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TEXAS ECONOMY HURT BY OBAMA’S DEFENSE SEQUESTRATION CUTS
WASHINGTON DC, MAY 8, 2013: On May 9, President Obama will visit a high school and a technology company in Austin, Texas, reportedly to “draw attention to policies and programs that help spur the economy.”
As background information on Obama’s other economic policies that affect the Texas economy, the Center for Security Policy is re-releasing the “Defense Breakdown Economic Impact Reports” for Texas detailing the harmful effects of sequestration defense budget cuts on Texas businesses and jobs. President Obama’s initiative for defense budget sequestration cuts originated in the White House.
The Defense Department has announced cuts across the country including lay-offs of temporary and contract workers, cuts in training, furloughs, reductions in force structure, longer deployments, maintenance delays, and contract cancellations. Texas is one of the hardest-hit states:
- According to USA Today, Texas – with Fort Hood and Fort Bliss – may have a “$2.4 billion economic loss from the Army’s budget cuts” with furloughs for up to 30,000 Army civilian employees and pay losses of $180 million.
- The Corpus Christi Army Depot in Texas could face $799 million in cuts.
- Air Force cuts in Texas could reduce pay by $127 million.
- Texas defense prime contractors earned over $35.97 billion in 2011 protecting America, but now they face approximately 18% revenue cuts, including 9% in sequestration cuts, starting in 2013. Texas defense contractor revenue losses could be greater than $6.48 billion each year.
- Several studies estimate that Texas could lose 98,979 defense related jobs, with $5.44 billion in lost earnings and a $7.92 billion decrease in the Gross State Product (GSP).
The “Defense Breakdown” reports detail baseline revenues and estimated local economic impacts from the defense budget cuts, using 2011 baseline contract data. The Center will be releasing updated reports, with 2012 contract data, in early June.
The “Defense Breakdown” reports include 2011 defense contracts for each congressional district and bordering zip codes in Texas, with complete contract amount and contractor contact information, at www.forthecommondefense.org/districts .
Defense businesses face $500 billion in sequestration defense cuts – in addition to a separate earlier $487 billion of defense budget cuts already taken, starting in 2013. In total, defense budget cuts are estimated to total 18% over nine years.
The reports are a project of the Center for Security Policy for the Coalition for the Common Defense, intended to educate and engage the American public on the importance of maintaining a strong national defense. The reports are being used in dozens of communities across America by media, planners and elected officials, and are freely available at www.forthecommondefense.org/reports.
About the Coalition for the Common Defense
The Coalition for the Common Defense is an alliance of like-minded individuals and organizations who believe that without provision for the “common defense,” as articulated by the Founders, the freedom that has allowed unprecedented opportunity and prosperity to flourish in this country would soon be imperiled. In this new age of budgetary cuts, the Coalition rejects the false choice between military strength and economic health contending that economic prosperity depends on a strong national defense. Through a series of events and strategic partnerships, the coalition is calling on elected officials, candidates for office and others who share our commitment to the common defense to uphold these principles. We must return the United States to sensible fiscal principles without sacrificing our national security. The Coalition of the Common Defense can be found online at: www.forthecommondefense.org.
About the Center for Security Policy
The Center for Security Policy is a non-profit, non-partisan national security organization that specializes in identifying policies, actions, and resource needs that are vital to American security and then ensures that such issues are the subject of both focused, principled examination and effective action by recognized policy experts, appropriate officials, opinion leaders, and the general public. For more information visit www.centerforsecuritypolicy.org