WAMU 88.5 : News

Filed Under:

Federal Default Would Hit The District Especially Hard

Play associated audio
Federal employees, like many of the ones that attend lunchtime concerts at the Woodrow Wilson Plaza, are worried that a government default will result in furloughs.
Elvert Barnes (http://www.flickr.com/photos/perspective/5965152223/)
Federal employees, like many of the ones that attend lunchtime concerts at the Woodrow Wilson Plaza, are worried that a government default will result in furloughs.

"With its outdoor concert series, the Woodrow Wilson Plaza has become a popular spot for federal workers and contractors to gather on their lunch breaks.

But even with a Lynyrd Skynyrd cover band cranking out tunes, the mood for many on Wednesday was anything but rockin'. Eleanor Graham, who works for a federal government contractor, isn't optimistic.

"We just had a staff meeting this morning, and people want to know we should prepare ourselves to go on furlough," she says. "What kind of plans have they made for us... because no one is going to receive a salary if they don't come together."

Less than a block away from the plaza, in the bowels of the Wilson Building, D.C.'s Chief Financial Officer Natwar Gandhi painted a bleak picture for the District if the US government defaults.

"It would have immense effect on the financial market," he says. "First, we receive $2 billion a year from the federal government: that would be Medicaid, grants, the road projects -- that would be affected."

Also, Gandhi says the city's commercial real estate market -- considered the hottest in the country -- would take a hit from the higher interest rates.

"Commercial real property taxes are engines of our revenue machines, and that would be affected," he says.

Finally, D.C.'s ability to borrow short-term cash from Wall Street would be in serious jeopardy," Gandhi adds.

All told, a default would create a serious cash-flow problem for the District, and possibly bring about the District's return to being run by a federally-appointed Control Board, warns the District's CFO.

"Because all of the conditions that trigger the Control Board are so-called cash conditions," he says. "If we fail to meet our Metro payments, if we fail to meet our payroll, all of that would be hampered."

A shift to control board authority could mean lawmakers on Capitol Hill -- the source of the debt-ceiling standoff -- would take control of the District government as well.


A Glimpse Of Listeners' #NPRpoetry — From The Punny To The Profound

It was a simple idea: Would you, our listeners, tweet us poems for National Poetry Month? Your response contained multitudes — haiku, lyrics, even one 8-year-old's ode to her dad's bald spot.

When It Came To Food, Neanderthals Weren't Exactly Picky Eaters

During the Ice Age, it seems Neanderthals tended to chow down on whatever was most readily available. Early humans, on the other hand, maintained a consistent diet regardless of environmental changes.

10 Years After Immigration Protests, What Has Changed?

Jose Antonio Vargas of Define American, Fermin Vasquez of the SEIU and Jessica Vaughan of the Center for Immigration Studies discuss the legacy of 10 years of activism for immigration reform.

'The Guardian' Launches New Series Examining Online Abuse

A video was released this week where female sports journalists were read abusive online comments to their face. It's an issue that reaches far beyond that group, and The Guardian is taking it on in a series called "The Web We Want." NPR's Audie Cornish speaks with series editor Becky Gardiner and writer Nesrine Malik, who receives a lot of online abuse.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.