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S.D. County Economy Facing Uncertain Future if Sequester Shrinks Budgets

The cuts could trickle down to six La Mesa companies that did business with the Department of Defense in 2011 to the tune of about $1.1 million.

A political deal struck in the summer of 2011 will begin to affect the economy in late winter 2013, unless feuding lawmakers in Washington can agree on a compromise by Friday.

The sequester will mandate significant cuts to the federal budget, with few if any government agencies immune to reductions in funding. Defense and domestic spending will be evenly slashed, and the impacts on local economies are far from clear.

San Diego County has almost 70,000 federal employees and retirees, according to Eye on Washington, and their fate could include furloughs or worse. Media reports include warnings on delays in air travel and tax refunds. Civilians employed by the Department of Defense face the possibility of furloughs.

“The possibility exists for a 22-day furlough of Federal employees,” said Brian O’Rourke, spokesman for Navy Region Southwest.

But what does that mean for La Mesa?

The cuts could trickle down to six local companies that did business with the Department of Defense last year to the tune of about $1.1 million.

According to the Center for Defense Policy, which in September released updated data from several federal sources, these La Mesa companies did business with the Pentagon in 2011 (with the value of contracts noted):

  • Helix Environmental Planning Inc. ($130,294) on El Cajon Boulevard in the category of “Environmental Consulting Services.”
  • Hunter Steel Construction Inc. ($3,960) on El Cajon Boulevard for “Commercial and Industrial Building Construction.”
  • Partners Data Systems Inc. ($17,523) on Via Mercado for  “Custom Computer Programming Services.”
  • Pisces Seafood International Inc. ($304,018) on Grandview Drive for “Fresh and Frozen Seafood Processing.”
  • Stephen J. Wencho ($280,123) on Avenida Thomas for “General Medical and Surgical Hospitals.”
  • Turbo CM Inc. ($363,893) on La Mesa Boulevard for "Engineering Services."

Spring Valley had 10 federal contracts in 2011 totaling almost $10.7 million, including Hugo Alonso, Inc. on Presioca Street, with a $7,291,810 contract for "Specialty Trade Contractors."

The San Diego Military Advisor Council estimates that between 4,000 and 5,000 ship repair jobs will be lost due to fewer surface ship availabilities, a loss of $219 million to the local economy.

“Sequestration presents a serious threat to jobs and our economy. Across-the-board cuts to federal programs would hurt families across San Diego County,” said county Supervisor Dave Roberts. “This is especially bad news as the nation is trying to climb out of the recession. It couldn’t come at a worse time.”

The Obama administration released on Sunday a report for each state detailing the impacts of the sequester’s budget cuts, and Republicans have accused the president of using scare tactics for political gain.

The seven-page report for California paints a grim picture for education, environmental protections, the military, law enforcement, child care, public health and government services. The report is attached to this article in the PDF section.

The nation has been through this drill before. The sequester was set to begin on Jan. 1, 2013, if lawmakers weren’t able to reduce the budget deficit. That deadline came and went, but they were able to agree on postponing the sequester for two months. That time is running out.

Komfort March 01, 2013 at 12:10 AM
"The decline and fall of the Roman Empire offers us a sobering warning of a great a nation that became over-extended and war-weary abroad, while it became utterly profligate and decadent at home. Its economy in shambles and its treasury bankrupt, the mightiest military power on Earth finally fell easy prey for backward hordes that had previously existed only beyond the fringe of civilization. Three years ago, Admiral Mike Mullen sounded the alarm for our nation with this chilling warning: "Our national debt is our biggest national security threat." That was three years ago, when our debt stood at $13 ½ trillion. Today, we owe $16 ½ trillion. In other words, since he issued that warning, we have added more to this country’s debt than we did in our nation’s first 200 years. No nation has ever taxed and borrowed and spent its way to prosperity, but many nations have taxed and borrowed and spent their way to economic ruin and bankruptcy and history is screaming this warning at us: Nations that bankrupt themselves aren’t around very long, because before you can provide for the common defense you have to be able to pay for it, and the ability of our nation to do so is coming into grave question...." http://www.youtube.com/watch?v=SqOXlRVd_Vk
Things I Learned March 01, 2013 at 12:13 AM
"The finger-pointing began during the third presidential debate last fall, on Oct. 22, when President Obama blamed Congress. “The sequester is not something that I’ve proposed,” Obama said. “It is something that Congress has proposed.” The White House chief of staff at the time, Jack Lew, who had been budget director during the negotiations that set up the sequester in 2011, backed up the president two days later. “There was an insistence on the part of Republicans in Congress for there to be some automatic trigger,” Lew said while campaigning in Florida. It “was very much rooted in the Republican congressional insistence that there be an automatic measure.” The president and Lew had this wrong. My extensive reporting for my book “The Price of Politics” shows that the automatic spending cuts were initiated by the White House and were the brainchild of Lew and White House congressional relations chief Rob Nabors — probably the foremost experts on budget issues in the senior ranks of the federal government. Obama personally approved of the plan for Lew and Nabors to propose the sequester to Senate Majority Leader Harry Reid (D-Nev.). They did so at 2:30 p.m. July 27, 2011, according to interviews with two senior White House aides who were directly involved." http://www.washingtonpost.com/opinions/bob-woodward-obamas-sequester-deal-changer/2013/02/22/c0b65b5e-7ce1-11e2-9a75-dab0201670da_story.html
Komfort March 01, 2013 at 12:26 AM
"D.C. caught off guard by Obama sequester vow... Obama said. 'It will not happen.'" http://www.politico.com/news/stories/1012/82736.html
Kevin George March 01, 2013 at 12:39 AM
Here is the list of Federal departments and agencies. http://www.usa.gov/directory/federal/index.shtml Just for starters: Botanic garden http://www.usa.gov/directory/federal/botanic-garden.shtml Citizens stamp advisory comittee http://www.usa.gov/directory/federal/citizens-stamp-advisory-committee.shtml Economic adjustment office http://www.usa.gov/directory/federal/citizens-stamp-advisory-committee.shtml Office of meditation and concitation service http://www.usa.gov/directory/federal/office-of-mediation-and-concitiation-service.shtml You get the idea. Go to that list and tell me why we need a Administartion for Native Americans http://www.usa.gov/directory/federal/administration-for-native-americans.shtml AND the Bureau of Indian affairs http://www.usa.gov/directory/federal/bureau-of-indian-affairs.shtml Ya there is no place to cut.
Things I Learned March 01, 2013 at 02:42 AM
Maybe they can cut the department of fake words. WTF is "concitiation"? I went to the website and I still don't know. I didn't learn something today.
Things I Learned March 01, 2013 at 03:44 AM
Oceania has always been at war with Eastasia: ""It's conceivable that in the first week, first two weeks, first three weeks, first month - that unless your business is directly related to the Defense Dept, unless you live in a town that is directly impacted by a military installation, unless you're a family that now is trying to figure out where to keep your kids during the day because you just lost a Head Start slot, a lot of people may not notice the full impact of the sequester." --Present Baldwin H. Modello, PBUH http://www.youtube.com/watch?v=sLI748-bxz4&feature=player_embedded
Komfort March 01, 2013 at 04:12 AM
I wonder if Saturday Night Live has ever heard of Obama.
Things I Learned March 01, 2013 at 03:39 PM
The sequester is already being felt: "...moments ago we learned that the US consumer gave back all the December gains and then much following news that while spending did nothing, and came in as expected at 0.2%, personal income imploded by 3.6% on estimates of a modest 2.4% drop. This was the biggest drop in personal income in 20 years just as the US consumer's confidence was soaring at least according to such manipulated aggregators as UMich. What this also led to was that not only is the stock market back to 2007 levels, but so is the personal saving rate, which crashed from 6.4% to 2.4%, the lowest since November 2007, and leaving Americans with the least purchasing power just as the full impact of a government that is flirting with austerity is starting to be felt. And just as bad was the material 4% pullback in real disposable personal income..." http://www.zerohedge.com/news/2013-03-01/consumer-taps-out-income-plunges-most-20-years-savings-rate-crashes-2007-levels I mean it has to be the sequester not tax hikes and Obamacares and cranking up the printing presses and the price of electricity will necessarily skyrocket oh well does anybody have tips on how to tenderize shoe leather I feel like soup tonight?
No Bad Government March 01, 2013 at 04:21 PM
Enough of the scare tactics already. Are you telling me the government can't find a way to save $85B in a $3.5 Trillion budget? Get rid of the department of education for starters. Then do a flat tax and get rid of the IRS. Then get rid of defined Benefit plans and put everyone on a 401K. Then stop funding planned parenthood and abortions. You don't want to use birth control and want an abortion, pay for it yourself. then stop all the unnecessary conferences and junkets and cut every congress persons budget by 20% including their salary and require them all to drive a Prius since they are all into the green non-sense. Then stop dolling out billions of dollars to green companies and let them make it on their own Then stop all the ethanol subsidies and Alpaca tax breaks and then stop all the grants to study idiotic things like shrimps on treadmills (yes it is true). Then stop sending money to countries that hate us and if they don't do what we want them to, pull the funding altogether. Falsely jjailed Americans in Mexico and other countries doesn't work for me. Problem solved.
Komfort March 01, 2013 at 04:27 PM
"In the opening days of the assault on Libya, the United States and the United Kingdom launched a barrage of at least 161 Tomahawk cruise missiles to flatten Moammar Gadhafi’s air defenses and pave the way for coalition aircraft. In fiscal terms, at a time when Congress is fighting over every dollar, the cruise missile show of military might was an expenditure of nearly a quarter of a billion dollars. Each missile cost $1.41 million." https://www.commondreams.org/newswire/2011/03/25-10 Money well spent...
Kevin George March 01, 2013 at 04:53 PM
They spelled conciliation wrong.....twice. That must have been why I spelled mediation wrong. So it's really called "Office of Mediation and Conciliation Service". Perhaps this calls for the "Department of Spelling and Punctuation Administartion". Apologies to Michael Echlund.
Kevin George March 01, 2013 at 05:10 PM
Now add on the 3.5 cent State gas tax voted in yesterday and you really have something that will really kick start the economy.
Komfort March 03, 2013 at 02:21 PM
NBC goes racist! http://commoncts.blogspot.com/2013/03/saturday-night-live-mocks-president.html?m=1 I think Hillary is behind this...
Komfort March 09, 2013 at 12:20 AM
When asked by FoxNews.com if the first lady's office or schedule would be affected by the sequester, the White House issued a 100-word statement that made no mention of any specific cuts that might affect Michelle Obama's activities -- while making a generic reference to cuts affecting the "Executive Office of the President," which houses the first lady's office. http://www.foxnews.com/politics/2013/03/08/white-house-public-tours-on-hold-first-family-trips/

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