Wednesday, April 6, 2011

A federal shutdown's impact on states

The New York Times today examines what would happen to states in the event of a government shutdown.

Most of the largest federal programs that states rely on — for crucial safety net programs like Medicaid and food stamps, among other things — would most likely continue to function in the event of a shutdown.

But interruptions of smaller programs could still strain states in the short run, as they find themselves forced to pay the salaries of workers normally paid with federal funds.

The budget officers’ association noted that during the shutdown in 1995, Maryland spent $1.4 million a day to keep its federally paid employees at work.
These facts don't necessarily translate into an argument against a government shutdown. But they do indicate that states should adopt budget plans that don't hinge on welfare payments from the federal government.

1 comment:

Anonymous said...

Amen to that! Kentucky's legislators are far too beholden to the whims of the federal government.