Saturday, January 20, 2018

Government Shutdowns

"Shut it down. Shut it down NOW!"
--Telco Supervisor (Die Hard)

With a 'government shutdown' seemingly pending, let's review some process and history. As discussed here, routine activities of most federal agencies are funded prior to the start of each fiscal year (October 1) by one or more regular appropriations acts. These are acts of Congress.

When a regular appropriations act is delayed, then a continuing resolution (CR) can be passed by Congress to provide interim budgetary funding.

The Antideficiency Act prohibits expenditure of federal funds in the absence of appropriations except for government activities involving "the safety of human life or the protection of property." Because this language can be broadly interpreted, a practical implication of this exception is that a large portion of government remains in operation regardless of whether a CR is in place or not.

When a regular appropriation or CR is not in place, then a 'funding gap' occurs. A funding gap may occur at the start of a fiscal year or anytime a CR expires without a replacement. When a funding gap occurs, federal agencies begin to shutdown non-excepted activities and furlough non-excepted personnel. Because it has been customary to retroactively pay furloughed personnel for time missed once the 'shutdown' has ended, these temporary layoffs amount to paid vacations.

Since 1977, there have been 18 funding gaps. The most recent of these occurred under the Obama administration in Fall of 2013 and lasted 16 days. The stated concern at the time was raising the debt ceiling, something that, ironically, Barack Obama had been on the record as previously opposing. Sadly, the John Boehner-led GOP ultimately caved.


The 2013 event constituted the first 'government shutdown' since December of 1995, when the last of the previous 17 funding gaps was closed.

As in 2013, both Democrats and Republicans are pointing fingers accusing each other as being responsible for 'shutting down the government'--as if shuttering government was bad.

I long for the day when we witness the opposite. When both parties trip over themselves to take credit for shrinking the size of government and transferring another increment of power from the State into the hands of the people.

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