BILL ANALYSIS �
AJR 46
Page 1
Date of Hearing: August 14, 2012
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AJR 46 (Block) - As Introduced: August 7, 2012
SUBJECT : Operation San Diego
SUMMARY : This measure supports the advocacy efforts of
"Operation San Diego" to promote to Congress and the President
the importance of military spending in the San Diego region and
its impact on the economy and to advocate the importance of
maintaining strong, continued military spending in the San Diego
region. Specifically, this bill :
1. Resolves that the Legislature fully supports the
advocacy efforts of Operation San Diego to promote to
Congress and the President the importance of military
spending in the San Diego region and its impact on the
economy and to advocate the importance of maintaining
strong, continued military spending in the San Diego
region;
2. Resolves that the Legislature urges Congress and the
President to adopt an alternative plan to sequestration
that will preserve and grow the San Diego region's military
assets; and
3. Directs the Chief Clerk of the Assembly to transmit
copies of this resolution to the President and Vice
President of the United States, to the Speaker of the House
of Representatives, to the Majority Leader of the Senate,
to each Senator and Representative from California in the
Congress of the United States, and to the author for
appropriate distribution.
FISCAL EFFECT : This measure is not keyed fiscal.
COMMENTS : According to the author,
The San Diego Regional Chamber of Commerce, the San Diego
Regional Economic Development Corporation, CONNECT, the San
Diego Military Advisory Council, and other local business
and military groups have formed "Operation San Diego" to
highlight the potential impacts of the United States
AJR 46
Page 2
Department of Defense spending cuts and to develop and
sustain a comprehensive regionwide strategy to protect and
grow the San Diego region's military assets.
The San Diego Regional Economic Development Corporation
estimates that 31,000 jobs in the San Diego region could be
lost as a result of cuts to the United States Department of
Defense budget.
These cuts and immediate job losses will have long-range
effects, including decreased consumer spending due to new
economic uncertainty, loss of research and development
investment in innovative technologies in San Diego and the
state, and added disruption to the United States economy at
a critical point in our economic recovery at all levels?
These cuts and immediate job losses will severely impact
the San Diego region's struggling economy?
It is likely that on January 2, 2013, the U.S. Department of
Defense (DoD) budget will be drastically reduced. The Balanced
Budget and Emergency Deficit Control Act of 1985 set deficit
targets. That law stipulated that if spending exceeded the
specified targets, a process known as sequester would go into
effect. Last August, as part of a negotiated deal, Congress
agreed on $900 billion in spending cuts and the creation of the
Joint Select Committee on Deficit Reduction (the
"supercommittee"). The supercommittee was directed to create a
plan for $1.2 trillion more in deficit cuts over a decade. If
the supercommittee failed, or if Congress rejected the panel's
recommendation, automatic spending cuts would start Jan. 2,
2013.
Because of the failure of the congressional supercommittee to
agree on a deficit reduction plan, the 2011 Budget Control Act
automatically cuts about $500 billion from the defense budget.
These cuts fall on top of $487 billion in DoD reductions.
Whether or not a strategy will emerge to avoid sequestration and
if not, what the effects of sequestration will be are
speculative at this point. However, sending a strong message
and taking a position of vigilance and concern about the DoD
budget is wise in the face of so much uncertainty.
REGISTERED SUPPORT / OPPOSITION :
AJR 46
Page 3
Support
None on file.
Opposition
None on file.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550