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Thursday, October 17, 2013
The federal government shutdown resulted in about 338 state employees being furloughed or having their work hours reduced, a state official told a General Assembly committee Thursday.
The broader impact of the 16-day shutdown on Virginia's economy and tax revenue remained unclear in a report presented to the Senate Finance Committee on state tax revenue collections.
The federal budget showdown is expected to have hit Virginia hard because the state has so many jobs dependent on federal contracts and spending. One recent report by George Mason University estimated the shutdown would result in $200 million in lost wages each day in the Washington metro area.
State agencies primarily affected by the furloughs were the Department of Labor and Industry, the Department of Military Affairs, Norfolk State University and Virginia Tech, Virginia Secretary of Finance Richard "Ric" Brown told the committee.
State general fund revenue collections rose 2.6 percent in September compared with the same month last year, and year-to-date collections rose 3.5 percent through September, Brown said. That revenue growth is ahead of the 1.4 percent forecast.
The federal shutdown could have a negative effect on retail sales, and thus sales tax collections, Brown said. Sales tax collections were already down about 0.4 percent in Virginia through September.
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