State Preparing for Federal Default

7/16/11 – Wisconsin Governor Scott Walker says he would rather plan for the possibility that Washington fails to raise the federal debt limit, than to be caught the day after the August 2nd deadline trying to figure out what to do. Walker says he has ordered Administration Secretary Mike Heubsch to conduct a review to find out which state services would be impacted by a federal default. Cabinet secretaries, in turn, have been told to report back within a week on how that would affect their departments. Huebsch says a total shutdown is unlikely, but it is possible the feds might only pay a portion of their obligations if the deadline passes next month with no action.