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The Price Of A Government Shutdown


So if the federal government shuts down, taxpayers would save a lot of money, right?

Not quite.

In fact, it would cost taxpayers money. And for every day the closure continues, the bill would go up.

"There is absolutely no way that saves money. Postal," said Bo Cutter, a former director of the National Economic Council and a senior fellow at the Roosevelt Institute.

It is very difficult to put an exact price of a closure. Official estimates of the costs incurred during the recent closures of major in 1995 and 1996 vary widely.

And the White House has not provided an estimate of how much could cost a close, but does say it will cost something.

First, the government actually has to spend money to complete an orderly shutdown.

"When you have to close something down, it costs money, and ramp back up something costs money," said Jeffrey Zients, deputy director of the Office of Management and Budget Thursday.

Imagine a government construction project. Since it is impossible to know how long the closure, workers are forced to take down all operations and ensure the workplace. That all costs money.

It is a process that is repeated throughout the country, and every government agency. In addition, more funding is restored, it will cost money for the project back up to speed.

Meanwhile, costs will increase the longer shutdown is extended.

"The longer the closure is in place, the largest costs become," said John F. Cooney, a partner at Venable law firm who designed the closure plans for the government while employed at the Office of Management and Budget.

There is also the issue of pay of federal workers.

When the clock strikes midnight and starts a stop payment checks to ensure that federal workers. But that will not be saving taxpayers money.

When a close finish after Congress approved a spending bill, the "essential" workers remained in the job automatically be paid for time worked during the closure.

And the roughly 800,000 workers could be fired? At each end of the previous government, Congress has authorized the retroactive payment for them too, even for days not worked. One caveat: There is no guarantee it will happen again.

But if you do, be a double whammy. The workers receive their paychecks, but the work they normally have accumulated in the meantime. When workers return, the agencies may have to pay overtime only to catch up with all the work was not done at closing.

And not just the government to end with a larger bill, the less income as well.

Some agencies - such as the National Park Service - Fees charges. When closed, no fees are collected. On an average day, visitors spent $ 32 million National Parks.

There are also intangible costs, especially when the productivity of federal workers is considered.

"You've been working your ass ... and someone comes to tell you that are not essential?" Cutter said. "There is a problem of enormous moral management when everyone returns to work."

Of course, when the closure is considered in the context of larger budget negotiations, the process is almost certainly a savings to taxpayers. That's because both Democrats and Republicans agree that a compromise spending bill would cut tens of billions of federal budget.
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