Brain Top Off!

The looming issue in Washington D.C. has been a potential government shutdown. If Congress cannot agree on a spending budget proposal, the government will have to temporarily close. Winning ideological points is all well and good, but there are real individuals who are likely to really suffer for a government shutdown who aren’t elected officials. Essential services like law enforcement and the military won’t be impacted. However, government employees can be the ones who bear the brunt.

Shutdown may not stop every little thing

The federal government may end up in a temporary shutdown on May 16 because of the battle over a spending bill. Even with a shutdown, not every little thing will shut down. Some things will continue. The United States Postal service will continue to operate, as that service is mostly self financed. According to MSNBC, any government service “involving the safety of human life or the protection of property” cannot legally be stopped in a government budget showdown. Social Security would also likely be exempt also.

Bad for workers in the government

This government shutdown is bad for government employees. They lose the most on it. It will even not impact the military or air traffic controllers. Nobody has to worry about safety. However, employees in agencies that are involved in clerical, managerial or financial roles will most likely be put on a furlough. Still, there was pay frozen for many employees already. The Obama administration put these pay freezes in place. Contractors who work for the government, many of whom are small businesses, will also lose revenue, according to the Wall Street Journal. There may not be any money reimbursed to contract workers.

Keeping up a plan

In case there was a government shutdown, some contingency plans were already in place. According to Credit Union Times, the Cabrillo Credit Union in San Diego will offer zero percent interest furlough loans to its members who are temporarily laid off by a federal government shutdown. That organization offered similar assistance in the 1995 – 1996 shutdowns, and government employees should check with their local credit union to see if there are comparable programs available if they are members. Reuters states that Treasury Secretary Timothy Geithner said he might end up going into the Social Security Trust fund and other sources to help with the shutdown giving funding to employees if there’s a shutdown.

Information from

Wall Street Journal

online.wsj.com/article/SB10001424052748704587004576241033511757282.html?mod=googlenews_wsj

Reuters

reuters.com/article/2011/04/04/us-usa-budget-debt-idUSTRE7335BY20110404?pageNumber=1

MSNBC

msnbc.msn.com/id/42380178/ns/politics/

Credit Union Times

cutimes.com/2011/04/04/cabrillo-offers-0-interest-government-shutdown-loa

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