Federal Government Shutdown Could Hit Maryland Economy Hard

Today’s Baltimore Sun includes discussion about a potential shutdown of federal government agencies, and the effects on Maryland communities and economy. With the state’s proximity to the DC area, and the presence of many federal facilities within the state, Maryland’s economy would be affected more than those of most states.

From the article:

The stakes are higher here than in most states. Maryland ranked fourth in the nation for per-capita federal spending in fiscal year 2009, the most recent government data. And it’s a procurement powerhouse, with businesses in the state raking in more than $34 billion that year in federal contracting dollars.

Richard Clinch, director of economic research at the University of Baltimore’s Jacob France Institute, estimates that 15 percent to 20 percent of Maryland’s economy can be traced to federal spending on wages and contracting.

A shutdown would not be catastrophic, he said. But paired with the likelihood of budget cuts to follow, it would not be good news for the state. “This takes the wind out of the recovery here in Maryland,” Clinch said.

Read the full article here.

Michael Sanderson

Executive Director Maryland Association of Counties

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