Federal government shutdown hits NC agencies

As the federal government shutdown continues for the third day, implications for North Carolina came into sharper focus as state and federal agencies furloughed thousands of workers, suspended services and braced for more impacts.

The shutdown went into effect Tuesday after Republicans in the U.S. House of Representatives tried to use the budget battle as leverage to force a delay in implementing the Affordable Care Act, a move rejected by President Barack Obama and the Senate.

Fayetteville absorbed one of the heaviest blows in the state as Fort Bragg leaders told about half of its 14,500 civilian employees to stay home and suspend or scale back training, survivor outreach and other services.

“Everyone will be affected by this furlough,” Col. Jeffrey Sanborn, the Army base’s garrison commander, said in a statement.

The shutdown hit state agencies as well. The N.C. Department of Health and Human Services put 337 federally funded employees on leave and said an additional 4,500 employees could be furloughed or see their hours cut back as the full impact of the shutdown is assessed in coming days.

Department leaders also warned that many services would soon run out of money, including a program that provides supplemental food, health care referrals and nutrition education for nearly 264,000 N.C. women, infants and young children each month.

The state Department of Transportation was still evaluating on Wednesday whether the shutdown would affect highway, bike and pedestrian projects, said spokesman Mike Charbonneau.

Twenty-two employees involved in securing grant funding for public transit were sent home Tuesday.

“We are anxiously watching and waiting and hoping that the federal shutdown will end so they can come back as soon as possible,” Charbonneau said.

State tourism officials spent Wednesday reassuring travelers that despite closures of national parks and facilities, destinations such as the Blue Ridge Parkway remain open.

“It’s a frustration for folks in the mountains because this season is critical for them,” said N.C. Division of Tourism spokeswoman Margo Metzger.

Economists said broad impacts could be avoided if Congress moves quickly to end the stalemate.

Still, James Kleckley, director of East Carolina University’s Bureau of Business Research, said the outcome will depend on whether lawmakers broker a solution to restore confidence among businesses and investors.

“The dysfunction in Washington that we’ve seen for the last number of years has created so much uncertainty,” he said. “That’s one of the things keeping the nation’s economy from growing any faster.”

The shutdown even affected some UNC students.

David Culclasure, a senior who works part time at the Guilford Courthouse National Military Park in Greensboro, said he received a furlough notice on Tuesday.

While the park is his sole source of income, he said he is not reliant on it and is instead concerned with how other federal employees might fare.

“What does worry me is the other 800,000 federal employees that were sent home that might have families,” he said. “That is their career.”

Michael Walden, an N.C. State University economics professor, said the shutdown could slow economic growth if it stretches on.

“My gut tells me this is something that’s not going to drag on because as it does drag on, the costs become more apparent.”

state@dailytarheel.com