A new report released today by a Durham research group says North Carolina is suffering “devastating costs” from the Iraq war and challenges the state’s efforts to promote itself as the most military-friendly state in the nation.

The report, “North Carolina at War,” argues that the state is losing more than gaining in its push to attract more defense spending.

“State officials are pushing hard to increase North Carolina’s dependence on the military, touting big economic gains — but what do we lose in the bargain,” said Chris Kromm, director of the non-profit Institute for Southern Studies, which published the study. “Leaders need to show down and look at the costs, from lost lives and damaged communities, to the ‘boom-bust’ nature of war spending.”

The report was issued to coincide with the fourth anniversary of the Iraq war and as a response to last year’s launch of the N.C. Military Foundation, a public-private effort to lure more defense contracts to the state.

North Carolina ranks No. 3 nationally in the number of active-duty military personnel but 25th in private-contractor defense spending by location of where the work was performed, according to a Defense Department ranking.

Lt. Gov. Beverly Perdue helped spearhead the foundation, which is led by retired generals and corporate leaders. The effort was lauched in December with a $1 million grant from North Carolina companies.

The report examines what it calls the costs that North Carolina confronts as a result of the Iraq war, including casualties from state military bases, financial costs to North Carolina taxpayers and the economic instability for local communities with shifting troop deployments.

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