WCAX.COM Local Vermont News, Weather and Sports-Debt ceiling could cost Vt. tens of millions

Debt ceiling could cost Vt. tens of millions

COLCHESTER, Vt. (AP) - Budget analysts in Vermont say the new federal debt ceiling law will likely mean the state will have tens of millions of dollars less to spend on education, health care, law enforcement and transportation programs.

But officials say it will be some time before the details will be known.

Nationally, the debt ceiling law calls for $2.5 trillion in federal budget reductions over the next 10 years.

Initially, savings will be the result of level funding of most federal programs and eliminating adjustments for inflation. A second round of cuts could reduce spending on a wide variety of programs.

Paul Cillo of the Public Assets Institute tells Vermont Public radio Vermont lawmakers will have to debate which services can be offered and which will be eliminated.

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