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State Prepares for Possible Federal Government Shutdown

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(Credit:  State of Connecticut)

(Credit: State of Connecticut)

HARTFORD, Conn. (AP) _ Connecticut’s budget office is working with state agencies to prepare for a possible federal government shutdown.

In a letter to agency heads, released Tuesday, Office of Policy and Management Secretary Benjamin Barnes said if Congress fails to reach a budget deal there could be “significant impact” on staff and programs that rely on federal funding. He said the state might have to pay the salaries of state employees working on federal programs and cover the federal share of entitlement programs such as Medicaid.

Also, Barnes said a federal shutdown could have “a serious negative impact on state revenues” this year and in fiscal year 2015, possibly undermining improvements in the state’s economy.

Barnes has asked agency chiefs to provide an assessment of potential impacts and contingency plans by Oct. 1.

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