Federal versus state government shutdown

KIMT News 3

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With the possibility of the federal government shutting down, it’s a reminder of what happened in Minnesota two years ago.

In July of 2011, the Minnesota state government shut down after Democratic Governor Mark Dayton and Republican lawmakers couldn’t agree on a new two-year budget.

Highway rest areas, the state lottery and state parks were among the many services that were closed for nearly three weeks.

While many similar issues could arise if the federal government shuts down, there’s one major difference between the two.

“There’s nobody to bail out the federal government if it defaults. If the state of Minnesota or the state of Iowa, anybody in the union as an individual state defaults, the federal government could foot some short term cash to help that community get that state back on its feet,” said Political Analyst Doctor Eric Shoars.

Another difference – if the federal government shuts down, it would impact *national agencies and services instead of state. For example,  national state parks and museums would be closed and applications for federal housing and student loans could see a backlog.

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