This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Business Owners Still Struggling After Budget Cuts


NEW YORK (AP) â¿¿ LaJuanna Russell has lost a third of her revenue and about half of her staff to federal budget cuts.

"It has been just a very difficult year," says Russell, whose management consulting firm, Business Management Associates, has had contracts with federal agencies including the Pentagon and the Departments of Homeland Security and the Interior.

The budget cuts, known as sequestration, slashed Russell's $3 million in revenue by $1 million. Her staff of 25 is now down to 13.

Bob and Bonnie James saw every one of their company's existing federal contracts, including training work for the Army, Marines, Air Force and the government-funded Cherokee Nation Hospital, canceled when the cuts hit. The sequester erased tens of thousands in revenue and stamped out hiring plans.

The $85 billion in budget cuts officially began March 1, but owners like Russell started feeling the impact last summer. Government employees cut contracts in advance, anticipating that they'd lose funding. Among those badly hurt were businesses that provide training and consulting services that aren't considered essential. Like Russell, they've had to lay off workers as their revenue plunged.

There is some hope. Small business owners may get a boost from so-called 'use-it-or-lose-it' federal spending as the end of the government's fiscal year â¿¿ Sept. 30 â¿¿ approaches. Some report that they are hearing from agency contacts that they haven't spoken to in months.

But end-of-the-year spending won't reverse the pain that contractors like Russell and Bob and Bonnie James have felt. The budget cuts have hurt them professionally and personally and have forced them to make tough decisions.


Business Management Associates helps employers, including government agencies, come up with more efficient ways to get work done and assists with human resources issues. Under one contract, the company created a staff recruitment plan for the Department of Homeland Security. The Alexandria, Va., firm also provided support as the plan was carried out.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs