Government Shutdown Set To Ripple Through States As Layoff Notices Begin To Go Out

Saturday, October 12, 2013
By Paul Martin

DAVID A. LIEB, AP
BusinessInsider.com
Oct. 12, 2013

JEFFERSON CITY, Mo. (AP) — 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 stalemate 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 revenues. As federal dollars dry up, so do state programs.

Across the nation, about a dozen states already 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.

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