuts,” said Illinois Sen. Dick Durbin in an email Monday.

Republicans insist that budget cuts are a necessity and refuse to allow any more tax increases after agreeing to the expiration of the Bush tax cuts in January.

Click here to view a timeline of how the sequestration came about.

With Congress unable to collaborate in an effective way, experts are now considering what the sequester cuts will look like for the nation and individual states.

Illinois could lose a vast amount of funding ranging from severe cuts in student aid to large decreases in public health funding, according to a White House statement last week.

About 3,280 college students would receive less federal aid to pay their tuition.

And Illinois could lose roughly $3.5 million in funds for the treatment and prevention of substance abuse and nearly $1 million to fight infectious disease and deal with natural disasters.

The state also could lose roughly $33.4 million in funding for both primary and secondary education in 2013.

Nearly $1.4 million in funding for job assistance and placement could be cut, resulting in higher Illinois unemployment, the administration said.

However, not everyone is buying the dismal picture being painted by the administration.

“The sun will come up,” said University of Chicago economics professor Allen Sanderson Tuesday. “The $85 billion sequester figure is accurate, but these cuts are spread out over the next seven months. I’m not particularly proud of the way the administration has handled this…It’s disingenuous.”

Economist David Merriman of the University of Illinois at Chicago doesn’t think Illinois is going to suffer greatly in the near future.

“Illinois is actually in relatively good shape, ironically,” Merriman said, referring to the state’s fiscal crisis. “Compared to a lot of other states, we aren’t a big location for federal spending, relative to the size of our economy. So the cutbacks in federal spending will probably hurt us a little less than the average state.”

The main effect here could be a trickle down in the long term, Merriman warned. “The result of the political gridlock is [that] the economy slows. Illinois will feel that because we export our goods to lots of other states. If there’s less of a demand for goods and services, we’ll have more unemployment here.

“The real risk to Illinois is that the sequester could hurt the national economy. We could feel the backlash from that.”

While specific cuts to state programs may not be set in stone, the dysfunction in Washington continues to erode confidence in the political system and the U.S. economy.

The National Association for Business Economics surveyed 49 economic professionals about their outlook for 2013 and 2014 in light of the impending sequestration.

Nearly 60 percent of panelists expect the sequestration to occur either in partial or full form March 1.

In the survey published Monday, forecasters predict the economy will grow by 2.4 percent in 2013 and 3 percent in 2014. However, one-third of those surveyed believe the political battles in Washington over fiscal policy may stifle growth by half a percentage point or more.

“Over 95 percent of the panelists believe that growth in real GDP in 2013 is likely to be negatively affected by uncertainty surrounding the U.S. fiscal imbalances and issues linked to the continuing resolution, sequestration, and the debt ceiling,” said Nayantara Hensel, a business professor who chairs the association’s outlook survey committee.

The sequester was a part of the Budget Control Act passed in August 2011. These cuts were designed as a last resort measure with such severe slashes to both domestic and defense programs that Congress would be forced to collaborate and cut the deficit. The sequester was originally scheduled to take place Jan. 2 but Congress pushed the deadline back until March 1.

This article was co-written with Rhyan Kronzer.