How will the 2013 Defense Budget Cuts Affect Oregon?

“ ...get a copy of this report to see how it affects the economy and jobs in the country.” - Senator Jon Kyl (R-AZ)

US soldier in Iraq, 2008. Salem-News.com photo by Tim King

(WASHINGTON DC) - In September 2011, Secretary of Defense Leon Panetta compared the mandatory Sequestration defense budget cuts to “shooting ourselves in the head.” On Wednesday June 6, the Center for Security Policy launched the new 2011 data outlining the economic consequences of these cuts: the “Defense Breakdown Economic Impact Reports.” Footage of the panel discussion launching the 2011 reports can be viewed via livestream at 2pm today at: http://www.youtube.com/watch?v=RvsYIHy-2zU (this link will also serve as the location for the archive video of the launch).

The reports were created to assist community leaders and citizens in understanding how these defense budget cuts may affect their local businesses and jobs by estimating the economic impacts of the defense budget cuts on cities, counties, congressional districts and states at www.forthecommondefense.org.

A Summary Report (4 pages) for your state can be downloaded here. Highlights from that report are below. A non-technical FAQ explaining data sources, methodology and future plans for the Defense Breakdown can be read here.

Individual State Detailed Reports - found here - are estimates, based on data updated with 2011 numbers, that show the potential state-wide economic impact of defense budget cuts on cities, counties, congressional districts, minority-owned businesses, veteran-owned businesses, and other small business categories, organized with over 2,700 "Contractor location" reports. The additional set of over 26,000 reports show estimated defense spending cut impacts at the "Place of Performance" - a closer measure for potential job losses - for cities, counties and states, with three separate reports for each location: spending by weapon system, by government contracting office, and by products and services.

At a recent press conference, Senator Jon Kyl (R-AZ) urged Americans “to get a copy of this report to see how it affects the economy and jobs in the country.” Since the first release in February 2012 of 2010 data, the reports have been used by numerous Governors’ offices, over a hundred offices in the House and Senate, major national veterans’ organizations and grassroots organizations, and political campaigns - all concerned about the impact of the mandated 18% Sequestration defense budget cuts on their local economies. Senate Majority Leader Harry Reid’s (D-NV) refusal to pass a budget, and a White House pledge to “veto any effort to get rid of those automatic spending cuts,” make the need to assess economic impacts of Sequestration defense cuts greater than ever before.

• Oregon defense prime contractors earned over $1.01 billion in 2011 protecting America, but now they may face 18% revenue cuts under Sequestration - starting in 2013.
• Oregon defense contractor revenue losses could be greater than $182 million – each year.

Oregon Businesses Projected Revenue Reductions Based On National Average