Study: Maine defense cos. vulnerable to automatic federal cuts
A report by the Center for Security Policy, a Washington, D.C., think tank, warns that almost 6,000 military-related jobs and upwards of $239 million of private-sector earnings in Maine could be lost in automatic across-the-board budget cuts because of the Budget Control Act passed by Congress last August.
According to the Bangor Daily News, the controversial measure to balance the federal budget calls for 10% reductions in all federal programs, which translates to about $500 billion in Pentagon cuts between 2013 and 2021. In addition to those cuts, the Obama administration is calling for $487 billion in long-term cuts in the Department of Defense.
Citing the think tank's report, the BDN estimated potential Maine job losses of 4,000 or more at defense contractors, 122 active-duty military employees and more than 1,700 civilian DoD employees. Those job losses would be spread among 1,063 Maine businesses and several military units in the state.
The think tank's report also estimated that Maine defense contractors – which earned nearly $5 billion in 2011 – could lose revenues in excess of $898 million per year. The BDN also cited a 2011 study by Bloomberg Government that ranked Maine 15th in the nation for its dependence on defense spending.
Maine's congressional delegation agreed with the think tank's conclusion that the automatic budget cuts, known as "sequestration," would be devastating to both the state and the nation, but acknowledged that finding common ground between Democrats and Republicans during an election year is difficult.
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