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

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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.

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Budget cuts cause companies to diversify

Defense contractors are turning to the commercial sector, as budget cuts hit their No. 1 customer.

Absorbing military into job market poses challenge in current economy

The economy faces the challenge of absorbing military members in the local job market at a time when uncertainty is constraining the private sector’s ability to create more jobs, panelists at a recent forum said.

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