Federal shutdown trickles down to states

WASHINGTON, Oct. 1 (UPI) -- Governors across the United States called on Congress to solve the budget crises, saying the shutdown jeopardizes states' delicate recovery from the recession.

"Unfortunately, the possible consequences to state economies of a federal shutdown or not increasing the national debt limit are severe," the National Governors Association wrote to congressional leaders Monday.

The letter, signed by NGA Chairwoman Mary Fallin, Republican governor of Oklahoma, and NGA vice chairman John Hickenlooper, Democratic governor of Colorado, said the uncertainty on a federal level from a shutdown trickles down to "uncertainty and instability at the state level."

"That uncertainty can lead to the suspension of programs and services, increased borrowing or even layoffs," Fallin and Hickenlooper said.

In terms of a shutdown, not all states are affected equally, Stateline.org reported Monday. The heaviest concentration of federal civilian workers lives in Virginia, Maryland and the District of Columbia, with California and Texas also having significant numbers of federal employees.

As the midnight deadline passed to fund the federal government, states added up potential losses, Stateline.org said, including:

-- Visitors to Arizona's national parks, including the Grand Canyon, spend $2.7 million a day, which would be gone in a shutdown.

-- In Colorado, where the federal government is the state's largest employer, officials expressed concern about pending federal disaster aid to address millions in dollars in property and infrastructure losses from recent floods.

-- In New Jersey, where Superstorm Sandy devastated the coastline nearly a year ago, rebuilding efforts could be delayed if federal funds drop off.

-- In Oregon, the state's deputy chief financial officer expressed worry about the loss of federal fund for safety net programs.

-- Virginia state officials were considering drawing on their state contingency fund to offset dollar losses from Washington.