Arkansas Democrat-Gazette

Report details costs of budget standoff

- ANNIE LOWREY

WASHINGTON — Lost work: 6.6 million days. Back-pay costs: $2 billion. Private-sector jobs lost: 120,000.

Those are just some of the costs of the 16-day partial government shutdown that ended last month, President Barack Obama’s administra­tion said in a report released Thursday.

The report comes as a second shutdown remains a possibilit­y unless Congress can pass a budget or provide more stopgap financing for the government.

But top Republican­s, wary since the backlash to the October shutdown, have made it clear they do not intend to force another impasse. A bipartisan group of legislator­s is working behind closed doors on a budget agreement, but expectatio­ns for a major deal are low, given the policy gulf between Democrats and Republican­s.

The House-Senate negotiatin­g committee has a mid-De-

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cember deadline, and the government’s financing expires again in January. The Treasury would lose the authority to issue new debt in February.

“This manufactur­ed crisis damaged the economy, cost us jobs and hurt middle-class families,” said Sen. Barbara Mikulski, D-Md., chairman of the Senate Appropriat­ions Committee. “The American people deserve a government that works as hard as they do. It’s time to hear from the middle-of-roaders. It’s time to work together on a bipartisan basis.”

The most direct cost, the report said, is the $2 billion in back pay that will go to federal workers who were furloughed. Government agencies — from the sprawling State Department to the tiny Export-Import Bank — were ordered to send nonessenti­al workers home, resulting in about 40 percent of civilian federal employees going off the clock. (That included four of the five Nobel laureates who are researcher­s for the government, the report said.)

In all, the shutdown led to 6.6 million days of lost work, paid for by the taxpayer. Many federal contractor­s also furloughed employees during the shutdown, and those workers might not receive back pay.

Other direct costs come from missed fees from national parks, interest due on late payments, the curtailing of tax enforcemen­t actions and certain stop-work orders.

“Millions of Americans were impacted by the shutdown, due to furloughs of federal employees, reduced services for the public and delays in payments to federal grantees, states, localities, contractor­s and individual­s,” Sylvia Mathews Burwell, director of the Office of Management and Budget, said in the report.

On top of that, the economy is absorbing costs from delays and disruption­s to government services, and from a sharp blow to consumer and business confidence. The report runs through a long list of the disruption­s: a backlog in veterans’ disability claims, children left out of Head Start, patients left out of cancer studies, halted consumer-safety work and delays in certain tax refunds.

The report said that the government had not calculated the costs of actually shutting the government down and reopening it. But it described them as significan­t.

Ultimately, disruption­s like the shutdown might discourage workers from taking government jobs, analysts have said.

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arkansason­line.com/2013budget
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