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Feb 25, 2011

That's A Relief

There are signs that the threat of a government shutdown is receding a bit, for now. Remember, that there is no deal yet on appropriations (and some House Republicans may balk at the deal in the works since it looks like their leadership is doing most of the blinking), the deal that may be in the works would be temporary and that appropriations are only one way in which a government shutdown could come. Congress must also pass an increase in the federal borrowing ceiling within a little more than a month and there are plenty of Republicans who have pledged never to vote for that and many House Democrats who are uninterested in taking the heat for voting for this. Probably, even an impasse on the debt ceiling would not affect Social Security since it barely contributes to the deficit.

Update: The Washington Post indicates that the proposal freezes appropriations for almost all agencies at 2010 levels. This is much better than the massive cuts in funding for the Social Security Administration initially proposed by the House of Representatives. That proposal would have put the Social Security Administration into a tailspin. However, this new proposal freezes the agency's budget at a time when the demands placed upon it are soaring because of the aging of the baby boom generation. Inevitably, this means that public service will deteriorate.

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