The Kent County Department of Social Services at 350 High St., Chestertown

The shutdown of the federal government is into its fourth week as of this writing, with some 800,000 either furloughed or working without pay. Departments and agencies wholly or partially closed include Agriculture, State, Treasury, Commerce, Housing and Urban Development, Interior, Justice and Homeland Security, the Internal Revenue Service and the Environmental Agency.

Maryland ranks third in the nation – behind Washington D.C. and Arizona – in the percentage of federal employees in its population. While many of those are in the suburbs around Washington, according to the 2015 federal Census there are more than 16,000 in the First Congressional District, which includes the whole Eastern Shore. That is more than in some whole states. There is no easy way to find out how many of those live or work in Kent County, though the number is probably fairly small compared to, for example, Harford or Baltimore counties.

But the federal employees are just the tip of the shutdown iceberg. The shutdown affects state and local governments that depend on federal funding, contractors or vendors who deal with the federal government, and businesses that serve government employees or contractors – such as restaurants, grocery stores, and anyone else whose bottom line is suddenly affected by the fact that 800,000+ people suddenly are short of – or out of — spending cash. And, of course, the families of all the above.

So, how has the shutdown affected Chestertown and Kent County? To get a sense of the answer, the Chestertown Spy asked several local officials what effects they are feeling.

Shelly Neal-Edwards, Director of the Kent County Department of Social Services, is one of those on the firing line of providing assistance to those who are out of work or otherwise in tightened financial circumstances. In particular, her office administers the federal SNAP (Supplemental Nutritional Assistance Program) for the Maryland Department of Human Services. The program, known in Maryland as the Food Supplement Program, supplies more than 650,000 Maryland residents with a total of more than $75 million each month to purchase groceries. The program is funded by the U.S. Department of Agriculture, one of the federal agencies closed by the shutdown.

A press release from the Department of Human Services, dated Jan. 11, announced that SNAP benefits will continue to be funded through the month of February.

The press release states, “The [USDA] has directed Maryland and other states to issue February benefits earlier than usual. As a result, FSP recipients will get both their January and February benefits on or before January 20. […]

“As funding for has not been appropriated by the federal government beyond February, it is critical to understand the potential hardship that a prolonged federal shutdown could impose upon those in need. As state leaders continue to call for an end to the federal shutdown, the Maryland Department of Human Services stands ready to assist FSP recipients at this uncertain time.[…]”

Also, a letter was sent to all SNAP recipients in the state, informing them of the February payment and asking them to contact their local DSS office if they need additional help in locating resources available in their communities. The letter provides contact information for the local offices, along with the Department of Human Services’ website, Facebook page, and Twitter address.

Edwards said in an email Jan. 17, “ for the month of December 2018, I can tell you that Kent County DSS served 2,582 SNAP/FSP customers. Between July and December of 2018, our Department received an average of 85 FSP applications per month. We have not seen an increase in the number of FSP recipients that we serve here in Kent County, as the number of SNAP recipients in our county has decreased over the past year.”

Shelley Heller, the County Administrator of Kent County, said the main effect on county government, to date, is the inability to get federal officials’ signatures on invoices to pay local vendors when the funds involved come from a federal grant or loan. While the effect so far has been minor, she said it could become significant if the shutdown goes on a great deal longer. Many of the federal grants go through the state of Maryland, so the federal shutdown won’t have an impact until the state needs to get additional funds from the state, Heller said.

As examples, Heller mentioned funding from the Department of Housing and Community development, which applies to community legacy grants in the towns. Also, rural water and sewer systems depend on rural development funding from the U.S. Department of Agriculture, one of the federal agencies closed by the shutdown. Also, she said, Delmarva Community Transit, the major public transportation supplier on the Eastern Shore, relies on federal funding for its operation. As of this writing, Delmarva Community Transit had not replied to a query about the impact of the shutdown on its operation.

Bill Ingersoll, Chestertown Town Manager, said the town is not heavily reliant on federal funding for most of its projects. The renovations on the town-owned marina, funded in part by USDA grants, are mostly completed, he said. “We have very little direct contact with the federal government except to send in checks,” he said. However, he said, there could be an impact if the shutdown goes on longer. Still, “It won’t affect Chestertown until it hits the state,” he said. At that point, some projects funded by federal grants may be put on hold until the officials responsible for authorizing payments are able to return to work.

In some cases, local residents receive payments directly from the federal government. This includes farmers, many of whom were expecting to receive money under the US Department of Agriculture’s “market facilitation program.” The program was created to compensate farmers in part for sales lost on account of newly enacted tariffs – notably the Chinese soybean tariff that has effectively closed what was one of the most lucrative markets for Eastern Shore farmers. Other programs included in the farm bill recently passed by Congress aren’t being implemented since the shutdown began on Dec. 21, leaving farmers without access to federal loans and other funds needed to get ready for the next planting season.

Summing up, the shutdown’s effect on the local community is small but real though definitely less at this point than it is likely to be if the shutdown continues much past the end of the month, let alone if it goes past February, when SNAP funding may disappear. There may soon be some difficulties in paying local vendors and problems relating to agriculture loans and programs.  The shutdown is beginning to be felt in Kent County.

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