On Jan. 2, 2013, massive cuts to the U.S. Department of Defense budget — $492 billion, spread out over nine years — are scheduled to take effect. The immediate impact will be across-the-board cuts of roughly 10 percent to all Defense programs and projects.
This sequestration, as it’s called, was a move by Congress to impose limits on federal spending after last year’s so-called “Super Committee” failed to reach a deficit reduction deal. There is a chance Congress will reverse itself, or soften the cuts, between now and the end of the year. But defense contractors are nervous.
In Minnesota, defense contracts signed in the 2011 fiscal year were worth $1.7 billion for work done all across the state by more than a thousand businesses. As Jeff Severns Guntzel reports, the potential cuts would not just hit big defense contractors; they would reach deep into communities and small businesses that depend on those dollars.
THIS WEEK’S FEED: DEFENSE SPENDING
Aug. 17, 2012
ONLINE | Defense spending, state by state
The looming cuts could leave deep scars on communities and small businesses that depend on defense dollars. Browse an interactive map of Defense Department spending across the U.S.
Producers: Jeff Severns Guntzel, senior reporter and Drew Geraets, web producer
Link: Looming defense cuts: Small businesses watch and wait
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Chip Laingen (U.S. Navy, Ret.), Todd Harrison (Center for Strategic and Budgetary Assessments) and Kevin Brancato (Bloomberg Government)
Editor: Jeff Severns Guntzel, senior reporter
Contact information available at Dropbox*
All media files (.wav, .doc, etc.) and expert contact information available at DropBox.
QUESTIONS WE ARE POSING TO THE NETWORK [Find the query here]
– How much of your business depends on defense contracting?
– What challenges are unique to doing business with the Defense Department?
– Please describe the services or products you provide under contract with the Defense Department.
– Is there a statistic or piece of information you can share that demonstrates the need for the service or product you provide?
– Are you concerned about the possible sequestration cuts? How are you preparing, if at all?
– If you read or listened to my story on defense contractors and sequestration, what about your experience is missing?
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