Spending cuts threaten military town's businesses
Government contracts related to Peterson Air Force Base in Colorado helps spur thousands of area businesses. (Photo by: U.S. Air Force/Airman First Class Jessica Hines)
March 1st, 2013
08:14 AM ET
1 year ago

Spending cuts threaten military town's businesses

New York (CNNMoney) - As Washington braces for automatic spending cuts, small businesses in the military town of Colorado Springs say they have been losing government business for months.

The general uncertainty facing federal agencies has trickled down to the companies that rely on federal contracts.

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Filed under: CNNMoney.com • Debt • Deficit • Military
soundoff (17 Responses)
  1. The Elephant in the Room

    "Military town"? Yes, the Air Force Academy is out there but its seems a stretch to call it a "military town". Ok there MIGHT BE some Lockheed Space operations in Colorado but to try to put the "anytown USA label on CS is dubious, isn`t it?

    March 1, 2013 08:23 am at 8:23 am |
  2. Joe from CT, not Lieberman

    The story may have worked better had you actually shown civilian contractors working on the air force jet instead of two Tech Sargents.

    March 1, 2013 08:49 am at 8:49 am |
  3. Rudy NYC

    While 2% may not seem like much, when the cuts are made in programs that will have a dominoe effect. Many of the military towns are the biggest employer in town. Cutting back contractors means not only fewer dollars flowing into the community. It also means that fewer dollars moving around the community, which is where the long term damage will be done.

    March 1, 2013 08:56 am at 8:56 am |
  4. Wilson

    @The Elephant in the Room

    "Military town"? Yes, the Air Force Academy is out there but its seems a stretch to call it a "military town". Ok there MIGHT BE some Lockheed Space operations in Colorado but to try to put the "anytown USA label on CS is dubious, isn`t it?
    ------------------------------------------
    Fort Carson, Schriever AFB, Peterson AFB, Cheyenee Mountain AFS, and the Air Force Academy. There used to be a couple more, but they were absorbed into Peterson and Schriever.

    March 1, 2013 09:10 am at 9:10 am |
  5. Dutch/Bad Newz, VA

    These cuts will largely effect the Hampton Roads area. That's precisely why the President was at Newport News Shipyard. Stop the sequestration now!!!

    March 1, 2013 09:23 am at 9:23 am |
  6. It's Time to Take Responsibility

    I for one am glad to see the sequestration begin. This Do Nothing President and Do Nothing Congress are equally to blame since no one can seem to agree to work for the PEOPLE. It will take a lot of sacrifices for all to get our ever increasing debt under control. I do not know any family that uses the concept of spend, spend, spend to control their family budget and neither can the Administration use this concept to get our US budget and debt in alignment. Obama is the most polarizing president in many years and Dems and Repubs are ever more far apart in beliefs and concepts, and this President can’t stop politicking which simply makes the situation worse. Little wonder we are where we are today…look no further than ALL the politicians, and that includes Obama, Dems and Repubs. Maybe the sequestration will cause the people to really take notice of our elected leaders and think twice about electing someone based on popularity.

    March 1, 2013 09:53 am at 9:53 am |
  7. Randy, San Francisco

    Republicans/Tea Partiers can no longer wrap themselves with the flag and claim to be the party for a strong national defense.

    March 1, 2013 09:54 am at 9:54 am |
  8. rs

    Ahhhh yes, the multiplier effect the GOP failed to account for. They fail to grasp the impact of reduced spending to contractors, or base area restaurants and businesses on their employees.
    Well, they are the party of dribble-down economics what did we expect from their Sequester economy breaker?
    The GOP is anti-American and anti-Defense. This and their actions around filibustering the Sect. of Defense in a time of war prove that.

    March 1, 2013 10:11 am at 10:11 am |
  9. Sniffit

    GOP/Teatrolls: "Mission Accomplished"

    March 1, 2013 10:12 am at 10:12 am |
  10. rs

    Rudy NYC

    While 2% may not seem like much
    ________________
    Yes, but given how far through the federal budget year we are, it really is more like a 4 or 5% cut depending upon the agency and their spending to date- it may even be more.

    March 1, 2013 10:13 am at 10:13 am |
  11. much thunder.little rain

    the answer is dont cut in my town..

    March 1, 2013 10:13 am at 10:13 am |
  12. sonny chapman

    "Govt. is Satan"- Ronald Reagen. Conversely, an unbridled Free Market System is the Savior. If this current state of Middle Class is Utopia, something ain't right.

    March 1, 2013 10:21 am at 10:21 am |
  13. The REAL Truth...

    @It's Time to Take Responsibility – I for one am glad to see the sequestration begin. This Do Nothing President and Do Nothing Congress are equally to blame since no one can seem to agree to work for the PEOPLE. It will take a lot of sacrifices for all to get our ever increasing debt under control. I do not know any family that uses the concept of spend, spend, spend to control their family budget and neither can the Administration use this concept to get our US budget and debt in alignment.
    --------------------------------
    Federal spending does not work in the same way that a family budget does. Part of the spend, spend is to pay down the existing debt load – "supported and backed by the weight of the US government". Part of it is the EVER INCREASING Defense budget. Yes, double over 12 years, highest it's ever been in real dollars. Yet the right continues to blame Obama for defense cuts ???

    March 1, 2013 10:26 am at 10:26 am |
  14. GOP = Greed Over People

    Yep, the good baggers down here in GA have cut the throats of their own constituents.

    We are in the top 10 states of service bases and between civilian layoffs and furloughs many small town, small business owners will feel the pain maybe even have to close their doors.

    Glad it was the baggers making sure their own "patriots, feel the pain".

    March 1, 2013 10:30 am at 10:30 am |
  15. steve

    I didn't think government created jobs........

    March 1, 2013 10:44 am at 10:44 am |
  16. Fair is Fair

    Dutch/Bad Newz, VA

    These cuts will largely effect the Hampton Roads area. That's precisely why the President was at Newport News Shipyard. Stop the sequestration now!!!
    -------–
    So does the left want defense cuts or not???

    March 1, 2013 10:54 am at 10:54 am |
  17. Fair is Fair

    @ The REAL Truth:

    "Federal spending does not work in the same way that a family budget does. Part of the spend, spend is to pay down the existing debt load – "supported and backed by the weight of the US government". Part of it is the EVER INCREASING Defense budget. Yes, double over 12 years, highest it's ever been in real dollars. Yet the right continues to blame Obama for defense cuts ???"
    --------
    Couple of questions for you, Truth... first, does the left want defense cuts or not? Second, we do NOT pay down the existing debt... in fact, we're adding to it to the ture of $1 trillion per year. At rock-bottom, near-zero interest rates, I might add. We spend an ENORMOUS amout of money to "service" the debt (e.g. pay the interest)... so can you imagine what's going to happen to that service when those rock-bottom near-zero interest rates rise by just a measly percent or 2?

    March 1, 2013 11:00 am at 11:00 am |