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April 26, 2013: Forest Service Chief Tom Tidwell testifies on Capitol Hill 
in Washington, before the House Appropriations Committee, subcommittee on 
Interior, Environment, and Related Agencies budget hearing on forest service.APWASHINGTON 
 The U.S. Forest Service is in the business of preventing fires, 
not starting them.Yet the agency set off alarms in Congress and state 
capitols across the West by citing the automatic spending cuts as the 
basis for demanding that dozens of states return $17.9 million in federal 
subsidies. And it's all come down to a bureaucratic squabble over whether 
the money is subject to so-called sequestration because of the year it 
was paid -- 2013 -- as the Obama administration contends, or exempt 
from the cuts because of the year it was generated -- 2012 
-- as the states insist.Right now, it's a standoff heightened by history 
and hard fiscal realities. But with taxpayer cash scarce, both sides are 
digging in: The Forest Service has to slash 5 percent of its 
budget under sequestration. The states, meanwhile, have depended for decades 
on a share of revenue from timber cut on federal land. Perhaps 
least willing to compromise are members of Congress who are up for 
re-election next year and are loath to let go of money that 
benefits potential voters back home.It's not clear who gets to decide or 
whether the question ends up in court. But lines have been drawn."We 
regret having to take this action, but we have no alte
uch better than in the previous quarter. 
Economists worry, though, that federal spending cuts and higher Social Security 
taxes could hurt the economy. And new requirements under the federal health 
care law may be causing some small and midsize companies to hold 
back on hiring.The Associated Press contributed to this report.April 11, 
2013: Kathie Maiello of Any-Time Home Care, left, talks with Jashod Chaney 
of Albany at the Dr. King Career Fair at the Empire State 
Plaza Convention Center, in Albany, N.Y.
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