Facing federal budget cuts – your state’s resilience

Our Hometown Resilience scores include
each state’s vulnerability to federal budget cuts.

Thinking about where you, or your children, should call home in coming years? Consider where Congress will cut back support for job markets and local economies. States' resilience to federal expense cuts varies.

(Yes, I know the budget deficit has come way down, but it’s hard to see Congress loosening the pursestrings anytime soon.)

In South Dakota, federal grants subject to ‘sequester’ comprise over 10% of the state’s revenue. In Delaware, they’re under 5%.

In Maryland, Virginia and DC, almost one worker in 25 has a non-defense job with the federal government. In Connecticut, it’s only one in 250.

Impacts from big non-defense expense seem to me all-but certain in every state in the country. Both parties are committed to major cuts over the next ten years, and if spending isn’t ‘sequestered’ today, it will be heavily pruned over the coming years.

With so many jobs and state services heading for attrition, it pays to know where the cutbacks could hurt the least. The Pew Center on the States has gauged these vulnerabilities state-by-state, and Savvy Families has incorporated them into our free Where-To-Live reports.

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1 comment to Facing federal budget cuts – your state’s resilience

  • David Stookey

    Jim Tankersley in The Washington Post says today: “The sequester has punctured the Washington-area economy like a party balloon. [No other area has] relied as much on a single source for jobs and growth as the Washington region does on federal government spending today…This is the economic vulnerability exposed by the budget cuts brought on by sequestration. A decade of expanding federal largesse has shielded the metro area from the worst effects of the financial crisis and the slow recovery. It also left the region, in investment terms, with a precariously unbalanced portfolio — heavily concentrated in a single stock, which is now falling.”

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