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Local Economy Facing Uncertain Future if Sequester Shrinks Budgets

Federal agencies will have fewer funds beginning Friday if Republicans and Democrats can’t avoid the sequester deadline. Several Cerritos-based businesses will also see the affects.

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

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.

Los Angeles County has some 76,300 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 how does that affect the Cerritos-Artesia area?

The cuts could trickle down to 17 Cerritos-based companies that did business with the Department of Defense last year to the tune of about $2.25 million.

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

  • Accurate Air Engineering, Inc. (three contracts valued at $66,292) on Carmenita Road in the category of "Industrial Machinery and Equipment Merchant Wholesalers"
  • Aline Heat Seal Corporation (three contract valued at $3,703) on Struikman Road in the category of "Packaging Machinery Manufacturing"
  • American Textiles Systems (18 contracts valued at $819,908) on 166th Street in the category of "All Other Miscellaneous Chemical Product and Preparation Manufacturing"
  • Apperson Print Resources, Inc. (contract valued at $7,140) on Cerritos Corporate Drive in the category of "Other Professional Equipment and Supplies Merchant Wholesalers"
  • Bar Engineering & Manufacturing, Inc. (two contracts valued at $0) on Norwalk Boulevard in the category of "Other Aircraft Parts and Auxiliary Equipment Manufacturing"
  • Bermingham Controls, Inc. (nine contracts valued at $99,897) on Business Circle in the category of "Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance"
  • California Nanotechnologies, Inc. (contract valued at $14,422) on Edwards Road in the category of "Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)"
  • Consolidated Trading Co. Of America (contract valued at $296,128) on Mardquardt Avenue in the category of "Computer and Computer Peripheral Equipment and Software Merchant Wholesalers"
  • Corelis, Inc. (seven contracts valued at $88,762) on Alondra Boulevard in the category of "Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals"
  • James Di Rosa, Inc. (15 contracts valued at $169,535) on Fabrica Way in the category of "Other Apparel Accessories and Other Apparel Manufacturing"
  • Eide Industries, Inc. (contract valued at $11,102) on Piuma Avenue in the category of "Other Ordnance and Accessories Manufacturing"
  • Ftg, Inc. (seven contracts valued at $270,337) on Center Court Drive in the category of "All Other Motor Vehicle Parts Manufacturing"
  • Genard, Inc. (contract valued at $68,086) on Midway Avenue in the category of "Painting and Wall Covering Contractors"
  • Icon Safety Co., Inc. (contract valued at $0) on State Road in the category of "Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables"
  • Sitwell, LLC. (five contracts valued at $133,950) on Distribution Way in the category of "Office Furniture (except Wood) Manufacturing"
  • Society Of Mexican American Engineers & Scientists (five contracts valued at $164,500 on South Street in the category of "Colleges, Universities, and Professional Schools"
  • U.S. Armor Corporation (three contracts valued at $40,499) on Valley View Avenue in the category of "Other Clothing Stores"

Colleges and universities across the country will also feel the impact of automatic federal spending cuts. (Click here to see the effects on Cerritos College.)

“The across-the-board cuts of sequestration threaten hundreds of thousands of California jobs, services for children, seniors and veterans, not to mention our overall economic recovery," said Congresswoman Linda Sanchez of the 38th Congressional District, which includes the cities of Cerritos and Artesia. "I am fighting my hardest to prevent these reckless cuts because they would be devastating to California. Reducing our deficit is important. However, I believe we should take a balanced approach that protects working families and won’t hurt our economic recovery.”   

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.

Local Person March 02, 2013 at 05:12 PM
Do you realize that these cuts are a TINY portion of the budget and GDP? Yet all the media outlets are portraying this as budget Armageddon. With over 16 TRILLION in debt, we need these cuts and substantially more. Also, the Obama administration and its hierarchy has discretion in where the cuts are made. It is simply classing posturing by those who are unwilling to cut back to say that the only way cuts can be made is to start laying off firemen, teachers, police, closing schools, etc...this is nothing more than propaganda based on half truths. A 2011 Government Accountability Office report gave a sampling of the vastness of what could be cut, consolidated and rationalized in Washington: 44 overlapping job training programs, 18 for nutrition assistance, 82 (!) on teacher quality, 56 dealing with financial literacy, more than 20 for homelessness, etc. Total annual cost: $100 billion-$200 billion. just thesse bloated programs alone total about two to five times the entire amount of the domestic sequester cuts. So, do these cuts REALLY need to affect the things this administration is attempting to frighten you with? Look a little deeper people. Unless we soon effect these cuts and TRILLIONS more, this country WILL go bankrupt. It's simple math and time we lost the entitlement mentality. The goose is dying and there will soon be no more golden eggs.
Local Person March 02, 2013 at 05:33 PM
Follow up news from the Bureau of Public Debt at the U.S. Treasury yesterday: "Without fanfare, the Bureau of Public Debt at the Treasury Department quietly posted its daily debt report showing the total public debt of the U.S. government topped $16.687 trillion. (To be exact: $16,687,289,180,215.37)," reports Mark Knoller of CBS. "On January 20, 2009, the day Mr. Obama took office, the debt stood at $10.626 trillion. The latest posting reflects an increase of over $6 trillion." And debt is expected to increase by nearly another trillion this year. "Nevertheless, the Office of Management and Budget projects the national debt will continue to increase by over $800 billion this year and by amounts in the range of $500 billion to $800 billion in the out years - all of which will add to the national debt." It's an historic achievement for Obama, CBS notes. "It's the largest increase to date under any U.S. president. During the eight-year presidency of George W. Bush, the debt soared by $4.9 trillion." Are Y'all getting any of this? Forget which political team you consider yourself on. Our real crisis is runaway debt. You can either begin controlled cuts NOW, or suffer an even more severe COLLAPSE later.

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