CHART: How The Fiscal Cliff Could Slam Each Of The 50 States

cliff sunrise

Photo: Takver at

Pew centre on the States just released a report which breaks down the impact of the fiscal cliff’s sequestration cuts on each state.Because federal grant dollars go into a variety of programs, states that receive funding for defence spending are likely to be the most adversely affected if the economy goes off the cliff. For instance, Pew’s report highlights that this spending “makes up almost 15 per cent of Hawaii’s GDP, compared with just 1 per cent of state GDP in Oregon.”

While the CBO projects that the fiscal cliff would provide an economic headwind of about 0.5 per cent of GDP in 2013, the group sees the need to stabilise the U.S. debt picture. Pew, citing the CBO, reports that failure to address the debt “would result in lower economic growth due to higher interest rates, more borrowing from foreign countries, and less domestic investment.”

Pew admits that “the detailed impacts [of the fiscal cliff] on states are unclear” without guidance on how spending cuts would be implemented. Nonetheless, they’ve compiled this useful chart to show how much each state stands to lose through sequestration cuts:

pew state by state fiscal cliff breakdown

Photo: Pew centre on the States

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