How would a government shutdown affect Utah?


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SALT LAKE CITY -- The White House and Congressional leaders are trying to hammer out a budget agreement in Washington, but the latest word is there's still no deal.

The negotiations are happening just one day before the government will run out of funding and be forced to shut down.

Congress has until midnight Friday to find a resolution. Republicans have passed a measure that would keep the government operating for another week, but Senate Democrats oppose it and Pres. Barack Obama says he'll veto it if it reaches his desk.

How will Utah be affected?

A government shutdown is creating a lot of concern around the country. For many in Utah the question is, How will this affect us locally?

By the numbers
  • There are 37,600 federal employees in Utah
  • 40% of those employees could be furloughed
  • Their earnings make up 5% of all wages in Utah
  • Federal workers make up 3.2% of all workers in the state
  • Their federal wages total $6.2 million a day and $2.28 billion a year for the local economy

The short answer is, that it depends on how long the shutdown lasts. It may start as inconvenience but evolve into hardship if it drags on.

The biggest effect of a government shutdown would be the uncertainty it would create -- in the short term, for the nearly 40,000 federal employees in Utah who depend on a government paycheck. In the long term, practically everyone would feel the economic impact.

No money means furloughs -- or, temporary layoffs -- all across the state. Signature Utah attractions at national parks and recreation areas would close, which means no tourism dollars in the meantime. There wouldn't be anyone at offices like the Social Security Administration, where people depend on income and benefits. During tax season, people are looking forward to refunds. Those too might be delayed, as would passport requests.

Utah's military presence would be hit: Thousands of support personnel at Hill Air Force Base and the Army Depot in Tooele would be off the job. The same goes for the Utah National Guard, where weekend trainings would be on hold. People considered "essential to the mission" and serving overseas, however, would be given priority and keep working on the clock.

"If they're serving overseas there may be what they call a hiccup in their pay," said Hank McIntire with the Utah National Guard. "It may be delayed, but they will get their pay."

Everyone loses in a shutdown

There are 37,600 federal workers in Utah. That's 3.2 percent of all workers in the state, but their earnings represent 5 percent of all wages. That brings in $6.2 million a day in wages and $2.28 billion a year to the Utah economy.

If the shutdown happens, as taxpayers, we'll all lose.

Shutdown: Across America

"It will cost the government some money," said former Senator Bob Bennett. "Not something we want to do right now when we're trying to be as frugal as we possibly can be."

There can be political fallout, too. President Bill Clinton's political stock rose dramatically after the shutdown was resolved.

"He came out of it with an image of a true national leader, and I am one of those who agree with the pundits who say that was the beginning of the political resurrection of Bill Clinton," Bennett said.

The senior economist for workforce services told KSL that statewide, a shutdown would not have a great impact on the economy. But for federal employees who count on those paychecks, it could mean real trouble. Again, the consequences all depend on how long it lasts.

Other shutdowns in recent years

In Bennett's years in office he has seen a number of government shutdowns. Since 1981 the federal government shut down five times, but only the last one impacted anyone other than federal employees. That one in November and December of 1995 had broader impact economically and politically.

Of the state's 32,000 federal workers at the time, 40 percent of them found out they were non-essential and were furloughed. None got paid.

As for services, taxpayers were turned away by the IRS. Our five national parks and seven national monuments closed. Veterans and the unemployed could not file new claims.

Trickledown effects could hurt small towns

A shutdown would not only affect Utah's national parks, it could be a huge blow to the surrounding communities. In Springdale just outside Zion National Park, 85 percent of the town's budget is based on sales tax revenue. If tourists stop coming because the park is shut down, Springdale could be in trouble.

"I'd have to say this will have a very serious impact on us," said Dean Cook, the general manager of the Best Western Zion Park Inn. "This is the time when our businesses make their money and get through the winter, which tends to be a little slower."

Visitors to Zion book hotel rooms, shop and eat at Springdale's restaurants. Much of that anticipated business will vanish if the park closes. Cook says the trickledown effect would be huge.

Recent Government Shutdowns

"We have reduced occupancy, then we have reduced needs for goods. Witch effects all of our vendors, at this time of year, this is where they're making their season, we're going to be closing them down."

The state Tourism Board says Utah still has plenty to offer.

"We want to remind folks at the same time that in addition to the national parks, there are still plenty of recreation opportunities in 43 state parks and on the other public lands in the state," said John Holland with the board.

Anger toward government rising

Whether or not they are personally affected, the threat of a shutdown is creating frustration with government all across the country and in Utah.

"They've been in there too long, and they're not looking out for the little man," said Salt Lake City resident DeWaye Carli.

Randy Keepers of Magna echoed that sentiment. "I don't feel like they have my interest in mind, that they don't have the Average Joe's interest in mind."

"If they'd put the political stuff aside and actually work to better the country, it would work," said David Hanna of Salt Lake City.

Bennett said these frustrations are what his constituents were telling him at the time: "Just work it out. Why can't you get along? Why can't you people cooperate?" Bennett said.

The frustration about the budget impasse will only grow if a shutdown happens, and goes on for a while.

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Story written by Richard Piatt, Jed Boal amd Keith McCord.

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