(SitNews) Ketchikan, Alaska - The personal finance social network WalletHub just released a new report examining which states stand to be hit the hardest by the government's funding debacle. According to the new report, Alaska was listed as one of the most affected states based on the number of federal workers per capita. Alaska was also listed among the states disproportionately affected by the shutdown’s immediate impact.

With a ranking of 1 being the most affected, Alaska was ranked 2 in the overall most affected states by the government shutdown, or what is also being called "slimdown".

Most & Least Affected States - Overall (1 = Most Affected by Shutdown)

Click on the graphic for a larger view...
Graphic courtesy www.hubwallet.com

The new report took into account not only which states have the highest concentration of federal employees and the most significant federal contracts, but also the areas in which there are large populations of people who have lost or are at risk of losing key funding from federal entities, such as students, small business owners, senior citizens, and veterans.

Ironically enough, WalletHub concluded that states won by the Republican Party in the 2012 presidential election could be hit disproportionately harder by a prolonged government shutdown, as 15 such Red States ranked in the top 25 in the study’s overall “at-risk” rankings.

According to WalletHub, it is interesting to note that even this study was affected by the government shutdown, as key federal data sources – including the Census Bureau and the Small Business Administration – have been disrupted due to a lack of manpower. WalletHub was nevertheless able to garner enough information from other public data sources to analyze each state and the District of Columbia in terms of the following seven metrics:

1. States with the Most Federal Employees Per Capita

Provides a sense of where the largest population segments are currently out of work due to the shutdown. This metric was given full weight in the study because the effects are already being realized.

2. States with the Most Federal Contracting Dollars Per Capita

Illustrates which areas of the country rely most heavily on federal contracting work, much of which has also been put on stand-by due to the shutdown.

3. States Most Affected by Disruption of Small Business Admin (SBA) Loans

Identifies which areas of the country tend to be most reliant on loans from the U.S. Small Business Administration – applications for which cannot be processed during the shutdown.

4. Real Estate as Percentage of GSP

Gauges where real estate is most important to the local economy and therefore which areas of the country stand to suffer most due to FHA staffing shortages and the inability of lenders to verify applicants’ income via tax returns and thus proceed to loan closings.

5. Social Security Payments Per Capita

Illustrates where a disruption to Social Security payments – which President Obama says will occur without an increase to the debt ceiling – will be felt most acutely.

6. Student Aid Applications Per Capita

While Pell Grants and federal direct student loans for the 2013-14 school year will not be affected by the government shutdown, drastically reduced staff and concerns about the debt ceiling stand to cause long waits for FAFSA application processing as well as funding issues in the future. In addition, government-sponsored initiatives such as Race to the Top, Investing in Innovation, and Promise Neighborhoods are due to run out of money on Dec. 31.

7. States with the Most Veterans Per Capita

The Department of Veterans Affairs only has enough money to cover disability and pension claims as well as educational and rehabilitation benefits through October. This metric identifies the areas that will be hit hardest as a result of dwindling funds.

Main Findings (1 = most affected))

• DC, Maryland, Alaska (3), Hawaii, and Virginia have the most federal workers per capita and are thus disproportionately affected by the shutdown’s immediate impact.
• DC, Virginia, Alaska (3), New Mexico, and Maryland receive the most federal contract money per capita, which means folks in those areas stand to lose out even if they don’t technically work for the federal government.
• Alaska (1), Virginia, Montana, Wyoming, and Maine have the most veterans per capita and would therefore suffer most from a lack of VA funding, which could result from a drawn out shutdown.
• Small business owners from the Dakotas, Colorado, Alaska (3), and Michigan who are looking for funding are hurt most by an inability to garner SBA loans, as those states have displayed the highest small business borrowing rates in recent years.
• Officials in West Virginia, Maine, Arkansas, Alabama, and Vermont should be particularly concerned about a prolonged shutdown, as their states have the most senior citizens per capita.
• Delayed mortgage closing will have the largest impact on Hawaii, Florida, Arizona, Maryland, and Louisiana – the five states in which real estate accounts for the greatest portion of gross product.
• Disruptions to federal student aid programs would be especially harmful to Georgia, Mississippi, Arkansas, South Carolina, and Louisiana, as those states boasted the greatest number of FAFSA applications per capita during the third quarter of 2013.

States with the Most Federal Employees Per Capita &
States with the Most Federal Contracting Dollars Per Capita

Click on the Graphic for a larger view...
Graphic courtesy www.hubwallet.com

States Most Affected by Disruption of Small Business Admin. Loans

Click on the Graphic for a larger view..
Graphic courtesy www.hubwallet.com

States with the Most Veterans Per Capita

Click on the Graphic for a larger view..
Graphic courtesy www.hubwallet.com

Edited by Mary Kauffman, SitNews

On the Web:

Data Tables & Graphs - WalletHub’s full rankings, along with other main findings from the Shutdown Report and commentary from Odysseas Papadimitriou, CEO of the personal finance websites WalletHub and CardHub. The report’s methodology can also be found here.

Related Article:

Ask The Experts: What The Government Shutdown Means For Your Wallet
http://wallethub.com/blog/how-will-the-government-shutdown-affect-my-wallet/1093/

Source of News: 

Wallethub
www.wallethub.com

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