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Effects on the Federal Workforce and Other Sectors - Essay Example

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This essay "Effects on the Federal Workforce and Other Sectors" analyzes the understanding of how the government shutdown occurs, as well as its adverse effects on the federal employees, public, and business institutions that are involved in providing goods and services to the federal government…
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Effects on the Federal Workforce and Other Sectors
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Download file to see previous pages Government agencies will cease in the procurement of equipment or service, installation of equipment, and suspend delivery of equipment to these agencies. The closing will cause tremendous losses for the company especially when a significant part of the market share of the business comprises the government offices. On the event of a Federal shutdown, several government agencies will furlough most of its employees. However, specific institutions will still continually operate on a normal basis. These agencies include police, fire fighting, postal services, armed forces, utilizes, air traffic management, and the penal system.
The goal of the strategy and planning of a business company is to be able to pinpoint the affected areas during a shutdown and be able to anticipate its effects on normal operations. It will also be beneficial for the company if it can establish a contingency plan that will cover the overall course of action on the onset of the shutdown. This can be developed with the help of past records and data of occurrences of government shutdowns. The plan should also specifically cover the abrupt changes that will be experienced in the operations and how the company can reduce the losses that will be associated with the reduction of revenues for the next hours or days wherein the shutdown will take place.
Federal Shutdown
Government or Federal shutdowns occur when the legislative body and the executive body, in terms of its vetoed legislative power, do not agree on a budget appropriation on its government programs for a certain fiscal year. The absence of appropriation funds causes the government to discontinue providing non-essential services during the start of the fiscal year. During this specific situation of the US federal government, the Antideficiency Act, as well as the legal opinions such the one written by Attorney General Benjamin Civiletti in 1981, will define the constitutional actions in the absence of the budget appropriation (Seam and Shron, 2005).
The longest partial shutdown that was experienced by the US federal government began on December 16, 1995, under President Clinton’s administration, wherein an estimated 260,000 federal employees were furloughed. The shutdown ended on January 6, 1996, after 21 days of the federal shutdown. The shutdown was lifted after the White House and the Congress on a new resolution that will provide funding for the government until January 23, 1996. However, the earlier shutdown during the said fiscal year reported an estimated 800,000 federal employees furloughed (McGrath, 1997).
Causes of Federal Shutdown
Federal Fiscal year begins every 1st of October. Agencies and programs that are funded with an annual appropriations act usually depend on the interim that will be enacted by the President and the Congress for a full-year appropriation. On the event that both parties will be unable to enact the appropriations into law, the government activities cannot continue operation. This is considered as a funding gap and can also occur when a CR expires and another CR is not enacted immediately after. Funding gaps result in a state of shutdown in the government, specifically on the areas that are affected including the furlough of non-emergency employees and ceasing of agency activities and services. ...Download file to see next pages Read More
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