The Daily Transcript looks at sequestration and the major impact it will have on San Diego, small businesses and more in this special report.

  • Defense favoring modernization over force size

    As a result of sequestration, either military force size will be preserved or the Defense Department will invest in modernization.

  • Sequestration offers opportunity to innovate

    The automatic government spending cuts known as sequestration may not be all doom and gloom, and could be an opportunity to innovate, an executive at ViaSat said.

  • MCAS Miramar Air Show will go on

    Col. John Farnam, MCAS Miramar commanding officer, refuses to let sequestration ground the annual Marine Corps Air Station Air Show in San Diego this year.

  • Miramar Air Show not canceled -- yet

    Each year, the military shows off the fastest and most advanced aircraft in the world in front of hundreds of thousands of spectators at the annual Marine Corps Air Station Air Show in San Diego.

  • Furloughs to affect military health care

    The VA San Diego Healthcare System saw nearly 75,000 patients walk or roll through its doors to receive medical, surgical, mental health, geriatric, spinal cord injury and advanced rehabilitation services in fiscal year 2012.

  • Ft. Eustis to lose 333 positions as Army downsizes

    NORFOLK, Va. (AP) -- Fort Eustis says it will lose nearly eight percent of its military workforce as a result of a massive restructuring taking place throughout Army.

  • 101st seeking to save 'Band of Brothers' regiment

    FORT CAMPBELL, Ky. (AP) -- The 101st Airborne Division is trying to save its illustrious 506th Infantry Regiment, whose origins date to World War II's fabled “Band of Brothers,” from deactivation under the Army's massive restructuring.

  • Unmanned systems are the future, Navy captain says

    Hockey legend Wayne Gretzky once said, “I skate to where the puck is going to be, not where it has been,” and the commanding officer of Space and Naval Warfare Systems Center Pacific says the drone industry should adopt the same mentality.

  • SPAWAR adjusts to new budget environment

    Space and Naval Warfare Systems Command (SPAWAR) employs about 5,000 people in San Diego, but thanks to sequestration budget-tightening, that number won't rise anytime soon.

  • USS Thach returns from deployment early

    The guided-missile frigate USS Thach (FFG 43) will return to San Diego from its deployment to the 4th Fleet Area of Operations (AOR) on April 12.

  • Blue Angels will not fly over Miramar this year

    Sequestration will keep one of the most popular aviation acts in the world from dazzling crowds at the Marine Corps Air Station Air Show in San Diego this fall.

  • DHS re-evaluating furlough plans, overtime cuts

    WASHINGTON (AP) -- The Homeland Security Department says it's re-evaluating plans to furlough border agents and cut overtime because of the automatic federal government spending cuts.

  • UAV industry unites to promote San Diego

    A broad coalition of local business groups and high-tech companies launched a new regional unmanned systems effort that has the potential to increase investment in the region, spark job growth and bring additional companies to the area.

  • C4ISR conference expected to beat '12 figures

    Sequestration will likely squash some defense conferences this year, but one in San Diego appears to be doing just fine.

  • Continental Maritime to lay off 185 workers

    U.S. Navy ship repair contractor Continental Maritime of San Diego will lay off 185 employees effective April 12, according to a notice filed with the state.

  • Navy sends USS Freedom to Singapore amid budget cuts

    The U.S. Navy's hottest new ship and the centerpiece of its renewed focus on Asia isn't its largest vessel, or its most technologically advanced. But it has advantages that its bigger siblings lack.

  • Businesses in military towns brace for budget hit

    FAYETTEVILLE, N.C. (AP) -- Like many who make their living in the commercial strip outside the gates of Fort Bragg, Mike Thomas is confident the $85 billion in automatic military spending cuts will hurt sales at his used car lot and rim shop.

  • General Dynamics NASSCO warns of layoffs

    General Dynamics NASSCO, a primary constructor of ships for the U.S. Navy, warned about 1,040 employees on Monday of indefinite layoffs that may come in late April due to uncertainty created by the automatic U.S. budget cuts that took effect last week.

  • Northrop zeroes in on San Diego

    Northrop Grumman Corp.’s already-large unmanned aircraft business in San Diego is about to get even bigger.

  • Pentagon Cuts Hit Funds Paying Lockheed to General Dynamics

    March 4 (Bloomberg) -- The Pentagon has offered little guidance to contractors that may be hurt by $46 billion in defense-spending cutbacks over the next seven months, even as a budget document showed the effect on procurement accounts that pay companies from Lockheed Martin Corp. to Raytheon Co.

  • Marines brace for sequestration

    Editor's note: The following article is part of an ongoing series looking at the effects of sequestration.

  • Pentagon notifies Congress of likely furloughs

    WASHINGTON -- Defense Secretary Leon Panetta told Congress on Wednesday that if automatic government spending cuts kick in on March 1 he may be compelled to furlough the “vast majority” of the Defense Department's 800,000 civilian workers.

  • BAE Systems could lose San Diego work force

    The hundreds of BAE Systems employees who repair ships when they sail into San Diego could disappear because of the Navy’s plans to potentially cancel maintenance work.

  • Naval Base Coronado sees some rays of light amid cloudy budget future

    Sequestration and the continuing resolution threaten to cut major military programs across the United States, but it’s not all doom and gloom at Naval Base Coronado.

  • Trade official tells defense firms to export more

    As the defense industry copes with Pentagon cutbacks, a U.S. trade official last week urged local military contractors to look abroad for more customers.

  • Senate GOP blocks Hagel vote for now

    WASHINGTON (AP) — Senate Republicans on Thursday stalled the nomination of former GOP senator Chuck Hagel as the nation's next defense secretary over unrelated questions about President Barack Obama's actions in the aftermath of the deadly raid on the U.S. diplomatic mission in Libya.

  • Military weighs cutbacks, shifts in drone programs

    LANGLEY AIR FORCE BASE, Va. (AP) — The Pentagon for the first time is considering scaling back the massive buildup of drones it has overseen in the past few years. It would be both to save money and to adapt to changing security threats and new areas of operation — such as east Asia — where drones are more likely to be detected and shot down.

  • Pentagon official blames gridlock for looming cuts

    WASHINGTON (AP) -- The automatic budget cuts due to go into effect next month are “the collateral damage of political gridlock,” a senior Pentagon official told a congressional committee Tuesday.

  • US to cut carrier fleet in Persian Gulf to 1

    WASHINGTON (AP) -- The Pentagon is cutting its aircraft carrier presence in the Persian Gulf region from two carriers to one, the Defense Department said Wednesday, in a move that represents one of the most significant effects of budget cuts on the U.S. military presence overseas. The decision comes as Washington struggles to find a way to avoid sharp automatic spending cuts set to strike the Pentagon and domestic programs next month.

  • AFCEA West 2013 attendees do more with less

    Despite the ongoing ban on federal travel, 10,000 people in the defense industry made it to San Diego for this year’s AFCEA West conference.

  • Marine leader: Infantry skeptical about women

    SAN DIEGO (AP) -- The commandant of the Marine Corps said the infantry side of the most male of all military branches is skeptical about how women will perform in their units, and some positions may end up closed again if too few females meet the physically demanding standards of combat.

  • Naval chief outlines budget's impact on San Diego

    Adm. Jonathan Greenert, chief of naval operations, outlined some of the changes on board for San Diego should budgetary constraints reach their peak.

  • Pacific Fleet commander lays out plan

    Adm. Cecil Haney plans to take his first flight on the Osprey V-22 during his trip to San Diego this week.

  • Admiral warns of ‘three hungry wolves’ chasing Defense Department budget

    Adm. James Winnefeld, vice chairman of the Joint Chiefs of Staff, almost wasn't allowed to deliver his kickoff keynote address at the 2013 AFCEA West conference.

  • Springtime defense conference axed in 2013

    The defense budget crisis has led to the cancellation of one annual industry event in San Diego.

  • 'Stubbornly sluggish' growth seen in 2013

    San Diego County's growth will likely slow in 2013, especially if the federal government starts cutting the defense budget, according to a forecast released on Thursday by the National University System Institute for Policy Research.

  • Defense contractors gain reprieve on cuts without long-term fix

    Defense contractors led by Lockheed Martin Corp., General Dynamics Corp. and Raytheon Co. gained a reprieve from U.S. spending cuts that may prove short-lived.

  • Pentagon Prepares to Warn 800,000 Civilian Workers of Furloughs

    Dec. 31 (Bloomberg) -- The Defense Department is preparing to notify its 800,000 civilian employees that some of them may have to take unpaid leave next year if lawmakers can’t agree on a budget deal, according to a U.S. defense official.

  • House Dems, GOP embrace cuts in defense spending

    WASHINGTON (AP) -- A bipartisan group of House members says any budget deal to avert the so-called “fiscal cliff” of automatic tax hikes and spending cuts should include “substantial defense savings.”

  • As sequestration nears, companies hold on

    While most companies are gearing up for their festive holiday parties this time of year, defense contractors are prepping for a Scrooge-worthy event.

  • Pentagon begins planning for massive budget cuts

    WASHINGTON (AP) -- The Defense Department has begun planning for the roughly $500 billion in personnel and program cuts over a decade that will be needed if Congress and the White House fail to reach a deal that would avoid the double hit of tax hikes and automatic spending reductions dubbed the “fiscal cliff.”

  • Defense Executives Say More Cuts Acceptable to Avert Sequester

    Dec. 3 (Bloomberg) -- While defense companies can handle additional Pentagon budget cuts, across-the-board reductions called for under sequestration must be averted, Northrop Grumman Corp. Chief Executive Officer Wes Bush and other industry executives said.

  • Defense Chiefs Pessimistic on Fiscal Cliff Deal by End of Year

    Nov. 28 (Bloomberg) -- The heads of defense contractors Northrop Grumman Corp. and Exelis Inc. said they’re not optimistic the federal government will reach a deal by the end of the year to avoid the so-called fiscal cliff.

  • A legal look at sequestration

    One thing is for sure: Either Mitt Romney or Barack Obama will be inaugurated as president in Washington, D.C. on Jan. 21. It’s still unclear, however, how sequestration will play out if it kicks in as planned on Jan. 2.

  • In veteran-heavy states, military issues magnified

    NORFOLK, Va. (AP) -- The far-flung swing states that have the most sway in the presidential election have something else in common -- a large share of military veterans who are getting special attention from the fiercely dueling campaigns.

  • Automatic spending cuts are issue in some races

    LEESBURG, Va. (AP) -- In many ways, it's an odd topic to make a central campaign issue: sequestration.

  • Behind-the-scenes sequestration talk revealed in San Diego

    The man tasked with defending San Diego’s strong military position from more than 2,000 miles away finally broke his public silence on Wednesday, dishing the inside scoop on politicians and their stance on sequestration.

  • Sequestration's uncertain impact on jobs

    Lockheed Martin Corp. (NYSE: LMT) reacted to a challenging defense budget by cutting hundreds of jobs this year, but now the contractor won’t warn employees if their jobs are at stake because of the possibility of sequestration.

  • Smaller contractors adjust, prepare for sequestration cuts

    Lemon Grove-based JCI Metal Products is in freeze mode until it figures out how much the impending budget cuts will affect its business.

  • Sequestration to affect all industries

    The date Jan. 2 will trigger $1.2 trillion across-the-board spending cuts, threatening to kill businesses and jobs. But that message still isn’t getting through to the general public.

  • Defense spending cuts: CA ranked with highest job loss in 2014

    California ranked first with 148,400 expected job losses in 2014 because of cuts in defense spending. While job losses will spread among a wide range of manufacturing industries, many of these jobs tend to be at the direct and indirect suppliers of defense equipment and supplies.

  • Sequestration will hit housing in San Diego

    Sequestration conjures images of unemployment and dried-up spending, but another area likely affected will be housing.

  • Local community colleges respond to increasing military enrollment

    Leaders from San Diego and Imperial counties’ six community college districts gathered aboard the USS Midway Museum on Tuesday to confirm their commitment to veteran students’ education in the face of shrinking budgets and troop drawdowns from overseas.