More than 42,000 Coloradans could lose their jobs through a process known as sequestration if Congress cannot agree on a plan to reduce the federal deficit, according to a study released today.
The study’s analysis explores the economic impact on both defense and domestic jobs if the Budget Control Act goes into effect on its Jan. 2 deadline.
The Act will automatically cut military and space budgets by nearly $500 billion unless lawmakers create — and agree on — a new plan. Colorado has the second-largest aerospace economy in the nation.
“This is an unprecedented level of budget cuts and the industry does not know how to plan, so it is crippling the industry,” said Vicky Lea, aviation and aerospace industry manager for Metro Denver Economic Development Corporation.
The new estimates place Colorado’s losses at more than 18,000 defense jobs and more than 24,000 non-defense jobs by 2013.
“The impact of this will be just as bad on the domestic side as the defense side,” said Sen. Jeanne Shaheen, D-N.H., at a Tuesday morning press conference.
Aerospace Industries Association commissioned George Mason University’s Stephen S. Fuller and Chmura Economics and Analytics for the study, which is being publicized by both Republicans and Democrats.
“We all know that we have a fiscal crisis to address,” said Sen. Kelly Ayotte, R-N.H., at the press conference. “But the way the sequestration works is irresponsible.”
With nearly 50 percent of Colorado’s aerospace companies employing fewer than ten people, Lea worries that many of the smaller companies may not survive the budget cuts.
Kristen Leigh Painter: 303-954-1638, kpainter@denverpost.com or
