Wisconsin would be able to weather a federal default – at least over the short term. The state would be okay for about three months. At the request of Governor Scott Walker, Department of Administration Secretary Mike Huebsch asked for default impacts from state agencies. “I asked them to report back to me this past Friday, the impact that a possible default by the federal government would have in their particular agencies,” Huebsch told a media conference call Monday. “As you can imagine, those that deal with a lot of federal money are going to be the most directly and immediately impacted.”
Programs such as Medicaid, child care programs, and low-income heating assistance rely on federal funding and could be impacted if the federal government goes into default and if the issue is not resolved. “In the short term, I think we’re going to be fine,” said Huebsch. “We certainly have the money and the authority to be able to continue most of these programs. But that clock will begin to tick rather quickly.” Huebsch said a related question is what impact a federal default would have on the larger economy, including the economic recovery underway in Wisconsin.