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.

The Week Ahead

Last week we blogged about Maryland's showing in the Census Bureau's State and Local Government Finance Summary for 2011.

Also last week, the Maryland Insurance Commissioner released the premium rates for the individual health care plans to be sold through the state's insurance exchange in October. The premiums are much lower than originally estimated and are among the lowest of the states who so far have released cost information for their exchange options.

For the week of July 29th through August 4th:

• On Monday, July 29th, the Alcoholic Beverages Article Review Committee meets to continue the review of special venue licenses at 5pm  in the Judiciary Training Room at 2009F Commerce Park Drive in Annapolis.
• On Tuesday, July 30th, the Bureau of Labor Statistics (BLS) will publish the monthly Metropolitan Area Employment and Unemployment figures for June 2013.
• Also on Tuesday, the Council for the Procurement of Health, Education, and Social Services meets at 1:30 pm in room 241 of the House Office Building at 6 Bladen Street in Annapolis. The meeting subject is state procurement.
• Later on Tuesday, the Maryland Health Care Commission Center for Information Services and Analysis will be holding its third meeting of the Performance Practitioner Measurement Work Group from 3pm to 5pm at the Maryland Health Care Commission building at 4160 Patterson Avenue in Baltimore.
• On Wednesday, July 31, the Capital Debt Affordability Committee gathers at 1:30pm in the Assembly Room (114-116) at the Goldstein Treasury Building on 80 Calvert Street in Annapolis to conduct a legislative review and to examine the size and condition of tax-supported debt.
• Later on Wednesday, the Workgroup on Access to Habilitative Services Benefits meets from 2pm-4pm in the Maryland Insurance Administration Hearing Room on the 24th floor of St. Paul Plaza at 200 St. Paul Place in Baltimore. 
• On Friday, August 2, BLS will issue its Employment Situation report for July.

The Week Ahead (Midweek Edition)

Welcome to the midweek edition of The Week Ahead, courtesy Hurricane Sandy. Hopefully our readers were as fortunate as we were in this storm, but our thoughts go out to those who still lack power, sustained damage to their homes or business, or lost loved ones. At times like these we think particularly of the homeless and others in our community who lack adequate shelter everyday, let alone during a major storm or hurricane. We also can't help but notice, as the NY Times did in a pre-storm editorial, the value of government coordination in disaster relief and preparedness. 

Last week Neil Bergsman was quoted in a widely reprinted Capital News Service story about the potential effect of sequestration on Maryland, a MontgomeryVillagePatch.com story about gambling ad claims, and Dan Rodricks' column refuting defenders of the 1 percent.

Yesterday, the Bureau of Labor Statistics (BLS) released metropolitan area employment figures. All four metro areas in Maryland, plus the DC metro, had declining unemployment rates compared to one year ago.

Wednesday, October 31st

• Joint Committee on Fair Practices and State Personnel Oversight meets for an update on the state Equal Opportunity Program and personnel matters. 10am in room 3 East, Senate Office Building, Annapolis.
• Joint Committee on Pensions meets to discuss requested legislation and the optional retirement program. 2pm in room 120, House Office Building, Annapolis.
• Board of Public Works meets. 10am in the Governor's Reception Room on the second floor, State House, Annapolis.

Friday, November 2nd

• Joint Committee on Health Benefit Exchange Financing meets. Noon to 2pm at the Maryland Health Care Commission, main conference room, 4160 Patterson Avenue, Baltimore. 
• BLS releases national employment figures for October. The U.S. unemployment rate declined the last two months, to 7.8 percent in September.

The Week Ahead (Orioles Make the Playoffs Edition)

Today is an important date for two reasons. First, it is the day when more than 250 new state laws go into effect including employee and job applicant protections for personal online accounts, and requiring apartment buildings with more than 10 units to recycle. Second, today is the first day of the federal fiscal year. While Congress passed a continuing resolution to fund the federal government through next March, the threat of federal cuts still looms over Maryland's economy.

Monday, October 1st

• Exchange Financing and Sustainability Advisory Committee of the Maryland Health Benefit Exchange Board meets. 9:30-11:30am in the Maryland Health Care Commission large conference room, 4160 Patterson Avenue, Baltimore.
• Capital Debt Affordability Committee meets to decide on their recommendation for the total amount of new state debt that may prudently be authorized for the next fiscal year. 3pm in the Treasury Building Assembly Room, 80 Calvert Street, Annapolis.

Tuesday, October 2nd

• Joint Committee on Administrative, Executive and Legislative Review meets to discuss proposed Department of Health and Mental Hygiene regulations.  2:30pm in room 130, House Office Building, 6 Bladen Street, Annapolis,
• Task Force on the Establishment of a Statewide Spay/Neuter Fund meets. 1pm in room 250, House Office Building, Annapolis.

Wednesday, October 3rd

• Joint Committee on Federal Relations conducts a site visit to the federal Food and Drug Administration (FDA) to discuss the nexus between state and federal regulatory efforts. 10am at the FDA Headquarters, 10903 New Hampshire Avenue, Silver Spring.
• Board of Public Works meets (the pre-meeting will be held at 9:45am in room 217). 10am in the Governor's Reception Room, Second Floor, State House, Annapolis.
• Work Group on Access to Habilitative Services Benefits meets. Meeting information and meeting notes are available on the Maryland Insurance Administration (MIA) web site. 9-11am, 24th Floor, St. Paul Plaza, 200 St. Paul Place, Baltimore.
• Maryland Community Health Resources Commission (CHRC) reviews the Health Enterprise Zone call for proposals, CHRC's budget for FY 2014, and grantee modification requests. Keep an eye on the Commission's web site for changes to the time of this meeting. Noon in room 240, House Office Building, Annapolis.
• Bureau of Labor Statistics (BLS) releases metropolitan-level employment statistics for August 2012.

Thursday, October 4th

• Southern Maryland Higher Education Council meets for a work session.  10am to noon in the conference room, Courthouse Square Office Building, 205 Main Street, Prince Frederick.
• Maryland Nonprofits offers Taking Your Board to the Next Level of Success. This training builds on a popular breakout session at our parent organization's annual conference. For more information and to register visit Maryland Nonprofits' events page. 

Friday, October 5th

• BLS releases national employment data for September 2012. The national unemployment rate fell two tenths of a percentage point in August, to 8.1 percent.