The federal government spends billions of dollars buying goods and services from private sector firms each year.
Just as the fortunes of businesses dependent on federal spending ebb and flow with federal budgets, so do the budgets of the states where those employers are concentrated.
And while non-defense contract spending has supported economic growth in many states over the past decade, it will contract when budget reform becomes a priority.
When that happens, states like Virginia whose budgets are more dependent on that spending may experience shortfalls.
