Northern Virginia Technology Council Statement in Response to Defense Secretary Gates' Announcement on Defense Cuts

HERNDON, Va., Aug. 10 /PRNewswire-USNewswire/ -- The Northern Virginia Technology Council's (NVTC) President and CEO Bobbie Kilberg today expressed deep concern over Secretary Gates' announcement that he will cut defense contracting spending by 10 percent a year for each of the next three years and also will recommend closing the U.S. Joint Forces Command in the Hampton Roads region of Southeastern Virginia. This is a very serious blow to Virginia's statewide economy. The economic impact of these decisions on Northern Virginia and Hampton Roads will be particularly devastating.

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According to Stephen Fuller, Director of the Center of Regional Analysis at George Mason University, Virginia received $35 billion in defense contracts in FY 2008, accounting for more than 530,000 contracting and related jobs, with about 70 percent of those contract dollars in Northern Virginia. Fuller further noted that three years of 10 percent cuts to military contracting could reduce the projected economic growth for Northern Virginia by as much as 50 percent.

Yesterday's announcement and the underlying rationale offered in its support are full of ambiguities that raise many more questions than they answer. The perceived cost savings offered thus far are unconvincing. Moreover, the announcement itself is premised on the false notion that the path to cost savings and enhanced efficiency and effectiveness lies in arbitrarily reducing the size of the government's federal contracting workforce.

Statements by Defense officials that these cuts are a preemptive strike to forestall further deep cuts in military spending ring hollow and their impact on Virginia's economy in a time of recession is inexcusable. NVTC has been in communication with our congressional delegation and the McDonnell Administration, and we will work closely with them in response to this situation over the coming days, weeks and months.

The Northern Virginia Technology Council (NVTC) is the membership and trade association for the technology community in Northern Virginia. As the largest technology council in the nation, NVTC serves about 1,000 companies from all sectors of the technology industry, as well as service providers, universities, foreign embassies, non-profit organizations and governmental agencies. Through its member companies, NVTC represents about 200,000 employees in the region. NVTC is recognized as the nation's leader in providing its technology community with networking and educational events; specialized services and benefits; public policy advocacy; branding of its region as a major global technology center; initiatives in targeted business sectors and in the international, entrepreneurship, workforce and education arenas; the Equal Footing Foundation, a 501(c)(3) nonprofit charity that serves local area youth; and The Entrepreneur Center @NVTC which mentors new technology entrepreneurs. Visit NVTC at www.nvtc.org.

SOURCE Northern Virginia Technology Council

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