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Shut down a $15M daily hit on Md. economy, state estimate finds

Gov. Martin O'Malley shakes hands with President Obama in Prince George's County on Thursday. (Getty Images)

Maryland's economy would take a $15 million hit each day of a federal government shut down -- and the state would lose $5 million a day in revenue -- according to a memo drafted by Gov. Martin O'Malley's administration.

Because of the high concentration of federal workers in Maryland, state budget officials project a two-week furlough period would amount to $51 million in lost income and sales tax revenue. Those estimates generally assume federal workers would not be paid retroactively as they have been after past shutdowns.

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"The state income tax impact would be mitigated if federal workers receive retroactive pay after the shutdown ends; however, it is unlikely that most of the sales tax receipts would be recaptured," the memo states.

Lawmakers in Congress must pass a stop-gap spending bill by Monday night to avoid shutting down the federal government when it begins the new fiscal year on Tuesday -- but the effort to do so has been complicated by a debate over the 2010 Affordable Care Act.

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House Republican leaders have floated the idea of a temporary spending bill that would avoid the immediate deadline and instead kick the health care debate into mid-October, when Congress must negotiate to raise the nation's $16.7 trillion debt ceiling.

Meanwhile, the Senate is expected to vote this weekend on a bill that would keep the government running without stripping money for Obamacare.

Maryland is home to 300,000 federal workers.

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