District of Columbia Is Well Positioned To Meet Its Obligations Despite Federal Government Shutdown

WASHINGTON D.C. (S&P Global Ratings) Jan. 11, 2019--As the partial U.S. federal government shutdown nears the end of its third week, S&P Global Ratings believes the District of Columbia (D.C.) is well positioned to absorb temporary disruptions resulting from federal workforce furloughs. Although federal workers comprise about one-third of the district's total employment, over the past 10 years, the share of government jobs as a percent of overall jobs has declined. Private-sector diversification helps insulate the District from the current shutdown. Furthermore, although a protracted shutdown could dampen income and sales tax trends (together making up nearly one-half of operating revenue), the District's financial flexibility reached a high at fiscal year-end 2017 with available reserves totaling 22% of operating expenditures

...WASHINGTON D.C. (S&P Global Ratings) Jan. 11, 2019--As the partial U.S. federal government shutdown nears the end of its third week, S&P Global Ratings believes the District of Columbia (D.C.) is well positioned to absorb temporary disruptions resulting from federal workforce furloughs. Although federal workers comprise about one-third of the district's total employment, over the past 10 years, the share of government jobs as a percent of overall jobs has declined. Private-sector diversification helps insulate the District from the current shutdown. Furthermore, although a protracted shutdown could dampen income and sales tax trends (together making up nearly one-half of operating revenue), the District's financial flexibility reached a high at fiscal year-end 2017 with available reserves totaling 22% of operating expenditures or $1.8 billion following seven consecutive years of operating surpluses. Coupled with very strong available reserves, we also believe that D.C. voters' ratification...

News