The Nation’s governors on Monday urged Congress and the Obama administration to avoid a shutdown of the federal government, warning the failure to do so will have severe adverse consequences for states.
A federal shutdown will occur after midnight Monday if Congress fails to enact a continuing resolution to keep the federal government in business as the new fiscal year starts on Tuesday. A CR is needed because Congress has not approved any of the appropriations bills for the fiscal 2014.
“States are partners with the federal government in implementing most federal programs,” the governors said in a two-page letter signed by NGA chair Oklahoma Gov. Mary Fallin that was sent to Congressional leaders. “A lack of certainty at the federal level from a shutdown therefore translates directly into uncertainty and instability at the state level. That uncertainty can lead to the suspension of programs and services, increased borrowing costs or even layoffs — all actions that will weaken our economies and potentially stall the national economy.”
The letter, which was also signed by Colorado Gov. John Hickenlooper, also said that while short-term budget solutions may avoid the pitfalls of a shutdown, they “fail to provide the level of stability needed for long-term growth and prosperity.”
The governors urged Congressional leaders to resolve the budget impasse and put the federal budget on a sustainable and long-term fiscal path.
The governors said Congress should follow four key principles when taking action.
The first is that any federal reforms be designed to produce savings for both the federal and state governments. Another is that deficit reduction not be accomplished by shifting costs to states or by imposing unfunded mandates.
The governors also want states to be given increased flexibility to create efficiencies and achieve results. Finally, Congress should not impose so-called maintenance of effort provisions of states as a condition of funds, they said.
The governors pointed out that they have “tough choices” over the past several years to balance state budgets and make do with less funding. As a result, they said, state economies are growing and unemployment is falling, they said.
The letter was sent to Senate Majority Leader Sen. Harry Reid, D-Nev., Senate Minority Leader Mitch McConnell, R-Ky., House Speaker John Boehner, R-Ohio, and House Minority Leader Nancy Pelosi, D-Calif.
