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Connecticut Defense Industry Watching for Potential Federal Cuts

As the so-called 'fiscal cliff' looms, defense contractors are waiting to see whether budget cuts could impact their industry.

 

With some $12.7 billion at stake, and an employee workforce of tens of thousands in Connecticut, defense contractors are warily awaiting Congress' action on the looming fiscal crisis. 

Industry leaders are worried about how negotiations to avoid the so-called "fiscal cliff" might affect defense spending in Connecticut, according to a report in the Hartford Courant.

Any changes in Connecticut defense funding is significant given the size of the industry here, experts say. Cuts to the industry, however, are included in the Budget Control Act of 2011, an agreement federal lawmakers forged to limit deficit spending. The act, and the cuts in it, will go into effect by year's end unless Congress reaches a new agreement.

At risk is a defense industry workforce in Connecticuct of 36,000 to 50,000 and about $860 million in defense-related taxes the state collects annually, the Courant reports.

Joe Blow November 16, 2012 at 01:33 PM
Ahhhhhhhh yes, the fiscal "cliff". Well, they had ample time to come up with a budget (like 4 years) and didn't so let it happen. You reap what you sow and our government is out of control with spending.
E Twig November 16, 2012 at 03:13 PM
Can somebody explain to me what fiscal "cliff is? This saying started showing up last week.
Ken November 16, 2012 at 06:17 PM
Wait, I thought the republicans wanted budget cuts, so why would they want to stop sequestration? Well, I am sure if was cuts on everything except the military they would agree...but anyway... I would like to see a constitutional amendment that said if Congress is unable to pass a budget by the first day of the fiscal year, that the budget put forth by the President (who ever that is at at the time) is automatically accepted for the year. Since the threat of sequestration isn't enough to get them motivated, maybe this would? maybe? Or perhaps we should just make it law that if they can't pass a budget that they all loose their jobs and can never run for elected office again..We'd probably burn through a lot of politicians this way!
Will Wilkin November 16, 2012 at 09:13 PM
Military spending as a jobs program is less effective dollar for dollar than clean energy, health care or education spending. But our leaders don't want to back out of the imperial overstretch. http://www.peri.umass.edu/fileadmin/pdf/published_study/PERI_military_spending_2011.pdf EXCERPT: We first present some simple alternative spending scenarios, namely devoting $1 billion to the military versus the same amount of money spent on clean energy, health care, and education, as well as for tax cuts which produce increased levels of personal consumption. Our conclusion in assessing such relative employment impacts is straightforward: $1 billion spent on each of the domestic spending priorities will create substantially more jobs within the U.S. economy than would the same $1 billion spent on the military. We then examine the pay level of jobs created through these alternative spending priorities and assess the overall welfare impacts of the alternative employment outcomes. We show that investments in clean energy, health care and education create a much larger number of jobs across all pay ranges, including midrange jobs (paying between $32,000 and $64,000) and high-paying jobs (paying over $64,000). Channeling funds into clean energy, health care and education in an effective way will therefore create significantly greater opportunities for decent employment throughout the U.S. economy than spending the same amount of funds with the military. END EXCERPT

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