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Jun-07-2012 02:01printcomments

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
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.

Highlights from the Oregon Summary Report:

Oregon businesses will not escape the 9% and 18% cuts
  • 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

Type of Business

Numbers of This Business Type 2011

Revenue for This Business Type 2011

Revenue Losses for Business Type 2010 - at Least 9% Reduction

Revenue Losses for Business Type 2010 - at Least 18% Reduction

Minority Owned





Small Businesses





Small Disadvantaged










Service-Disabled Veteran





Black American





Hispanic American





Asian-Pacific Owned










The Center’s “Defense Breakdown Economic Impact Reports” are part of a broader 2012 initiative, the Coalition for the Common Defense, to educate and engage the American public on the importance of maintaining a strong national defense.
Regarding the release of the 2011 data, Frank J. Gaffney, Jr., President of the Center for Security Policy stated:

The 2011 updates to the Center for Security Policy’s “Defense Breakdown Economic Impact Reports” demonstrate the threat sequestration poses to national security and the economy by outlining the impact of these cuts across the country. The Reports educate civic leaders and average Americans as to the dangers of further cuts.
Secretary of Defense Leon Panetta has argued that pulling the sequestration trigger would be akin to “shooting ourselves in the head.” A strong economy requires a strong national defense.
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.

A full statement of principles can be located here. 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.

Comments Leave a comment on this story.

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SGT June 9, 2012 10:05 am (Pacific time)

Douglas you are unarmed in the battle of wits

Douglas Benson June 7, 2012 5:11 am (Pacific time)

Good ,how about 50% instead?

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©2018 Salem-News.com. All opinions expressed in this article are those of the author and do not necessarily reflect those of Salem-News.com.

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