What Would Happen If State Governments Shut Down

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If lawmakers cannot address massive spending issues, then governors might shut down state operations. Many states are suffering from dismal financial conditions. Governors and lawmakers have been stuck between a rock and a hard place, not wanting to make unappealing cuts in education, health, and social services, but also not wanting to raise taxes.

The idea is that by threatening a shutdown, lawmakers will be forced to kick start negotiations or motivate the creation of a new fiscal plan. While officials have been dealing with a $9 billion deficit, New York has been operating without a budget.

If a closure does indeed happen, the ramifications will be felt all around. State employees are the first to go. When the state hits a financial impasse, employees are asked to stay home. State departments would shut down, while a budget is being negotiated. That would mean that the department of motor vehicles would stop operating, unemployment offices would close, and road repair operations would halt. Local businesses would also be unable to attain licenses, and park programs would shut down.

In 2006, the New Jersey Government shutdown operation for eight days while a budget agreement was being reached. About 45,000 employees were sent home without pay. The shutdown even required that Atlantic City casinos be shut down for the first time in its history, because inspectors were unable to work. In recent years Michigan, Pennsylvania, and Minnesota suffered partial government shutdowns. In 2007, the governor of Michigan had traffic cameras turned off, state parks emptied, and highway rest stops barricaded for four hours in order to force officials to come up with a budget. In total, 35,000 of the state's 53,000 workers were laid off for the four hours.

In 2002, Tennessee shutdown state operations for three days. The state closure resulted in the suspension of classes at all state universities, among other things. The state closures did not affect public health services, child support, prisons, and highway patrols.

The good news is that most state closures only take a few days. States that could be affected by closures include: New York, New Jersey, Kentucky and Minnesota. It is important to note that the closures are used as a tactic to motivate the construction of a state budget.