Army, Navy say budget cuts will impact 485,000 jobs


Budget uncertainties and scheduled cuts will cause the Army and Navy to reduce wages and spending by roughly $26 billion, which the services say will impact roughly 485,000 civilian personnel and private sector employees through furloughs, layoffs or jobs lost from decreased military investments and construction.

The Army's Program Analysis and Evaluation group says that during fiscal 2013, the Army has an estimated $18 billion shortfall because of the lower-than-needed appropriations under the current continuing resolution, upcoming sequestration and emerging overseas contingency operations requirements.

In the near term, the report says budget uncertainty will will affect 302,626 jobs through either loss or furlough. For the long term, the report says the Budget Control Act's discretionary funding caps for fiscal 2014 through fiscal 2021 will lead to further cuts to personnel, modernization and readiness.

Every state and every Army installation will see cuts, says the Army.

The states that will be hit hardest by the budget uncertainties are Texas, Alabama, Pennsylvania and Virginia, says the report. It estimates each of these states will see an economic loss of more than $1 billion because of spending reductions on base operations, acquisitions and new construction or modernization projects.

The least affected states include Delaware, North Dakota, Rhode Island and Wyoming, each of which will have less than 40 jobs affected.

The Navy's fiscal 2013 draft plan says that budget cuts will affect more than 185,000 jobs through furloughs, cuts and hiring freezes. Sequestration alone will reduce its investment accounts for shipbuilding, aircraft, weapons and research by $7.75 billion while its operations and maintenance budget will be cut by $4 billion, says the plan.

Furloughs due to sequestration will contribute to delayed maintenance for aircraft carriers and submarines in public shipyards, reduce hours of base operations and medical facilities, and reduce the service's ability to perform audits.

The cuts will also reduce the fleet by 30 to 40 ships by fiscal 2030.

For more:
- read the Army's state-by-state comparison ( posted by USA Today)
- read the Navy's fiscal 2013 draft plan ( posted by Jessie Canty)

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