Shutdown Looming: What the Bay Area Needs to Know
The most recent Bay Area Economic Development District report showed a bright outlook for the area with high employment growth and a wide variety of support for the local economy. This is a result of the multiple branches of the Federal Government present there. However, the state of Congress as of now, and a possible shutdown looming over the Federal Government, has the potential to ruin all of the above. Bay Area businesses, particularly those employing Federal Government workers and nonprofits, will soon be dealing with the consequences of the government funding deadline without a passed bill.
Relationships between the Federal Government and local entities like municipalities, counties, non-profits, and businesses will be irreparably harmed. In the following paragraphs, the various negatively impacted sectors, especially the local Bay Area economy, will be explored.
What Does a Shutdown Looming Mean for Federal Employees in the Bay Area?
A complete government shutdown means 750,000 federal employees would be furloughed. Based on estimates from the nonpartisan Congressional Budget Office, the federal government would be shutting down for the first time in 27 years. When this happens, it will provide federal governmental services for 27 years. Of the 750,000 federal employees, 190,000 will be from the federal government in California, especially the Bay Area. These employees will be placed on furloughs without pay, while others may be let go for good, as some officials are recommending.
Ahmad Thomas, CEO of the Silicon Valley Leadership Group, points out:
“There is a belief that some part of the federal workforce will be permanently laid off, instead of the norm of furloughing non-essential staff and compensating them after the government shutdown is over.”
This concern is especially apparent for Bay Area federal employees where the operational duties are essential. They include TSA employees, the rangers in our national parks, and the administration of several government services—all facing uncertainty with the shutdown looming.
The Legal Response: Lawsuit on Shutdown Plans
On Tuesday, the American Federation of Government Employees (AFGE) took action for TSA agents, national park rangers, and other federal workers. They filed a lawsuit in San Francisco contesting the Administration’s plans while the government shutdown was looming. The lawsuit claims that the government does not intend to furlough employees, but to terminate tens of thousands of federal workers during the shutdown.
The lawsuit highlights the federal employees and unions fears of the shutdown effects being permanent, as opposed to the temporary disruptions. The potential harm to thousands of families puts pressure on the lawmakers to quickly find a solution.
Nonprofits and Community Services Prepare for Increased Demand
In the Bay Area, Shutdown looming and the potential ripple effects, as well as the potential government support reductions, are being predicted by nonprofit organizations, such as Second Harvest of Silicon Valley. This food bank provides countless residents, many of whom are government support reliant, with food aid.
Second Harvest has to deal with challenges like these, as explained by their CEO, Leslie Batcho, “We are anticipating an increase in demand – we have seen this before. When people lose their jobs, have to contend with a paycheck that is balancing such a tight budget, they reach out for food assistance.”
With a shutdown looming, more families could face food insecurity, and local nonprofits already working with tight budgets and limited resources have to deal with more strain. Uncertainty about food assistance to local nonprofits, like the USDA aid, makes it even more complicated, as food banks lose federal aid.
Impact on Bay Area Businesses and Innovation
When it comes to the political climate and potential government shutdown, the tech industry in Silicon Valley is like the rest of the Bay Area and is therefore susceptible. Many of these companies, like the rest of the Bay Area, are waiting for federal approvals and regulatory processes that are needed for them to continue operations.
Ahmad Thomas points out:
“Delaying major decisions when there are public FCC workers that are furloughed or deemed non-essential is a tough call.”
In a rapidly evolving tech landscape, innovation initiatives, business deals, or public offerings may be stalled due to a lack of funding, permits, or approvals caused by the shutdown looming over the government. Costly consequences may be felt across the world when major innovations are delayed in Silicon Valley.
Everyday Bay Area Residents Feel the Effects
Beyond federal workers and businesses, the consequences of a shutdown impasse touches Bay Area residents. Government services such as the processing of passports, access to national parks, and other services will be delayed.
During the shutdown, national parks in the Bay Area that are federal lands may close to the public. This may limit sightseeing and impair the tourism economy. In addition, residents that rely on other government services will be disrupted, albeit older services like Medicare and Social Security checks will continue to be paid.
Which Federal Employees Will Work During a Shutdown?
Some employees will continue to work even if a shutdown looming becomes reality. Federal employees in aviation and TSA security, such as air traffic controllers and TSA agents, will keep working. Other employees in law enforcement, as well as those disbursing Medicare, will also continue their duties during the shutdown.
Many other federal employees will be furloughed, and those furloughed will have to deal with the uncertainty of not receiving a paycheck.
What Can Bay Residents Perform with a Shutdown Looming?
As a shutdown looming threatens to occur, the residents of the Bay Area and the businesses in the region can plan ahead by taking the following steps.
Federal employees in the Bay Area can analyze their rights and evaluate their finances, planning with the resources available for furloughed workers.
Government contractors should identify contracts or projects that may be canceled and prepare for potential delays.
Nonprofit organizations can review their finances and prepare for reduced resources, as community pressures are likely to increase during the shutdown looming.
Residents planning to travel overseas are advised to apply for passports early and be ready for lengthy delays.
Conclusion: The Looming Shutdown
The looming shutdown is a critical issue affecting the Bay Area. Federal employees and their families will be feeling the impact of furloughs in contracts. Nonprofit organizations will also be feeling the impact with businesses facing regulatory delays.Although critical services are still available, the unexpected disruptions and uncertainty of the shutdown show the great need for both parties to reach an agreement on the government functions available. Bay Area communities are closely observing the situation. As the deadline nears, they are getting ready for what is about to happen.
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Reference Website : https://www.nbcbayarea.com/news/local/federal-government-shutdown-bay-area-impact/3956580/
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