Obama’s Government Shutdown
A government shutdown occurs when a government discontinues providing services that are not considered “essential.” Typically, essential services include police, fire fighting, armed forces, utilities and corrections. Interestingly, Congress and the President are exempt from the furlough and continue to receive compensation despite the fact that other services are suspended.
- Medicare: Some 400,000 newly eligible Medicare recipients were delayed in applying for the program.
- Social Security: Claims from 112,000 new Social Security applicants were not processed. 212,000 new or replacement Social Security cards were not issued. 360,000 office visits were denied. 800,000 toll-free calls for information were not answered.
- Healthcare: New patients were not accepted into clinical research at the National Institutes of Health (NIH) clinical center. The Centers for Disease Control and Prevention ceased disease surveillance and hotline calls to NIH concerning diseases were not answered.
- Environment: Toxic waste clean-up work at 609 sites stopped as 2,400 Superfund workers were sent home.
- Law Enforcement and Public Safety: Delays occurred in the processing of alcohol, tobacco, firearms, and explosives applications by the Bureau of Alcohol, Tobacco, and Firearms; work on more than 3,500 bankruptcy cases reportedly was suspended; cancellation of the recruitment and testing of federal law enforcement officials reportedly occurred, including the hiring of 400 border patrol agents; and delinquent child-support cases were delayed.
- US Veterans: Multiple veterans’ services were curtailed, ranging from health and welfare to finance and travel.
- Travel: 80,000 passport applications were delayed. 80,000 visas were delayed. The resulting postponement or cancellation of travel cost U.S. tourist industries and airlines millions of dollars.
- National Parks: 2 million visitors were turned away from the nation’s national parks resulting in the loss of millions in revenue.
- Government-backed Loans: FHA mortgage loans worth more than $800 million to more than 10,000 low-and-moderate-income working families were delayed.
The President’s Budget Proposal informs Congress of the White House’s vision for the three basic elements of U.S. fiscal policy: (1) how much money the government should spend on public needs and programs; (2) how much money the government should take in through taxes and other sources of revenue; and (3) how large a deficit or surplus will result — simply the difference between money spent and money taken in. Once Congress has passed all of the annual spending bills, the president must sign them into law, and there is no guarantee that will happen. Should the programs or funding levels approved by Congress vary too greatly from those set by the president in his or her Budget Proposal, the president could veto one or all of the spending bills. Vetoed spending bills slow the process greatly. Final approval of the spending bills by the president signals the end of the annual federal budget process.
The U.S. Constitution requires that all expenditures of federal funds be authorized by Congress with the approval of the President of the United States. The U.S. federal government and the federal budget process operate on a fiscal year cycle running from October 1 to midnight September 30. If Congress fails to pass all of the spending bills comprising the annual federal budget or “continuing resolutions” extending spending beyond the end of the fiscal year; or if the president fails to sign or vetoes any of the individual spending bills, certain non-essential functions of the government may be forced to cease due to a lack of congressionally-authorized funding. The result is a government shutdown.
According to Congress.org, “Under Article I, Section 6 of the Constitution, members of Congress ‘shall receive a compensation for their services, to be ascertained by law, and paid out of the treasury of the United States.'”
Since 1981, there have been five government shutdowns. Four of the last five government shutdowns went largely unnoticed by anybody but the federal employees affected. In the last one, however, the American people shared the pain.
- 1981: President Reagan vetoed a continuing resolution and 400,000 Federal employees were sent home at lunch and told not to come back. A few hours later, President Reagan signed a new version of the continuing resolution and the workers were back at work the next morning.
- 1984: With no approved budget, 500,000 federal workers were sent home. An emergency spending bill has them all back at work the next day.
- 1990: With no budget or continuing resolution, the government shuts down during the entire three-day Columbus Day weekend. Most workers were off anyway and an emergency spending bill signed by President Bush over the weekend has them back at work Tuesday morning.
- 1995-1996: Two government shutdowns beginning on November 14, 1995, idled different functions of the federal government for various lengths of time until April of 1996. The most serious government shutdowns in the nation’s history resulted from a budget impasse between Democratic President Clinton and the Republican-controlled Congress over funding for Medicare, education, the environment and public health.
The first of the two government shutdowns in 1995-1996 lasted only six days, from November 14 to November 20. Following the six-day shutdown, the Clinton administration released an estimate of what the six days of an idled federal government had cost.
- Lost Dollars: The six-day shutdown cost taxpayers about $800 million, including $400 million to furloughed federal employees who were paid, but did not report to work and another $400 million in lost revenue in the four days that the IRS enforcement divisions were closed.
Based on history, here is how a long-term government shutdown might impact some government-provided public services.
- Social Security: Benefit checks would probably keep coming, but no new applications would be accepted or processed.
- Income Tax: The IRS will probably stop processing paper tax returns and refunds.
- Border Patrol: Customs and Border Patrol functions will probably continue.
- Welfare: Again, the checks would probably continue, but new applications for Food Stamps might not be processed.
- Mail: The U.S. Postal Service supports itself, so mail deliveries would continue as usual.
- National Defense: All active duty members of all branches of all armed services would continue duty as usual, but might not get paid on time. More than half of the Defense Department’s 860,000+ civilian employees would also work, the others sent home.
- Justice System: Federal courts should remain open. Criminals will still be chased, caught, prosecuted and thrown in federal prisons, which would still be operating.
- Farms/USDA: Food safety inspections will probably continue, but rural development, and farm credit and loan programs will probably close down.
- Transportation: Air traffic control, TSA security personnel, and the Coast Guard will remain on the job. Applications for passports and visas may not be processed.
- National Parks/Tourism: Parks and forests will probably close and visitors told to leave. Visitor and interpretive centers will be closed. Non-volunteer rescue and fire control services might be shut down. National monuments and most historic sites will probably be closed. Parks police will probably continue their patrols.
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