DiNapoli: Federal government shutdown may hurt New York

2011-04-07T23:08:00Z 2011-10-05T10:38:42Z DiNapoli: Federal government shutdown may hurt New YorkBy Robert Harding Auburn Citizen
April 07, 2011 11:08 pm  • 

President Barack Obama, Speaker of the House John Boehner and Senate Majority Leader Harry Reid have met in Washington to try and reach an agreement to avoid a federal government shutdown.

How a shutdown would impact New York was an issue addressed by New York State Comptroller Tom DiNapoli Thursday.

DiNapoli issued a four-page report looking at the possible effects of a shutdown on state government. The comptroller concluded that, initially, the impact would be "modest." But if the shutdown lasts longer, there could be "negative economic implications" for New York.

"New York is trying to get its fiscal house in order. A federal shutdown would be disruptive in the short term and damaging in the long term. It could create a cash flow problem for our state and interrupt important capital projects," DiNapoli said in a statement. "A shutdown would result in waste and inefficiency, at both the federal and state level, at a time when states - and taxpayers - can least afford it."

Here's more from the press release sent by DiNapoli's office:

In state fiscal year (SFY) 2010-11 nearly 37 percent, or almost $50 billion, of New York's total All Governmental Funds disbursements were federally financed. While the immediate impact is likely to be modest, an extended inability to draw down certain federal funds could cause cash flow challenges for the state. More than 126,500 civilian federal employees work in New York state. In addition, approximately $687 million in federal funds were used to either partially or fully fund state employees. An undetermined number of these employees would be impacted by a shutdown.

DiNapoli, like others have mentioned, also said that troops will not get paid (they will earn money during a shutdown, but they will not receive a paycheck). Federal services, like income tax returns, could also be delayed and state infrastructure projects that utilize federal funding could be affected.

Here's the full report issued by DiNapoli's office:


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