Fed shutdown averted, but billions in cuts still pinch locally

Lawmakers and governors in many states are proposing drastic measures to address deficits.

With a federal government shutdown averted for at least a couple of weeks, you might want to turn a business writer’s eyes to proposed billions of dollars of budget cuts nationwide at the state level.

This story from February notes that states are facing a combined $125 billion deficit, which will affect some of the costliest arenas including education, health care and corrections.

Lawmakers and governors in many states are proposing drastic measures to address deficits caused by a variety of economy-related revenue shortfalls, from less federal government stimulus funding to disappointing property, income and sales tax revenues.  And while some of the cuts will directly affect those who work directly for the state, you likely can glean small business, industry and financial stories from the effects of the cuts on businesses that provide goods and services to state agencies.

This recent report “An Update on State Budget Cuts” from the Washington, D.C.-based Center for Budget and Policy Priorities includes exhaustive state-by-state lists of programs that are affected at state agencies, universities and other levels of government.  You can peruse the report for ideas of which business sectors and entities to pursue for reaction.  Maryland, for example, is cutting “professional development for principals and educators, as well as health clinics, gifted and talented summer centers, and math and science initiatives,” the report says – and that’s just in the education arena.

Slowdowns in major projects will affect smaller vendors, contractors.

What do those cuts bode for consulting and training firms that provide the professional enrichment courses?  For the contractors that operate gifted and talented summer programs? You can parse these budget proposals and brainstorm ways to illustrate the potential local effects by finding the current contractors.

I’m no public government reporting expert; it would seem logical to start with the agencies of interest and ask how you might obtain a list of contractors. Failing that, delve around your state’s purchasing or procurement site; some, like this “Doing Business with Florida” channel, and the related MyFloridaMarketplace site, offer a trove of information aimed at vendors and small businesses including bidding opportunities and vendor training.  By following these avenues you can find contractors and suppliers to any agency that relates to your beat.  Straightforward reaction stories to state budget proposals – with as many nitty-gritty economic impact examples as the companies will provide – are a start.  Later, perhaps you can take a sample  contract or two and break down the state spending on a given good or service to show how it generates revenue and wages for business.

Group purchasing organziations (GPOs), buying cooperatives and associations at the state and municipal level are another place to start, as well as large entities like the nationwide USCommunities.org and sector-specific groups like the Health Industry Group Purchasing Association.

And the National Association of State Procurement Officials may be a source of information on trends or contracting logistics.