http://www.bloomberg.com/news/2011-11-17/military-cuts-threaten-defense-dependent-states.html#Virginia, Hawaii and Alaska may suffer the most economic harm from defense cuts of as much as $1 trillion during the next decade, a Bloomberg Government study shows.
Those three states are the most dependent on U.S. military spending, the study found. Virginia, home of the Pentagon and the Norfolk naval base, tops the list with 13.9 percent of its gross domestic product derived from defense spending. Hawaii ranks second, at 13.5 percent, and Alaska is third with 10.7 percent. All other states are in single digits, the study showed.
Bloomberg Government examined military spending by state as Congress considers budget cuts that might threaten the economies of states such as Virginia, where the Defense Department spent $56.9 billion in fiscal 2009, the last year for which comprehensive data were available. The spending came in the form of payroll, contracts and grants.
“It is a big-ticket item for Virginia,” said Richard Brown, the state’s secretary of finance. “That would be quite a blow to Virginia if there would be a major hit.”
more at link...
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While it's horrible that people will lose their jobs if the defense budget it cut, it's also why the MIC stays alive by making sure they control/blackmail congress people by putting defense manufacturing jobs in each state.