Feb 19, 2011

What Happens At Social Security In The Event Of A Prolonged Government Shutdown?

Early this morning, the House of Representatives passed a bill to fund government operations for the remainder of the fiscal year. The bill contains massive spending cuts that would cripple the Social Security Administration and many other agencies. It also contains myriad provisions that Democrats find unacceptable, such as a prohibition on use of funds to implement health care reform. Quick agreement with the Senate and the President on a compromise seems unlikely. A government shutdown looms if there is no agreement by March 4.

The most recent time there was a government shutdown, in 1995, most Social Security employees were furloughed but then quickly called back to work on an emergency basis. Social Security employees should not take too much comfort from this history. It is uncertain how many Social Security employees would remain on their jobs if there is a shutdown this year.

There is another issue. March 10 is a payday for federal employees. Even if most Social Security employees stay on their jobs, will they receive a paycheck on March 10 if the impasse is continuing? I am not sure but I think the answer is "yes" for that paycheck since I believe it is for work performed before March 4 but I think that the answer would be "no" for the next payday of March 24 unless Social Security can use funds previously appropriated for construction of a new National Computer Center.

Is it conceivable that this budget impasse would result in a government shutdown that would extend three weeks? I am afraid so.

An extended impasse may also make it impossible for Social Security to pay contractors such as security guard companies. How long will they be able to continue supplying vital services to Social Security without being paid?

15 comments:

Anonymous said...

You are wrong. All employees get direct deposit, and the next scheduled pay day is March 4th, and under the current CR, there is funding until the end of the day on March 4th. So we will get our next "paycheck." Please check your facts more closely before you post.

Anonymous said...

Anon 12:53 I think Charles has been doing an excellent job. He gets us a lot of good information in one convenient place. He is not an Agency insider/fed so cut him some slack with inside arcane info.

Why are you so sensitive? Are you one of those Tea party supporters who now rues the day? You won't be lonely for long.

Anonymous said...

While there will be direct deposit, what about the agency employees who must be on duty to process and certify payroll? What about the employees at Dept of Interior who must send the payroll information for payment?

izmir çetesi said...

thank you

Anonymous said...

I'm not sensative or in the tea party. I just think if you are going to run a blog and pass yourself off as an expert, you should have your facts straight. People may read misinformation like that and worry about something when there is nothing to worry about. If anyone is sensitive, it is you - sensative to constructive criticism.

Anonymous said...

Now boys and girls, behave.

Anonymous said...

If I'm furloughed, I blame Obama and the Democrats. They had a majority in both houses before the election and could have passed a budget, but they were too busy d*cking around with the stupid healthcare and the stimulus bills that didn't stimulate anything but the deficit and debt.

Anonymous said...

If you weren't so sensitive, you wouldn't have responded. I am not Charles, so I have nothing to be sensitive about. But I am disgusted by the way that the T-party is helping to erode the great democracy that we live in. which brings me to my real reason for reposing:

Anon 3:57 - The reason that a full budget wasn't passed was because Republicans would not play ball because they thought that it would improper in light of the "revolution" among its ranks and the new T-party members "swept in" by the November elections. Ergo a continuing resolution was passed.

Now those old-time Republicans can be "wept in" because the T-party retards are making a mess of everything.

What's that saying, be careful what you wish for, you might just get it!

Anonymous said...

"Anon 3:57 - The reason that a full budget wasn't passed was because Republicans would not play ball because they thought that it would improper in light of the "revolution" among its ranks and the new T-party members "swept in" by the November elections. Ergo a continuing resolution was passed."

The 2011 budget year started October 1st 2010. What the hell were they doing from Oct 1st 2009 until September 30 2010? They had a majority in both house and could have passed anything before the election without the Republicans doing a thing. So to say a CR was signed because of the election is BS. Only had a CR in the first place because they didn't do their job.

Anonymous said...

Anon 8:30, take a gander at this. I don't have time to argue facts with you when you can simply look them up for yourself. Oh, that's right, you must make your decisions based on the old "we report, you decide" network. Google the following excerpt and it will tell you what really happened and what continues to happen. The GOP is out to destroy the Obama Admin no matter what the cost.

Track this:

Until now, that is. Prominent Republicans — including Rep. Lynn Westmoreland (Ga.), a vice chairwoman of the National Republican Congressional Committee and Gingrich — are again talking favorably about a government shutdown. They say the GOP should use the budget process to force its preferences on the Obama administration if it gains a Congressional majority in November.

In some respects, this is hard to imagine. Not only were the shutdowns a political disaster for the Republicans, they were also expensive for taxpayers. Repeatedly planning to shut down government departments and then actually locking the doors cost money that wouldn’t otherwise be spent. In other words — and very ironically from a federal budget perspective — government shutdowns increase the immediate deficit and are almost the classic definition of waste, fraud and abuse.

SocSctyPotluck said...

I am a veteran of the 1995-96 furloughs. I worked for SSA then. During the shutdown, Federal employee checks stopped. We weren't paid until about February, even those of us, like myself, who were "essential employees" who reported to work every day, who kept offices open, who answered as many phones as we could reach, and who talked to people who came in through the front door. No real work got done.

The January 1, 1996 SSI payments and January 3, 1996 Social Security benefits were not processed and sent until after the shutdown ended - I seem to recall they were about a week late.

I think there well be a shutdown this time, but I also think there is a good chance it will end before the March 9 Social Security payments are stopped. If those payments are seriously delayed, they will largely blame the Teabaggers, whom, I am sure, know this. They'll make their gesture, then think of November, 2012.

Anonymous said...

"They say the GOP should use the budget process to force its preferences on the Obama administration if it gains a Congressional majority in November."

Once again if you have majority in both houses and don't pass a budget, you can't blame the Republicans for there being a CR. Now maybe after the election the Republicans could possibly have plans to slam Obama, but if the Democrats had done their work there would have been a 2011 budget ready to roll on October 1st 2010.

BTW I get my info from Ron Smith on WBAL radio 1090 Mon-FRI 9:00 a.m. until noon and market-ticker.org, not FOX.

Nancy Ortiz said...

Anonymous 4:35--I would think that you could do better than get your news from a radio talkshow host. However, there is no advantage for the Republicans to agree to anything this administration proposes. The Republican party always benefits by running up large deficits and national debts and then blaming the Democratic incumbents in Congress in the WH for the problems they caused.Tax and spend, remember?

Look at it this way. If government is the problem, then Republicans have no obligation to make governing easy for the Dems when the Dems have majorities in Congress or a Dem in the WH. The object of the game for Republicans is to divest the govt of many of its functions by defunding or privatizing them. That's nothing to be ashamed of from their perspective. So, whether it is 13 appropriations bills passed into law or a CR, the game is the same. Don't be so slow to take credit for a successful strategy. I'm calling the game in favor of the Republicans at this point. You win, 4:35. Good for you, bad for me.

Anonymous said...

"Anonymous 4:35--I would think that you could do better than get your news from a radio talk show host."

I guess information only counts if it comes from the New York Times or Washington Post.

As an SSA employee I'm going to suffer if the government shuts down or I get furloughed, but spending needs to be controlled. My problem with the way the Republicans are doing it is chopping everything from one section of the budget. DOD needs to be cut and ALL foreign needs to go.

Anonymous said...

Funny thing, Nancy and Anon 8:15, you're both right. My take is that let's see what happens when the shoe drops and that the government actually shuts down. If the people don't bitch too much, then the GOP wins.

A lot of this depends on how long this thing goes. The media will defend the power structure, so we won't see stories of how some old lady died because she couldn't pay her light bill. Big difference from 1995.

I wish I lived in Madison right now.