States warn more furloughs likely as federal funds dry up
JEFFERSON CITY, Mo. — The federal government shutdown that has idled hundreds of thousands of workers is starting to ripple through states, which are now laying off employees and warning of thousands of additional furloughs if the budget impasse is not resolved soon.
The trickle-down effects highlight the extent to which states are dependent on the federal government. In many states, federal money comprises about a third of all revenue. As federal dollars dry up, so do state programs.
Across the nation, about a dozen states have furloughed hundreds of employees whose paychecks depend on federal money. The layoffs have hit civilians at state National Guard bureaus, workplace safety inspectors and state workers who determine eligibility for Social Security disability benefits, among others.
More state employees could be furloughed this week.
“For me, it couldn’t have come at a worse time,” said Tammy Turner-Lee, a 54-yearold supervisor in Oklahoma’s disability determination office who is likely to be furloughed Friday. “My husband is going through chemotherapy right now. … If we are in furlough status, that means I am going to have to go into credit card debt.”
Medicaid, the biggest federally funded state program, has remained exempt from the cutbacks. But federal officials have said other big state-administered programs — such as food aid for low-income families — might have only enough money to make it through October.
As Congress and President Barack Obama remain at odds over the federal budget, some states have started to prepare for widespread furloughs.
Arkansas estimates that slightly more than 700 federally funded positions will be furloughed as of Monday. That number is up from 551 that were estimated to be on furlough as of Friday.
“The state of Arkansas simply does not have the resources to continue to cover the costs of federal programs,” Gov. Mike Beebe wrote in a recent memorandum to agency directors.
Some states have avoided furloughs by tapping into accumulated federal funds, while others are dipping into state reserves.
Maryland has continued to pay 11,000 employees because the Legislature set aside $100 million to plug holes created by federal budget battles. Kansas Gov. Sam Brownback dipped into cash reserves to avoid 119 furloughs and reinstate dozens of others in an office that handles unemployment benefits.
But Florida Gov. Rick Scott took the opposite approach, ordering agencies not to use state money to cover typical federal expenses.
Furloughs of state workers are slowly mounting. There have been 56 in Maine, more than 100 in Illinois, 244 in Arizona, more than 300 in Virginia and more than 400 in Washington.
The disability office in Oklahoma’s Department of Rehabilitation Services, where Turner-Lee works, halted its outgoing mail to stretch its dwindling federal dollars. But furloughs could kick in by week’s end for 289 full-time and 39 temporary state employees.
The Oklahoma shutdown would affect nearly 18,000 people waiting for word on whether they can receive disability benefits.
The entire staff of the Maine disability determination office already has been furloughed, meaning people with disabilities “are going to incur additional financial hardship,” said Sara Squires, the public affairs director at the nonprofit Disability Rights Center in Augusta, Maine.
Other states such as Pennsylvania, Missouri and Michigan still are bracing for a big hit from the federal shutdown.
About 200 maintenance employees of the Missouri National Guard already are furloughed, but the state has several thousand federally funded employees.
Furloughed federal workers could eventually be paid if the Senate and Obama later approve retroactive wages. But state workers dependent on federal funds could face complications because of quirks in local laws or collective bargaining contracts.