Sequestration to impact military bases

GROTON, Conn. (WTNH) -- Starting next month the effects of the sequestration are expected to be felt at military bases across the country.

We all learned a few years ago during the base closure hearings how much the submarine base in Groton affects the overall economy in the state. And now with this sequestration we are seeing why business leaders are leery.

The celebrations in this military community extend beyond Groton and so do the hardships. The first effect of the sequestration forces civilian workers to take a one day a week furlough.

"We're getting a little more concerned than we were a couple of weeks ago," said Sheridan, Chamber of Commerce of Eastern CT. "We really thought there would be some conclusion, some closure."

Sheriden says the not knowing is doing damage, a psychological effect on many businesses.

"They're just not going to invest. They're not going to hire," Sheridan said. "They'll be cautions about where they spend their money and how they spend their money, so it has a ripple effect."

One business, which is literally a stone's throw away from the base, is 7 Seas Pizza. News 8 visited the restaurant last year and spoke to the owner when he had just taken over and was very optimistic. Now we want to see if this causes concern.

"They've all been talking about it. They're like, we're gonna have to take a day off, so that means we're gonna lose business over here," said Joe Babin, 7 Seas & Restaurant.

Seventy to 80 percent of his business is deliveries and take out from the base and naval housing.

"So when business is good over there, we're great. When it's not so good over there, we're slow. So there's definitely a correlation between us," Babin said.

The President of the Chamber of Commerce says the longer the sequestration continues the more of a ripple effect it will have in the state.