Federal shutdown bad news for Maryland

For the first time in 17 years, much of the federal government has shut down. This is bad news for Maryland and the nation's economy and for the public that benefits from a wide array of public services.

The parts of the federal government that haven't shut down are either "essential" (mostly activities that protect life and property); are funded outside of the appropriations process (like Medicare and Social Security); or have other funds available, at least for a little while (for example, Medicaid has enough money for the next quarter, and housing vouchers will be unaffected in October).

But lots of other important programs will be affected, including many that help our most vulnerable neighbors. For example:

• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is not funded for FY 2014. States do have a few funding streams they can use to temporarily cover the loss, but they won't last long.
• Temporary Assistance to Needy Families (TANF) has now expired. States should have already appropriated the matching funds required for the program, and could potentially use these funds to maintain the program until a new appropriation or continuing resolution is passed.
• Child care funding is in the same situation as TANF.

If you want to learn more about a specific program, check out the contingency plans by federal agency.

Here are a few estimates of what the shutdown will cost Maryland:

• Furloughs could cost Maryland $5 million a day in income and sales tax collections and perhaps $15 million a day in overall economic activity, according to the governor's office.
• Dr. Daraius Irani, executive director of the Regional Economic Studies Institute at Towson University estimates that a partial government closure could mean between $18 million and $68 million a day in lost income for Maryland workers, and between $700,000 and $2.5 million a day in lost income tax collections. His analysis does not include lower tax collections from furloughed workers cutting back on their spending.
• Dr. Stephen Fuller, director of the Center for Regional Analysis at George Mason University, estimates the DC region (not just Maryland) could see losses up to $200 million a day. Dr. Fuller's analysis excludes tourism and cuts to direct services such as new Medicare or Social Security applications, small business loans, and child-care subsidies.
• The Baltimore Sun also has a slideshow illustrating the shutdown's effects on Maryland.

In other more positive news, the Maryland Health Connection opens at noon today. Part of the Affordable Care Act (ACA), this exchange allows individuals and small businesses to shop for health insurance, including using tax credits if they qualify. Implementation of the ACA is unaffected by the shutdown.