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Failure to raise the debt ceiling will cost Florida $2.34 billion!!!


The effects of not raising the August 2, debt ceiling will be felted immediately, forcing the State of Florida to cut 40 percent from its budget and the damage will be swift and enormous, plunging the State of Florida’s economy into an even greater recession.

Some of the programs that will be affected immediately are: health care services, employment and training programs, programs to provide bulletproof vests to local law enforcement, emergency fire services for rural communities, hazardous waste removal and wildlife conservation to name a few.

Services that rely on the federal government for between 25 percent and 50 percent of their revenue may find themselves on the chopping block.

No one knows which state programs would be cut, but the Bipartisan Policy Center, or BPC, has outlined two scenarios for how the Treasury Department might prioritize payments for certain programs over others if the debt ceiling isn’t raised.

In the first, Treasury prioritizes payments on big-ticket items such as Social Security, Medicare, Medicaid, and defense. In the second, Treasury still protects Social Security, Medicare, and Medicaid, but swaps out defense for important safety net programs such as food stamps and special education grants.

Under either scenario the State of Florida still stands to lose big. Assuming the debt ceiling remains frozen throughout August and September; individual states could lose up to $56 billion in funding just in those two months under the first scenario and $36 billion under the second.

Unfortunately, no state will be spared by cuts. Hundreds of millions of dollars will be lost in federal funding if the debt limit isn’t increased regardless of how Treasury decided to prioritize payments.

And with only 9 days left to resolve the debt ceiling crisis, “The White House and Congress is still meeting to agree or disagree that it’s time to put the life vest on because the ship is tilting and starting to take on water!”

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July 25, 2011 - Posted by | Business News | , , , , , , , ,

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