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Automatic defense cuts to cost civillian jobs in R.I.

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By Business staff

Rhode Island could face $34.1 million in U.S. Department of Defense civilian payroll cuts if automatic spending cuts, called sequestration, start on March 1, according to data released by the Pentagon.

Defense Secretary Leon Panetta told Congress that if a budget deal isn't reached to avoid the spending reductions, he will have to shorten the work week for the "vast majority" of the 8,000 civilians working for the Department of Defense.

Panetta told Congress that the workers would lose one day of work per week for up to 22 weeks. The 20 percent pay cut would probably start in late April.

Pentagon figures indicated that Rhode Island's civilian payroll was $403 million for the 2012 fiscal year and about $368.9 million for the 2013 fiscal year. (Associated Press)
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