Lockheed Closure to Impact 2014 Township Budget by $360K

The closing of Lockheed Martin will cost the township an estimated $360,000 in local tax revenue in 2014, according to information posted on the Newtown Township website. 

The township Board of Supervisors will consider a budget Tuesday that takes into account those revenue changes.

The company announced earlier this month that it plans to close its Newtown facility by 2015. It will be a phased process over the next 12 to 18 months, according to details from the company.

Since that announcement was made, Township Manager Kurt Ferguson has edited the budget to reflect the loss of revenue for the township, according to a memo posted on the township website.

Ferguson explains he has estimated an earned income tax reduction of $337,500 in 2014 as a result of the closure, plus a decrease of $23,500 in the local services tax.

The closure is part of a larger move by Lockheed to consolidate several of its domestic facilities and reduce its workforce by 4,000 positions. Other facilities that will be closed include locations in Akron, Ohio, Goodyear, Ariz. and Horizon City, Texas.

In a statement, the company said the measures are being taken to improve the affordability of its products and services.

“These actions are in response to continued declines in U.S. government spending,” the company said in a statement when it announced the closings.