U.S. governors press for alternative to impending spending cuts

For federal defense spending, the average is 3.5 percent of state GDP, with Hawaii having the highest at 14.6 percent.

An analysis by Wells Fargo Securities Economics Group last week found that under sequestration states close to the nation's capital and in the South "will be the hardest hit, while states in the Midwest and the West Coast will likely be impacted to a lesser extent."

Governor Peter Shumlin, of Vermont, who also heads the Democratic Governors Association, called the reduced direct funds and potentially harmful economic effects a "double whammy."

"I have no idea what they're going to do down here," he said about Congress reaching an agreement. "All I can tell you is that the President ... seems quite convinced they're actually willing to push the button and undermine the economic recovery and prosperity that we're seeing in our states."

Democratic and Republican governors alike say statehouses and businesses have been left with too much uncertainty as the country approaches sequestration. Federal agencies are only now disclosing where they will cut spending and reduce work forces.

Fallin has pushed since the summer for an alternative and also does not want sequestration repeatedly postponed.

"Do the least harm and give us the flexibility," she said. "It is not good to have the sequester talk every couple of months."

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