Baltimore Business Journal
Maryland defense contractors stand to lose almost $2.9 billion in revenue annually if Congress moves forward with budget cuts, according to a new report by the Center for Security Policy.
Last year’s so-called “Supercommittee” — a 12-member joint Congressional bipartisan committee tasked with addressing America’s debt woes — failed to compromise on a deficit reduction plan before a November deadline, triggering automatic reductions to several federally funded operations. One provision included cuts to the defense budget of up to 18 percent.
An 18 percent cut would shrink defense contractors’ revenue by $2.9 billion in Maryland, with significant losses in the small- and minority-owned business community, according to the Center for Security Policy.
Under 18 percent cuts, the nonprofit said that Maryland small businesses could lose $234.7 million, and minority-owned businesses could lose $370.5 million. Those estimates are based on 2011 revenue figures.
Rep. Paul Ryan, R-Wisc., introduced legislation last month that would eliminate the cuts, which passed solely on Republican support in a 218-199 House vote. The Senate is set to vote on it next, but in November President Barack Obama said he will “veto any effort to get rid of those automatic spending cuts.”
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