Thursday, April 7, 2011

From the White House Disability Office

Please review and circulate below information.

  • Outside economists have said a shutdown will hurt our recovery and slow economic growth, and the Speaker admitted it will cost more than it saves.
  • If a shutdown should occur, small businesses -- the engine of our private sector job growth – would wait for loans from the SBA, Americans who filed a paper return would wait for their IRS refund check, and mortgage lenders could cease lending because FHA wouldn’t be able to guarantee their loan.

· Two years after a devastating recession, we learned last week that more than 1.8 million jobs have been created in a little over a year. It is the height of irresponsibility to allow a shutdown just as our economy is starting to recover.


These critical services would not cease:

· Social security checks for seniors, people with disabilities and survivors would still go out.

· Troops would be able to continue to serve.

· Critical homeland security functions such as border security would continue.

These critical services would likely cease:

· FHA new home loan guarantees may cease. During spring home buying season, this suspension of new issuances could have a gravely adverse effect on recovery of housing market. Private mortgage lenders across the country could suspend new home loan closings as a result of having no assurance those loans will be guaranteed. 30% of the market is FHA loans.

· SBA approval of applications for business loan guarantees and direct loans to small businesses would likely cease, impacting the engines of our economy, which could slow economic momentum.

· IRS processing of tax refunds for paper-filed returns (approximately 30% of total), and performance of tax audits, would be suspended.

· Operation of E-Verify activities by DHS will be suspended – which could slow down new hiring.

· Patent processing will be suspended.

Other areas that would cease:

· All areas of the National Park and National Wildlife Refuge Systems will be closed. Limited access to public lands would adversely affect communities that depend on recreational tourism.

· Smithsonian Institution and National Gallery of Art will close to the public (although Kennedy Center will remain open, due to significant private funding sources).

· District of Columbia: DC Trash collection would be suspended for first 3 days of funding lapse. DC Public Libraries (except for security), and a variety of District offices that perform non-excepted functions, including the Department of Motor Vehicles, would suspend operations.


  • Rep. Boehner Said, “If You Shut The Government Down, It’ll End Up Costing More Than You’ll Save Because You Interrupt Contracts…” “‘If you shut the government down, it’ll end up costing more than you’ll save because you interrupt contracts – there are a lot ofproblems with the idea of shutting the government down – it is not the goal,’ Boehner said Friday outside his office suite in the Capitol.” [The Hill, 4/1/11]
  • Business Roundtable highlighted the negative impact on the U.S. economy and that a shutdown could impact the recovery’s momentum.

o Ivan Seidenberg, the business group’s chairman, said even a short shutdown would put this prospect at risk. ‘I don’t think any of the CEOs would welcome a government shutdown,’ said Seidenberg, also the CEO and chairman of Verizon Communications…. Seidenberg said problems for business from a shutdown would run from contracts being postponed to disruptions in the supply chain. He also said companies could have a hard time getting approvals for various licenses approved by the government. Business Roundtable President John Engler said business would also face the danger of the ‘law of unintended consequences.’ Interest rates could rise because of a shutdown, and there could be turmoil in financial markets, according to Engler, a former Republican governor of Michigan.” [The Hill, 3/30/11]

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