I am pleased to submit our assessment of the impact of federal defense expenditures in California. This report, Impact of Defense Cuts on California, was prepared pursuant to the Commission's mandate to examine how federal expenditures affect the state's economy. Much has occurred since our last review of the defense industry in 1990. Aerospace cutbacks have accelerated, more military bases have been scheduled for closure, and the state is mired in recession. This report will give an overview of military spending in the state, and put the defense industry and recent cutbacks into the broader context of California's economy.
We have made several improvements in the layout of the report to make it more convenient for you to review. There is a strong visual orientation, using graphics to reinforce key points. The report is divided into four sections, each of which begins with a summary of primary findings to focus on the major themes. Finally, in the Appendix, you will find more detailed information about defense contract spending. We have written comments accompanying the data tables to highlight significant issues.
Clearly the defense industry is important to our state and the cutbacks have made the current economic difficulties even worse. However, there are many misconceptions about the role that defense plays in California. The goal of this report is to help put military spending and defense cutbacks into better perspective. We hope that you find it to be a useful source of information about this important issue which faces our state.
Commission on State Finance, "Impact of Defense Cuts on California" (1992). California Agencies. Paper 32.