Super Committee failures spell bad news for state governments

Some say the Congressional “Super Committee” was doomed from the start.

The committee made up of six Republicans and six Democrats, made headlines last week when it failed to reach agreement on spending cuts– triggering $1.2 billion automatic budget cuts in 2013.

Now, Republicans are blaming Democrats and vice versa, but Los Angeles Times columnist Doyle McManus points out that the whole idea was a bad one from the start.

In retrospect, it should have been apparent from the start that an ad hoc committee of six Republicans and six Democrats, working in secret against a short deadline, probably wasn’t the right place to make massive changes in tax and healthcare law. There was just too much distance between them.

If the automatic cuts, which are split among defense and domestic spending, do go into effect, they would be bad news for state governments who rely on federal dollars, as is pointed out in the cool graphic above, created by the Stateline.org team.

According to Stateline, federal government spending made up 3.3% of the U.S. economy in in 2003, but some states rely heavily on the dollars.

Perhaps nowhere more than the beltway, where budget cuts could mean massive layoffs.

Federal procurement dollars and salaries represented more than 40% of D.C.’s economic activity in 2010, 18.5% of Virginia’s and 13.5% of Maryland’s, according to Stateline.org.

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