Federal shutdown services would continue
The current battle over spending and deficits may force the federal government to shut down temporarily when it reaches its debt ceiling, which will occur by May 16. Even with a shutdown, not anything will shut down. Some things will continue. Nevertheless, there could be the United States USPS working. This is because it finances itself for the most part. MSNBC reports that the any services in the government "involving the safety of human life or the protection of property" won't be shutdown. There may also be Social Security benefits continuing.
No more pay for government workers
Government employees are the ones that are likely to lose probably the most. Some will not have to worry; air traffic controllers will nevertheless be needed, and allowing members of the military to miss a paycheck would be political suicide. However, employees in agencies that are involved in clerical, managerial or financial roles will probably be put on a furlough. Nevertheless, there was pay frozen for several employees already. The Obama administration put these pay freezes in place. Contractors who work for the government, several of whom are small businesses, will also lose revenue, according to the Wall Street Journal. Any revenue that contractors or government employees lose may not be reimbursed.
Preparing for shutdown
In case there was a government shutdown, some contingency plans were already in place. The Credit Union Times reports that any members on temporary federal government shutdown layoffs can be able to get zero percent interest furlough loans from the Cabrillo Credit Union in San Diego. Check your local credit union to see if they offer a program like this. There were many offered during the 1995-1996 shutdowns that occurred. Timothy Geithner, Treasury Secretary, states the shutdown would trigger him to consider dipping into the Social Security Trust Fund. Reuters states this would make sure all government employees have the funding they need during this time.
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
Resource for this article - Government employees to bear brunt of government shutdown by MoneyBlogNewz.
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