Government Shutdown Costs MD $778M In Wages, Tax Help For Workers

Maryland workers affected by the government shutdown have lost $778M in wages so far; state comptroller offers tax help for those affected.

ANNAPOLIS, MD — Maryland workers affected by the government shutdown have lost $778 million in wages as the partial federal closure stretches into its fourth week, and the state comptroller has offered tax help for those affected by the stalemate. Between 230,000 and 245,000 Marylanders are federal employees; since some agencies are funded through other budget appropriations, about 90,000 Marylanders are either furloughed or working without pay, according to a state report. Comptroller Peter Franchot on Wednesday announced a plan to provide financial relief to impacted federal workers unsure when their next paycheck will arrive.

A report released Jan. 14 by the state’s Bureau of Revenue Estimates said that about 172,000 Marylanders are affected by the government shutdown, which began on Dec. 22. Each bi-weekly payroll missed totals $778 million in lost wages, which translates to roughly $57.5 million less in state and local income tax withholding, and $2.1 million less in sales tax collections.

“These estimates demonstrate what we already knew — the unnecessary shutdown of our federal government is having a devastating effect on Maryland’s families and our state’s economic well-being,” Franchot said in a news release. “Even if some employees do eventually get repaid, our economy will not be made whole and changes to long-term spending habits may cause further harm.”

Federal contractors, furloughed employees, and those working without pay currently on payment plans with the state of Maryland may be granted reduced or even suspended payments while the shutdown continues, Franchot's office said Jan. 15.

“The longer this government shutdown lasts, the more financial hardship it is causing federal workers, some of whom may never get repaid,” said Franchot in a news release. “My agency recognizes that Marylanders affected by this prolonged impasse face a greater burden to make ends meet and to fulfill their tax obligations.”

The Comptroller’s Office will help federal workers with personal income liabilities and other outstanding tax obligations. As specific circumstances vary, each request will be handled on a case-by-case basis.

Affected federal workers, including federal contractors and federal employees working without pay, who may have outstanding Maryland tax obligations, should contact the Comptroller of Maryland’s Ombudsman’s Office via email at ombudsman@comp.state.md.us or call 410-260-4020.

To assist taxpayers, an email address (govshutdownrelief@comp.state.md.us) has been created to receive specific shutdown-related inquiries.

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