Issue brief discusses ballot measures impact on state budgets.
Congressional Research Service
Federal Reserve System
Macroeconomic Advisers, LLC for Peter G. Peterson Foundation
State Spending for Corrections: Long-Term Trends and Recent Criminal Justice Policy Reform, September 2013
Last night on October 16, Congress voted to pass a bill to fund the federal government through January 15, 2014 and suspend the debt ceiling until February 7, 2014. The Treasury Department will likely be able to take extraordinary measures to continue borrowing past February 7. The Senate passed the measure by a vote of 81-18, and the House followed by approving the measure by a vote of 285-144.
Over the past two weeks, many press articles have discussed the effects of the federal shutdown on states. Topics that have been addressed include the Women Infants and Children (WIC) program, Supplemental Nutrition Assistance Program (SNAP), the closing of national parks, the furloughing of state’s federally funded employees and the implications for state tax revenues. However, less attention has been given to the consequences from the widening economic effects caused by the shutdown and the federal debt ceiling impasse.
As the federal government shutdown continues, state officials are wrestling with difficult questions and challenges as they try to mitigate the shutdown’s impact on their states. Based on information from state budget officers, NASBO has prepared an issue brief describing some of the major challenges states are facing at this moment. This brief also provides examples of major federally-funded programs at risk of closing down or reducing benefits if the shutdown continues.