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64K Virginians lose pay during shutdown, state loses taxes

January 17, 2019

RICHMOND, Va. (AP) — Virginia’s secretary of finance says the partial government shutdown has cut off pay for more than 64,000 state residents, and could squeeze benefits programs.

The Daily Press reports Aubrey Lane told the Senate Finance Committee on Wednesday that unpaid wages for those workers amount to $127 million a week, on which the state typically collects $7 million in payroll taxes. Half those workers are furloughed, while the other half are working without pay.

Virginia has covered the cost of benefits for furloughed workers, but it’s unclear whether they’ll receive back pay to reimburse the state.

Layne also said Virginia could lose the $100 million a month it uses to finance food stamps if the shutdown continues past February. Layne warned that cost may need to be factored into the General Assembly’s state budget plans.

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For AP’s complete coverage of the U.S. government shutdown: https://apnews.com/GovernmentShutdown

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Information from: Daily Press, http://www.dailypress.com/

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