Debt Ceiling Uncertainty Puts States at Risk
07/21/2011 - The federal debt ceiling debate is already complicating life for state and local governments.
If the federal government were to stop paying some employees or contractors next month, or were to hold back Social Security checks, it could have a “profound effect on state and local tax revenues,” according to a report issued this week by the Pew Center on the States. On top of that, a delay in the payments that states and local governments rely on would pose cash-flow problems for many states. The Pew report noted that the federal government owed $10.4 billion in tuition assistance next month, when the academic year begins.
Read the full article at nytimes.com.
- States' Fiscal Health