Tuesday, October 1, 2013

The day dawned, October 1, 2013, the first day of fiscal year 2014, and the Federal Government is shut down. An (under-)estimated 800,000 Federal employees have been told to stay home.  No job.  No pay.  And the expectation that if and when the dispute is resolved, lost pay will not be restored.  But, presumably, the work will get done.
 
And where will this end?  On Capitol Hill, most staff have been deemed "essential" for fear of press reports that our elected representatives may have employed "nonessential" staff at taxpayer expense. The House and Senate are no closer to agreement to defund, delay, or suspend Obamacare as the cost of enacting a sequester-level Continuing Resolution to keep the Federal Government running temporarily until November 15, December 15, sooner, later?  
 
The last chess play was the House attempt to "request a conference" on the CR -- to which Senate Majority Leader Reid responded "not with a gun to our head," while reminding lawmakers that for 6 months the House has refused to sit down at a conference on the competing House and Senate Budget Resolutions passed 6 months ago.
 
And prior to that: House Republicans proposed denying Members, their staff, and executive branch political employees an employer contribution for their employer-sponsored health insurance (a benefit in place since the 1960's).  The Senate rejected that proposal. too.  
 
A precursor to a mid-October expiration of the Federal Debt Limit?  At what cost?  Yesterday, in anticipation of the potential government shutdown, the stock market was down modestly (100-150 points).  "So, what will motivate folks to resolve this?" one Member asked us yesterday.  "A market drop of 2,000+ over a day or two?" we predicted.
 
Time will tell.  Long past the time we no longer have.
 
Let us hope that this shutdown does not cost lives or real harm.  Certainly, more than inconvenient now, particularly for Federal employees and their families.  But what of the people they serve? Where will the pain be felt first for this unfortunate game of budget chicken.
 
Maybe, at least, traffic will be a bit lighter.
 
Happy New Year (FY 2014)

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