This week’s top 3 stories take a look at how states are coping with the federal government shutdown. To read last week’s post, click HERE.
States across the country have been affected as governors and state budget directors have been scrambling this week to respond. The overarching message from state leaders: Washington’s inability to resolve problems is hurting communities across the country. States would do well to evaluate how much their budgets rely on federal dollars because it does not appear Washington will be fixing its budget woes anytime soon.
IN MICHIGAN: $18 Million Daily Price Tag
The state budget director warned on Tuesday that the federal government shutdown would cost the state approximately $18 million per day. As a result, state employees whose salaries are funded by the federal government have received furlough notices this week.
IN NEW MEXICO: National Parks Closed for Business
The state has 11 national parks or monuments which have been directly affected the by the federal shutdown. All parks have been closed due to the shutdown, significantly impacted the state’s revenue stream. The state’s most popular park did stay open for business, however, but not as a result of its popularity. That park is actually managed by local government. Read more about how other states are dealing with the closure of federal parks here.
IN VIRGINIA: Proximity Matters
Because of the state’s proximity to the nation’s capital, over 172,000 of its residents are federal government employees. This could create a “ripple effect” on the state’s individual tax and sales tax revenues. Governor Bob McDonnell did not seem worried about the impact of the shutdown on the state, citing “several options” to deal with any federal impacts on the state.
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