RICHMOND--No one is watching what happens in Washington closer than the tens of thousands of Virginians who will be directly affected by the sequester.

Many people will lose their jobs because of the budget cuts and that has Gov. Bob McDonnell desperately hoping for a last minute deal.

McDonnell says the state's economy could lose $4.2 billlion over five years and $1.4 billion in losses for the Navy. Some of that is already happening.

McDonnell is concerned about what he says is the 'disproportionate share of the cuts on the military,' and calls the sequester a 'stupid policy.'

'Nineteen military installations and 25,000 defense contractors. It's bad news. Over 200,000 jobs estimated to be lost over 10 years,' says McDonnell.

Democrats are holding out hope that a deal could include adding revenue. Closing the loophole on people making more than $5 million a year is something Virginia Democratic Senator Mark Warner supports.

President Obama has also made it clear he wants to see additional revenue but McDonnell says sequestration has always been about cuts and cuts only and the President needs to talk about cutting entitlements.

'If you're not going to talk about Medicare and Medicaid, you're not being honest with the American people,' says McDonnell.

Don't miss our special report on this important issue Friday at 7:00 pm. Submit your questions on our Facebook page or on Twitter with the hashtag #hrsequester. More coverage here

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