The Era of Big Government is Over

As you wake this morning, you are undoubtedly hearing the world is ending, the sky is falling 

and there is no Santa Claus. Worse than that—if you are listening to some—the “anarchists” have shutdown the US Government and so doing they have loosed the Hounds of Hell and sent the Four Horseman of the Apocalypse on a mission to destroy the world.

What does this mean?

To many middle-aged individuals we can remember all of the shutdowns starting in 1977 under President Jimmy Carter through the last shutdown in 1996 under President Bill Clinton. In all of the previous shutdowns, all three entities (President, House of Representatives and Senate) work together to arrive at a budget for the next Fiscal Year (FY). The government’s Fiscal Year runs from 01 OCT through 30 SEP of the following year.

Our Constitution gives Congress control on how federal money is spent in an attempt to limit the power of the president. The government can only spend money “in consequence of appropriations made by law”.

United States Constitution requires Congress with the approval of the President, to authorize all federal expenditures. This is accomplished by producing a budget proposal that consists of three parts (1) Total Government expenditures (defense, social programs, federal aid to foreign entities, etc) (2) Total Government income (from taxes and other sources of income like fees and enrollment premiums) (3) Total Net Difference between the two. More income to expenses—a surplus. More expense to income—a deficit. It is important to note the Budget Process starts with the President submitting to Congress his vision of what he wants to accomplish. A Budget.

The President must submit—as required by The Budget and Accounting Act of 1921 (BAA)— by the first Monday of February his budget for consideration for the next FY. President Obama has missed this deadline in four of the five years of his presidency. Obama is the only President in the 92 years of BAA, to miss the deadline two years in a row and then three years in a row. He also holds the record for longest delay at 98 days.

President Barak Obama (D)

Budget Submission Required Date and Submitted Date

02 FEB 09        11 MAY 09

01 FEB 10        01 FEB 10        (Failed Senate 0-97)

07 FEB 11        14 FEB 11

06 FEB 12        13 FEB 12        (Failed House 0-414)

04 FEB 13        25 MAR 13

No budget passed since 2007.

When Congress and the President fail to pass a Budget, they then pass a Continuing Resolution or CR. What is a Continuing Resolution (CR)? Anytime government fails to pass a regular budget, it may pass legislation to fund critical aspects of government until a formal appropriations bill is signed into law. We have been operating under a CR since 2008.

Shutdowns by the Numbers

18 shutdowns since 1976 (including present)

109 total days (excluding present)

6.4 days average per shutdown (excluding present)

9 under a Democratic President

9 under a Republican President

9 where same party controlled both House and Senate

3 with Democratic President and Republican House majority

9 with Republican President and Democratic House majority

5 with Democratic President and Democratic House and Senate majority

0 with Republican President and Republican House and Senate majority

Interesting note. The Democrats are quick to remind everyone that it was Bill Clinton that provided a surplus and had a balanced budget. What they conveniently fail to say, it was because of the Republican controlled House and Senate that forced a government shutdown in an effort to have a balanced budget. After the budget battle, President Clinton moved to the center and had a good relationship with Congress. In his 1996 State of the Union Address, he said,

“We must answer here three fundamental questions: First, how do we make the American Dream of opportunity for all a reality for all Americans who are willing to work for it? Second, how do we preserve our old and enduring values as we move into the future? And, third, how do we meet these challenges together, as one America?

We know big government does not have all the answers. We know there’s not a program for every problem. We have worked to give the American people a smaller, less bureaucratic government in Washington. And we have to give the American people one that lives within its means.

The era of big government is over.”

Of specific importance is the role the President has in the budget process. It starts with him and his Budget submission and he must be involved when an impasse is reached. He must be willing to act as referee between the House and Senate and willing to negotiate when one or both disagree with his budget. President Obama has vowed he will not negotiate. He sees no reason to negotiate. In 2009, shortly after taking office in his first term Obama told Republicans during stimulus-bill discussions that “elections have consequences”. He believes that since he was elected and since re-elected, the people have spoken and want whatever he thinks is best. This is evidenced in his comment during an NPR interview yesterday when asked "What can you offer?". "What can I offer?--I shouldn't have to offer anything. They're not doing me a favor...."

In each of the other shutdowns, the sitting President negotiated; of note is President Reagan with Speaker O’Neill and President Clinton and Speaker Gingrich. As noted in the above reference to Clinton’s State of the Union Address, he worked with Congress and had great success doing so. It is important to consider his comments referencing “Big Government”. He acknowledges that Government is not the answer to all problems. Furthermore, every American should be treated fairly and have equal opportunity. Today, we have a President and Senate that believe if left to their own wisdom; the public does not have sense enough to come in from the rain and needs Government to help them in all areas of their lives.

Speaker John Boehner (R)

The sound bites from the differing representatives are on opposite ends with ACA in the middle. Republicans do not want to advance ACA when it is unfairly administered. Congress, and other government employees receive subsidies the rest of Americans do not receive. Friends of the Administration have received exemptions for their companies from the ACA, while opponents were denied. They simply want “fairness”. However, I submit this is not only a stance against unfair practices enacted by this administration; it is a stance against government intrusion into our lives. It is about spending more than we take in taxes and revenue. It is about limiting government. Sadly, I think President Clinton’s declaration “The era of Big Government is over”, was wrong. It has rebounded and is larger than ever.

Regardless, of the political debate, we are in the midst of a shutdown. True to form, President Obama and his minions are attempting to scare the public. Remember sequester? He and his administration told of all the horror stories of no TSA agents, no White House tours, National Parks closed indefinitely—he wanted the sequester to hurt. With the shutdown, they said veterans will not be able to get health care because VA hospitals will be closed. Those needing medical care and medication for PTSD will be turned away. WRONG! Single mothers will not have any money to buy groceries for her family. WRONG!

How will the shutdown impact me?

Closed or reduced Services

800,000 federal workers furloughed

National Parks and Monuments Closed

FDA routine safety inspections (except for grain)

NASA Mission controlled staffed (18,000 employees furloughed)

Veterans’ disability compensation claims delayed

FHA (new) backed mortgages new claims not processed

PX and Commissaries closed

IRS tax refunds on hold

DHS suspends E-verify program

Open or no change

Air Traffic Controllers & TSA

Passport and Visa applications

Social Security & Medicare payments

Unemployment benefits & food stamps (SNAP)

No change for US military still paid ON TIME

No change to VA benefits (funded 365 days in advance)

USPS open

National Weather Service (still issuing forecasts)

National Hurricane Center (still tracking storms)

Synopsis of Shutdowns

2013    01 OCT to Present

Pres. Obama (D) House (R) Senate (D) Speaker John Boehner, Senate Pres. Pro Tem Patrick Leahy

Republican House does not want Affordable Care Act (ACA) aka Obamacare, to be unfairly applied. Make sure every American is treated like exempt groups. Government employees get subsidies and exemptions that other Americans do not. House has presented three CR, each rejected by Senate. Speaker spoke to President in early morning and President said emphatically, he will not negotiate.

1995    16 DEC to 06 JAN 96 (21 Days)

Pres. Clinton (D) House (R) Senate (R) Speaker Newt Gingrich, Senate Pres. Pro Tem Strom Thurmond

President Clinton and Congress disagreed on which numbers to use to balance budget. CBO or OMB.

            13 NOV to 19 NOV (5 Days)

Pres. Clinton (D) House (R) Senate (R) Speaker Newt Gingrich, Senate Pres. Pro Tem Strom Thurmond

Republican controlled House and Senate wanted a time-table for a balanced budget.

1990    05 OCT to 09 OCT (4 Days)

Pres. Bush (R) House (D) Senate (D) Speaker Tom Foley, Senate Pres. Pro Tem Robert Byrd

Pres. Bush vowed “no new taxes” and held firm and House and Senate saw the polls and agreed to deficit reduction requests.

1987    18 DEC to 20 DEC (1 Day)

Pres. Reagan (R) House (D) Senate (D) Speaker Jim Wright, Senate Pres. Pro Tem John C. Stennis

Democratic House and Senate opposed funding for Contras and pushed Fairness Doctrine. Backed off the Fairness Doctrine.

1986    16 OCT to 18 OCT (1 Day)

Pres. Reagan (R) House (D) Senate (R) Speaker Tip O’Neill, Pres. Pro Tem Strom Thurmond

Compromise reached by Democratic House dropping demands in exchange for welfare package.

1984    30 SEP to 05 OCT (3 Day)

Pres. Reagan (R) House (D) Senate (R) Speaker Tip O’Neill, Senate Pres. Pro Tem Strom Thurmond

Pres. Reagan compromised on a crime fighting package and was able to get funding for Nicaraguan Contras.

1983    10 NOV to 14 NOV (3 Days)

Pres. Reagan (R) House (D) Senate (R) Speaker Tip O’Neill, Senate Pres. Pro Tem Strom Thurmond

Oil and gas leasing was banned in federal wildlife refuges in exchange for more funding for MX missile and reduced education funding from Federal level.

1982    17 DEC to 21 DEC (3 Days)

Pres. Reagan (R), House (D) Senate (R) Speaker Tip O’Neill, Pres. Senate Pro Tem Strom Thurmond

Pres. Reagan compromised on funding both the MX and Pershing II missiles (got MX) and allowed funding to continue for Legal Services Corporation.

            30 SEPT to 02 OCT (1 Day)

Pres. Reagan (R), House (D) Senate (R) Speaker Tip O’Neill, Senate Pres Pro Tem Strom Thurmond

Continuation of previous shutdown only to give Congress time to pass.

1981    20 NOV to 23 NOV (2 Days)

Pres. Reagan (R), House (D) Senate (R) Speaker Tip O’Neill, Senate Pres. Pro Tem Strom Thurmond

Pres. Reagan stood firm until he received $8 B in cuts.

1979    30 SEP to 12 OCT (11 Days)

Pres. Carter (D), House (D) Senate (D) Speaker Tip O'Neill, Senate Pres. Pro Tem Warren Magnuson

Problems continue between House and Senate on Medicaid funded abortions. Additionally, House sponsored a 5.5% increase in pay for congress.

1978    30 SEP to 18 OCT (18 Days)

Pres. Carter (D) House (D) Senate (D) Speaker Tip O’Neill, Senate Pres Pro Tem James Eastland

Pres. Carter vetoed a defense for a nuclear-powered aircraft carrier. Continuing problems for Dept. of HEW for Medicaid funding of abortions.

1977    30 NOV to 09 DEC (8 Days)

Pres. Carter (D) House (D) Senate (D) Speaker Tip O’Neill, Senate Pres Pro Tem James Eastland

Second temporary funding agreement expired.

            31 OCT to 09 NOV (8 Days)

Pres. Carter (D) House (D) Senate (D) Speaker Tip O’Neill, Pres. Senate Pro Tem James Eastland

Earlier temporary funding expired.

            30 SEP to 13 OCT (12 Days)

Pres. Carter (D) House (D) Senate (D) Speaker Tip O’Neill, Pres. Senate Pro Tem James Eastland

Democratic House wanted to uphold ban using Medicaid money to pay for abortions. Democratic Senate wanted to expand to pay for abortions in case of rape or incest.

1976    30 SEP to 11 OCT (10 Days)

Pres. Ford (R) House (D) Senate (D) Speaker Tip O’Neill, Senate Pres. Pro Tem James Eastland

Pres. Ford vetoed appropriations bill for Dept. of Labor and Dept. of HEW