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Springfield Reublican: Sequestration costs state $1.3 billion in lost revenues and 14,000 in reduced job growth

The Republican covered the release of a UMass Donahue Institute study which examined the impact that federal sequestration cuts have had on the Massachusetts economy. The study, completed by the Economic and Public Policy Research(EPPR) group found that the Bay State lost $1.3 billion and 14,000 jobs when federal funding in areas including defense, health care, and life sciences research & development was curtailed.  Because of the large amount of federal research grants and defense contracts that come to the high-tech industry here, the state is estimated to have been the second-hardest hit in the country.

The article highlights cut-backs at defense-industry manufacturer L-3KEO in Northampton, where 19 positions were recently eliminated.

“One of the things this study does is provide a customized quantitative analysis of the economic hit to the state. A lot of people have talked in an abstract way about sequestration,” said EPPR director Daniel Hodge.

Read article: Sequestration costs state $1.3 billion in lost revenues and 14,000 in reduced job growth

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