March 7, 2013

Maragos: Sequestration and Grumman May Hamper Strong Initial 2013 Economic Recovery on Long Island

Grumman Alone May Result in Loss of 2800 Jobs and $240 Million in Local Wages

Mineola, NY- Initial sales tax revenue gains show an impressive increase of 7.4% over the similar period last year Nassau County Comptroller announced today. This rate is significantly higher than the 4.3% budget forecast and reflects the strong economic recovery after Superstorm Sandy. To date the County received $103 million versus last year’s checks of $95.9 million for the same period.

These gains, however, are not expected to last because of very strong economic headwinds anticipated from expanding Sequestration spending cuts and yesterday’s Grumman decision to relocate about 850 jobs, The Grumman job losses alone will have a ripple effect throughout the Long Island economy, and possibly effect another 2000 local jobs, according to 2012 study by Deloitte that estimated a 2.36 indirect jobs loss multiplier. The total estimated lost wages from the direct and indirect job losses is estimated at approximately $240 million by using the average wage rate for the aerospace and defense industry from the Deloitte study.

“The Sequestration and Grumman are a one two punch that will be felt hard in the Long Island economy,” said Comptroller George Maragos. “It is time for a regional summit of our leaders to develop a 21 century economic plan for growth that draws on the geographic advantages and intellectual strengths of our residents and academic institutions. We must not stand by idly!”

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