Defense cuts to affect La. business

Like every state, Louisiana stands to lose millions in cutbacks to defense contracts in 2013 with “sequestration” on government spending, according to the Center for Security Policy. In 2012 President Barack Obama limited U.S. military capability to fighting one “regional conflict” and one “holding action” and approved a 9% cut to spending, slashing $487 billion from the budget. With the sequestration law, implemented in the Budget Control Act of 2011, up to 18% in cuts will occur between 2013 and 2021, mandating $500 billion in spending is dropped. In 2011 Louisiana had $2.4 billion in defense contracts; if the cuts had applied to that year, it would have meant more than $680 million less, respectively. East Baton Rouge Parish alone, which had $250 million in defense contracts last year, would have faced up to $67 million less in government spending. To see how the defense cuts would apply by parish, click here. To read how the breakdown of defense contracts impacts individual states, click here.