E-mail updates
Follow on Twitter
Subscribe to RSSAs the standoff in Congress continues over where and what to cut from federal spending for the rest of this fiscal year, the prospects for a government shutdown loom larger.
But the haggling over the budget could have a very expensive consequence: A shutdown costs the government money.
A lot of it.
The Office of Management and Budget estimated early in 1996 that the first of two government shutdowns – for six days in November 1995 – cost taxpayers an estimated $100 million per day. The final price tag for that closing and the record three-week shutdown later that year - including back pay to workers who did not go to work over that time: Over $1.25 billion.
Other shutdowns have been costly too. According to the Government Accountability Office, a funding gap of just three days in 1991 rang up a $607 million bill, including $363 million in lost revenue and fees.
If Congress fails to reach an agreement on a stopgap spending measure before the current funding law expires on March 4, the federal government could be headed for the 16th closure since Jimmy Carter’s presidency.
The costs of shutdown
The executive branch of the federal government currently employs just over two million civilians – about the same number as it did in the mid-1990s – and requires hundreds of millions of dollars per day to function.
But why does it cost so much to keep the lights off?
First of all, pay.
The Office of Management and Budget requires federal agencies to maintain a contingency plan in case of a “funding hiatus” – including information about how many employee are essential for “military, law enforcement, or direct provision of health care activities” or otherwise “to protect life and property.” That would include air traffic controllers, national security professionals, key medical workers, and law enforcers, among others. But, in the event of a shutdown, “non-essential” employees would be forced to stay home until the impasse gets resolved.
In the 1990s, the 800,000 employees who were furloughed in November and the 260,000 who sat idle in December received a total of about $1 billion in back pay even though they could not report to work, according to a report by the Office of Management and Budget.
(That was a relief to many employees, who were uncertain for weeks about whether or not they would ultimately be paid. Robert Tobias, who served as the president of the National Treasury Employees Union during the shutdown and now teaches at American University, said that his organization and other federal employee groups dispersed tens of thousands of dollars in loans to workers who were unable to pay their bills without receiving their paychecks on time.)
There’s also the issue of uncollected fines, fees, and other revenues.
The Environmental Protection Agency, for example, failed to collect $63 million in fines because of cancelled facility inspections during the November shutdown in 1995. Uncollected airline taxes and fees by users of government facilities like national parks also added up.
There are also major potential trickle-down effects for the nation’s economy.
Shortly after the three-week shutdown in 1995, the Interior Department concluded that the shuttering of national parks had cost related businesses and nearby local governments almost $300 million. A study conducted by the by National Parks and Conservation Association found that – even a year after the budget standoff – small businesses were still suffering from a lingering decline in tourism, especially by foreign visitors.
Contractors also suffered during the mid-1990s shutdowns. According to a survey conducted at the time by Signet Banking Corp., a third of federal contractors furloughed some of their own employees in January 1996. Many of those workers never received checks from their private-sector employers to make up for time lost.
Looming threat
It remains unclear whether or not a shutdown will occur, and the Obama administration has been mostly muted in its warnings about the economic effects of a potential budget stalemate after March 4.
"We don't want to do things that would jeopardize confidence in the (economic) recovery,” said Treasury Secretary Timothy Geithner at a breakfast sponsored by Bloomberg News on Wednesday. But he declined to comment further on the possible impact of a shutdown, saying of the congressional negotiators working on a stopgap bill, “I don’t want to complicate their challenge.”
Still, the potential political and commercial costs of the 1995-96 standoff are on the minds of the shutdown’s veterans and its students.
“What Republicans discovered was that, while people don’t pay much attention to the federal government, they notice a great deal when the services they need are not available,” said Tobias. “That’s why there was a huge backlash.”
Leave a Comment:
Wow, what a surprise. It costs just a much for the goverment to do nothing. I have an offer for the government. Stay home, do nothing and we'll pay you for it. You won't be missed.
Yeah, feisty, let's get "Botox Nancy" back for a second time, maybe we'll really hit bottom. Speaking of addictions, what is it that compels someone to look like a rubber ball from so much "work" on their face?? Not a healthy person, I'd venture.
Shut the government down for good sell of all the assets and give the money back to the people. I'm not getting what I paid for I want a refund.
Fine quit driving anywhere as you didn't pay for those roads.. Let's see how long you can keep employed walking through the backwoods since you shouldn't use any public roads for any transportation then. And we'll see how long your employer stays open when they can't drive their trucks on those public roads...
Typical republican.. wants everything for free!!
Roads Suck as it is. Put those inmates to work. The ones we pay 22,000 a year to keep. Get those level I-II inmates out and instead of ten guys standing around we can have ten inmates standing around. At least they can not get over time.
Jake, when you guys shut down the government, you have to let all the prisoners out of prison, fire all the cops and firefighters and national guard and armed forces, quit printing social security checks, quit paying medicare and medicaid. In other words, the country falls completley apart into chaos. that's what republicans seem to want.
They may suck, but they were paid for by tax dollars.. If you want them fixed then pay up you penny pinching loser!! Your yearly taxes aren't even enough to pave the road for 1/2 a mile!! So if you don't like them, send in more money or don't drive on them!!
Oh, and there's another typical "no thought to it republican idea!!!!"
Let's put the convicts out to pave the roads... and we should do this WITHOUT police (since those are funded by the government) and I'm sure they'll just do it out of the goodness of their hearts.. Oh, and they won't need machines to do it since those are bought with tax dollars.. and they can just generate tar out of think air since that's how it works in fairly land!!
And since they are repentant of all their crimes you should feel safe with them paving the roads in front of you house. I mean heck, they probably weren't that bad in the first place, right??
Wow, you are some kind of moron!!
Joe went through this already including IOU. Its BS. PS its state money that pays Correctional officers not federal. Maintain National Guard who are also trained to take over federal Pens if necessary. And level I inmates for your FYI are DUI usally.
And beaker BEFORE you call someone a Moran learn the diffrence between federal and state funding. Also Gasp Level I inmates ALREADY work out in the communitys.
Roads are paid for with your gas taxes and cops, firefighters are paid for at a local level...so I get to keep driving.
Joe Mota another libby bs artist, the people you are talking, talking aboput essential personnell.
Anothe bs libby comment.
Here it is libbies, the republicans were awarded the largest electoral victory in 70 years, last Nov.
What thet means libbies, is you were handed the worst a$$kicking in 70 years.
Attention deficit disorder is a terrible thing.
Yet here you are today talking the same absolute drivel you were talking the day before you got your fanny handed to you.
The republicans were awarde the largest electoral victory in 70 years, they campaigned on repealing the insurance farce, cutting spending and opposing anything the inept lying quasi socialist in the white house tries to do.
Now, we expect they will do, exactly that, we aren't interested in your bs about the cost of shutdown, if they is what they have to do to keep Karl Marx in the white House from spending money, that is what we expect them to do.
If they don't we will take them out again in 2012, and start over, and we will keep doing that until the republcians understand they can be conservative or be gone.
Any signs of a U.S. (and, by extension, world) recovery could be thrown off track in the next two to three months as Congress wrangles over raising the country's debt limit. In 1995 - 1996, a partisan Congress under Newt Gingerich refused to raise the debt ceiling which resulted in a shutdown of government and a massive impact on the United States economy.
Here is an examination of the issue showing just how frequently the debt ceiling has been raised in the past decade and how the entire situation has reached the point of absurdity under both Republicans and Democrats:
http://viableopposition.blogspot.com/2011/01/united-states-debt-ceilings-whats-point.html
Hello America, while you folks argue about the goverment, maybe I can shed some light on the Wisconsin Dilema, now lets see most Wisconsin School teachers earn about $90,000 dollars a year, now it takes 1 gallon of Milk to make 1 lb of cheese, and we can sell 1 lb of cheese for $5.oo and add tax of 0.50 cents for the State, to pay 1 teacher a yearly salary, we would have to sell 180,000 one pound packages of cheese, to produce that 180,000 packages of cheese would require 180,000 gallons of milk, now most happy cows can produce 1 gallon of milk a day of which the farmer gets $1.50, and it takes 1 bail of hay to feed that one cow, now for 365 days it would take about 495 cows, so we need 495 cows fed for a year to produce 180,000 gallons of milk = 180,000 lbs of cheese, now this requires 495 cows X 365 days X 1 bail hay for each cow = 180,000 bails of hay, no I'm trying to remember but I think you can get about 40 bails from 1 acre each crop, and maybe get 2 crops a year so maybe 80 bails of hay per acre, so 180,000 bails / 80 bails per acre = 2225 acres, now a Big Tractor can cultivate probably 100 acres in 5 days, and each day takes about 20 gallons of diesel fuel, so it takes 100 gallons of diesel fuel to plow 100 acres, (seems too high), it takes 2225 gallons of diesel fuel to cultivate 180,000 bails of hay, now it takes about 1 barrel of oil to produce 1 gallon of diesel fuel, so we would need 2225 barrels of oil, now each barrel costs $100.00 so it costs $222,500.00 dollars of foreign oil to produce the 180,000 lbs of cheese neccesary to pay the 1 school teacher $90,000 a year. I think the farmer is the one losing here, lets see famer gets $1.50 for 1 gallon of milk so $1.50 x 180,000 gallons = $270,000 now subtract the cost of the Oil $270,000 - $222,500 = $47,500 so thats about right Farmer gets about $47,500 a year to produce the Cheese so that the 1 school teacher can earn a $90,000 dollar a year salary. well obviously when the Farmer sells his cheese to the Muslim Brotherhood he needs to get at least $50.00 a pound. sincerely Fezzy Bear
Two Wisconsin teachers make about $90,000.
58,000 a year, but they more then make up for it with the 0.2 at 30 at 100% formula.
Wow, is there some idiot conservative web site that posts that BS $90,000 number? Because that is just not true so of course all the rest of your math is off.
Oh, and you forgot to add all the billions of tax breaks that don't go to pay for those salaries because the new governor just gifted the rich people more breaks so he could repay them for contributing to his campaign and then get the money from the working class.
However, don't let little things like the facts get in the way of your poorly paragraphed story!(Try hitting enter every now and then to add spaces between sentences... it makes it easier to read... no, really!!)
Hello Concerned Beaker 1, "" Beaker1
Wow, is there some idiot conservative web site that posts that BS $90,000 number? Because that is just not true so of course all the rest of your math is off."" I don't think so, the only mistake in my math is the number of bails of hay per acre, I don't think even on a bumper year that you can get 40 bails per acre, and I think Big Tractors actually could use 100 gallons of diesel fuel a day, I think so. so my numbers are close. the whole point being that American Farmers need to get more for their grain and produce lots more money, and not just give them to the Muslim Brootherhood. let the Muslim Brotherhood eat sand neateles and camel spiders, sincerely Fezzy Bear
Fezzy Bear... Again.. the enter key is your friend.. really, try using it once in a while!!
So you are saying ALL state tax income comes from farmers? Um, no.. sorry, your math sucks because your starting number is BS.
And you need to STOP watching Glen "I'm nuts" Beck because the MB has nothing to do with Wisconsin. It's the corporations paying Walker back for their "secret" donations is what is going on.
Great job beaker two posts in a row insulted everybody said nothing.
Party is over libbie, you dweebs should have recived the message at election time, apparently the liberal attention deficit, disorder rages on
It is "bales of hay", not "bails of hay". A "bail" is a scoop or pail used to throw water out of a boat; among other definitions. A "bale" is a large bundle of merchandise or material securely wrapped or bound for shipping or storage. Just a FYI
Until you hear the medicare card carrying teabaggers whining about spending cuts being too deep there will be no meaningful cuts...trust me when they start cutting medicaid, medicare, socialist security, defense and Va there will be crying and whining from the angry white trailer trash crowd.
The left should had thought more about it when they WAIVED the 2010-2010 budget. Which FYI is their primary JOB. And just a FYI Wisconsin also in December 2010 called a special lame duck session (Majority Democrats) to pass the teachers contract. IT FAILED. Maybe instead of the Jackass we need to change their symbol to the Chicken.
As a teabagger, I volunteer to give up my SS and Medicare. All that without burning down a single building like you worthless libs do whenever your entitlements are threatened.
Rick:
There should be cuts across the board, to include entitlements.
You sound like a racist who hates whites. I thought all Liberals were kindly and civil.
"JobSeeker - As a teabagger, I volunteer to give up my SS and Medicare."
Let's see you do that!! Put up or shut up!!
I'll look for you on the news tonight because if you did that you'd make every new station in the nation!! You're all talk just like all republicans and one of the problems!!
RICK, we are perfectly willing to talk about SS cuts and medicare cuts, Although they paid into the program , every week of their working life.
All you have to do is tell us what percentage you want to cut.
The we will cut every non pay in program that amount, FIRST, you know, welfare, public housing, WIC negative income tax. low income studedt loans, FHA F Mac , F Mae.
Why do you parasites/parasite enablers always head straight for the programs that people have paid into all of their life and never mention the vampire programs that are handed out free?
You dems/linbbies, seem to have a an affinity for the tick programs.
Beaker,
I'm 7 years away from being eligible for SS and Medicare. I hope they do away with it before I get there, along with every other entitlement. It's everyone for himself. Can you handle that?
Yeah, stupidity is expensive.
The extra cost incurred due to a government shutdown is a drop in the bucket compared to the cost savings of even a mildly significant budget decrease. $1.25 billion dollars? The government's operating budget is nearly $3T. That's a nearly unfathomable number. The excess cost represents approximately .0005% of the budget.
Nice try MSNBC. Using facts and figures without the proper context to fool the uninformed. How much longer will this charade of a news organization continue to operate?
1 million dollars in interest alone every 11 seconds.
JoAnna-Many of us worked through that furlough as essential personnel. Had to come to work, still had to pay the daycare center, still had to buy gas to get to/from work. But NO paycheck until a budget was passed, which was amost a month later. Tell me how many private sector employees would basically come to work everyday with a promise of a check "someday". I'd think not many.
Find other work, we won't even replace you.
I am so sick of everyone whining and blaming and passing the buck. This government needs to sit down and seriously negotiate. This attitude of "acting like spoiled brats if you dont get your way" has to stop. If you are serious you would take back that stupid tax cut for the rich if you really gave a darn about this country. You cant preach about how broke we are and how we GOT to cut everything that most of us need to live just so you can keep the rich and big corporations all cushy then grip about not having balanced budgets. We all got to start living within our means and that includes everyone paying their share..including the rich and corporations. Grow up people....everyone needs to pay their share not just the lower and middle class. Oh and quit subsidizing these oil companies who are already making record profits...they dont need it and we are paying thru the nose for gas anyway. When is the last time a politician took a pay cut?
The problem with State Democrats and those in Washington as well, is the fact that they have sold their souls to big labor. They have been bought, part n parcel with misdirected union dues. They will not compromise because it will mean certain extinction for them in their elected office.
Okay, let take the tax cut back for every body, that will be even better and much better for the country.
I bet a buck, you won't go for that.
I would. Go ahead and take it back. It didn't give me that much.
Why do federal employee get paid for not working but people that work for private companies won't. Doesn't this kind of highlight what is driving our budget problems in Washington?
For as long as it takes to pass a budget past the deadline, no one in Congress should be paid. No salary; no benefits; no retroactive pay after the fact. If that doesn't force a little bipartisanship and compromise, nothing will.
Budget hasn't been done in almost a year and a half now.
Sounds good, but then again I believe a politicians pay should be based on the performance of the economy. Maybe then they will pay attention to who is following the rules.
I've read through all of these comments and to be quite frank, I think most of you are the problem. I don't care whether you're Republican or Democrat. Until everyone in this country decides WE ALL need to WORK together to resolve these issues, nothing will get done. Everyone's to busy pointing the finger at the other side, 'how can I blame the other party'. How about we flood every politician in Washington with e-mails and phone calls telling to sit their butt at the table to get something done. Don't encourage them to use the other party as a scape goat.
Any shutdown is a good shutdown fiscally. It may cost a little money, but in proportion, the cost savings overall will be huge. During the Clinton era there was big savings. Bring it on!
TC you have no idea the trickle down economics works. It will cost more money the longer it is shut down. This is a power trip It has nothing to do with saving money.
stupid republicans throwing away more money on pointless political stunts.
Joe, lol, It's funny to read the post on here. You have to wonder if people either read what they type or think before they type.
JOE they don't have choice, they ran on and were award a huge electoral vicory for it, cutting spending.
If Obama wants to play chicken, great, shut the b#itch down and leave it down till Nov. 2012.
If that is the only way to keep the inept lying quasi socialist in the white house from spending money, that is what we expect thm to do.
We have no intention of compromising or cooperating.
The dem veriosn of those two, is be quiet and hold still while we drink your blood., we will decline that.
Go ahead! Shut er down. You haven't got the guts! I'm tired of all the cheap talk from the GOP. Let's back it up with action and shut the beast down. We'll soon find out who will pay for such a move. The GOP ain't got the guts! Watch how they wimp out at the last minute.
If they wimp out they will be gone in Nov. 2012.
They campaigned on cutting spending and were awarded the larget electoral victory in 70 years.
Now if they have to shut it down to do that,, they can do that it down or be gone in 2012.
If the gov't does shut down, all Congress members and Obama should not be paid for the time it is shut down.
The President and All congress members do get paid. It is only (us) federal workers that have to suffer due to their lack of planning and agreeing.
Ah I read your posts and wondered. You're a Federal worker so that answers the question of why you are angry.
We can't win for losing!
First off the budget was NEVER done in 2010. Did anyone here pay any attention to that at the time? Did you see congress/Senate yelling to get a budget done?
I say shut the govt down - who cares? They arent doing anything anyway, govt is inept, they are pointless, they are wasteful, and every public sector employee is grossly overpaid and a horrible lazy worker. So, shut the damn thing down...
according to republicans, if they are so inept and worthless and pointless...shut the fed down for 3 months, and lets see how pointless all this federal spending is.
Jessica - You are another waste of life. Have fun at you minimum wage job. Or have more kids so I can support you with my taxes.
100 million a day ? Sounds like someone is being taken for a " no bid contract ride here" !
1 million dollars alone every 11 seconds on interest.
Budget Hero is a game that lets you choose how the federal budget will be ... How did Congress balance the budget in the 90s? They cut the capital gains tax ...
marketplace.publicradio.org/features/budget_hero/
Lets see if any one here can balance the budget.
Fact of the matter is the Dems failed to pass a budget when they had total control. The nation voted and now the Republicans have a say so in the matter and the Dems are calling foul. Just take the 2 week budget and negotiate. You don't need a whole month to find some common ground. The nation voted that we didn't like the way things were so continuing on with the current budget is against the majority of voters.
Very true. Elections have consequences. We will see to what extent and if the Republicans have anything that resembles a spine in their backs. They need to ask for more cuts or shut the puppy down.
Well, we all know that the federal laws apply to everyone, but the people that drew them up.....and that's where they need to be applied the most !