Monrovia Jobs Threatened by Federal 'Sequestration' Cuts

Federal cuts to defense spending and other programs could threaten the business of Monrovia firms that depend on defense contracts, according to a city official.

More than $1.2 trillion in federal cuts to defense and other spending over the next 10 years could eliminate jobs at Monrovia firms that depend on defense contracts, a Monrovia official told the City Council this week.

The so-called "sequestration" cuts, across-the-board spending cuts of funds already appropriated to congress, were signed into law as part of the 2011 Budget Control Act. The law calls for more than $100 billion in spending cuts next fiscal year if congress cannot reach a compromise, according to an agenda report written by city management assistant Jennifer McLain.

More than 225,000 jobs in the defense sector will be threatened if the cuts are fully imporsed, according to McLain. Three companies in Monrovia--Aerovironment, Ducommun Aerostructures and Roncelli Plastics--employ about 1,000 people in the city and would be seriously impacted if the cuts go through.

"Considering the proposed number of lost jobs in the defense industry, there has been particular concern expressed by local aerospace companies of the profound impacts these cuts could impose on their business, including significant reduction in contracts – which translates to declining sales and job cuts," McClain writes. "Should the sequestration cuts move forward, it has the potential to curtail defense contracts, which could ultimately lead to job losses in Monrovia."

On the advice of the L.A. Jobs Defense Council, the City Council passed a resolution Tuesday calling on congress to pass legislation to avert the sequestration cuts.



Jerry Baker October 04, 2012 at 06:12 PM
Wait a minute, I thought cutting taxes and government spending was supposed to help our economy.
Gayle M. Montgomery October 04, 2012 at 09:29 PM
I feel for the folks who may lose their jobs. My dad worked in aerospace before he moved to Arrowhead and became a real estate broker. He went through countless changes through the years. For those who are potentially affected, read my employment series on The Patch for pointers.
Gayle M. Montgomery October 04, 2012 at 09:31 PM
But we have to cut defense spending. Two wars (one of which it is reported we effectively lost) have cost the country much. I especially like the targeted techniques of the drones where you hit a specific target and don't have all the collateral damage that was technology advanced in Monrovia. But technology means we also need fewer troops (as much as I love our Vets). There may be some solid, transferrable skills that are not simply unique to defense, and the displaced workers may wish to map their skill sets and look for those. The wars, in combination with tax cuts, in combination with bank shenanigans really set this country back on its heals fiscally. I do believe we need to reduce defense spending until there is a justifiable cause to have to raise it again, and I also believe these folks will survive. Now is the time for those who have the capability to consider being entrepreneurial, especially if there's a severance package. It won't be an easy time, and you have my empathy in that regard, but we cannot sustain defense spending in the large numbers we have in the recent past. It has cost us in many other walks of life.
R Terry October 04, 2012 at 10:47 PM
I wonder where they intend to spend that savings...more of those plentiful ads encouraging you to get food stamps and increase that program? Maybe more windfarms and solar panel producers or electric car manufacturers? Maybe extend the number of years you can stay on welfare without working. Or maybe a $300 check to everyone in the 99%.
R Terry October 04, 2012 at 10:49 PM
Apparently Ducommun didn't get the memo...they are not supposed to do that until AFTER Obama is re-elected.


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