Cuts Will Hit Hard States With Heavy DoD Presence
If sequestration occurs on March 1 it will hit states reliant on defense spending especially hard, according to the laundry list of multibillion-dollar federal spending cuts released Sunday night by the White House.
The mandatory, across-the-board cuts will reduce all military spending by 8 percent over the rest of the fiscal year and mean furlouighs for tens of thousands of civilian Defense Department employees.
Five percent of all other federal spending would be cut.
If Congress and the White House cannot reach an agreement to avert the automatic cuts, a broad swath of government services would be reduced: law enforcement, food safety, schools, national parks, health services and the military. More specifically: Kids sent home from Head Start, airline passengers stuck at choked security checkpoints, unemployed people turned away from job counseling.
The 50-state list was released as President Obama hosted the governors at a White House dinner, an annual tradition of the National Governors Association winter meeting.
Asked what he would say to the President at the governors' meeting with him Monday, Republican Governor Robert McDonnell said, "I would say Mr. President, it's been 18 months. What the heck is going on? Stop having press conferences and get something done...oh, and by the way you're hurting my state."
Dan Pfeiffer, senior advisor to President Obama, countered, "These effects are real." In a conference call with reporters, Pfeiffer said, "There are hundreds of thousands of Americans who are working today who will lose their jobs...which is as catastrophic a thing as can happen to family finances."
Oklahoma Governor Mary Fallin, vice chair of the NGA and a Republican, said in an interview that her biggest worry is the timing of the sequester.
"The President holds the key to the sequestration," she said. Until the administration reveals how the budget cuts will unfold, she said, "it leaves states and the private sector in a period of uncertainty. It's not helpful to our national recovery."
Many of the governors have prepared their own analyses of the impact of the cuts, so the White House report was not entirely a surprise. The impacts range from $8 million in losses this year in South Dakota, according to GOP Governor Dennis Daugaard. In Virginia, McDonnell said the state's economy could lose as much as $4.2 billion in economic output in five years and 164,000 direct and indirect jobs.
Mark Vitner, managing director and senior economist at Wells Fargo, told governors that the sequestration cuts would have the greatest impact on states with a heavy federal presence, especially Virginia and Maryland. He also named New Mexico, Alabama, Missouri, South Carolina.
Maryland Governor Martin O'Malley, a Democrat who has frequently sparred with Republican McDonnell, aligned with the Virginian in urging the President and Congress to resolve the stalemate.
"On both sides of the Potomac we sit in the middle of a corridor of science and security and this sequester stands to wipe out a lot of hard-fought job gains in Virginia and Maryland," O'Malley said on CBS' Face the Nation.
Other governors reacted along party lines, focusing on the President's proposal to end certain tax breaks as part of the solution. Republican governors including Indiana Governor Mike Pence said that GOP governors had initially understood the package would center solely on spending cuts. Added GOP Governor Scott Walker of Wisconsin: "If you raise taxes, consumers won't spend." Democrats such as Vermont Governor Peter Shumlin supported the balanced approach. He said on NBC's Meet the Press that Republican governor should "speak up, stand up or be part of the problem."
TheDefense Department cuts outlined by the White House for just this year include:
Arizona: 10,000 civilian Department of Defense employees would face furloughs, cutting their gross pay by $52.5 million.
California: 64,000 civilian Department of Defense employees would face furloughs, cutting their gross pay by $399.4 million.
Colorado: 12,000 civilian Department of Defense employees would be furloughed, cutting $68.5 million in gross pay.
District of Columbia: 13,000 civilian Department of Defense employees would face furloughs, cutting their gross pay by about $111.3 million.
Florida: 31,000 civilian Department of Defense employees will face furloughs, cutting their gross pay by $183.2 million.
Hawaii: 20,000 civilian Department of Defense employees would face furloughs, cutting gross pay by $134.1 million.
Indiana: 11,000 civilian Department of Defense employees will face furloughs, cutting $64.4 million in gross pay.
Maryland: 46,000 civilian Department of Defense employees would face furloughs, cutting gross pay by $353.7 million, and base operation funding would be cut by about $95 million.
Missouri: $70 million in operating funds for Army and Air Force bases.
Montana: 1,000 civilian Defense Department workers would be furloughed at a loss of $6.3 million in gross pay.
Nevada: An estimated $12 million in lost pay for furloughed civilian military employees would be at risk.
New Hampshire: $1 million to operate Army bases.
New Mexico: 7,000 civilian Department of Defense workers would be furloughed at a pay loss of $42 million.
Ohio: $4.9 million to operate Army and Air Force bases would be cut.
Rhode Island: 5,000 civilian defense employees would be furloughed at a loss of $31.5 million in pay.
South Carolina: $81 million in operating funds for Army and Air Force bases would be cut, and 11,000 defense workers furloughed.
Tennessee:7,000 civilian defense workers would be furloughed at a cost of $37 million in lost pay.
Texas: $233 million in Army base operating funds would be cut.
Utah: 15,000 civilian defense workers would be furloughedt.
Virginia: 90,000 civilian defense employees would be furloughed at a pay loss of $648 million, and scheduled maintenance of 11 Navy ships at Norfolk would be canceled.
Washington: 29,000 civilian military workers would be furloughed at a loss of $173 million in pay.
Wyoming: 1,000 civilian military employees would face furloughs, cutting their gross pay by $5.2 million.
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