EXPERTS ADVISORY
University of Michigan researchers are available to share their insights on a federal government shutdown at the end of the day Tuesday, unless lawmakers break the impasse and make a deal before then.
Stephanie Leiser is a lecturer at the Ford School of Public Policy and director of the Center for Local, State, and Urban Policy.
“The big picture is that federal, state and local budgets are tightly intertwined through hundreds of different programs, so federal budget choices absolutely have a direct impact on state and local governments,” she said. “Most states get around 30%-40% of their revenues from the federal government, and local governments are often even more reliant on transfers from state and federal sources.
“While everyone waits to see how the politics will play out and who the biggest losers and winners will be, we also need to remember that the uncertainty is already costing us in terms of delayed investment/spending, higher borrowing costs and depletion of reserves. Everyone is spending all of their time spinning scenarios and worrying about the next few weeks and months instead of planning for the future.”
Donald Moynihan is the J. Ira and Nicki Harris Family Professor of Public Policy at the Ford School of Public Policy and co-director of the Better Government Lab, which looks for technology and other types of interventions to help governments improve access to the social safety net.
“Government shutdowns undermine economic activity, but also weaken the government’s long-term capacity to perform its core tasks,” he said. “Shutdowns are damaging at the best of times. Coming on top of months of employee cuts and disruption, a shutdown will be even more damaging than usual now.
“The threat to fire federal employees because politicians cannot pass a budget is unprecedented, and will further erode the capacity of the federal government to serve the public.”
The Office of the Vice President for Research at the University of Michigan is providing guidance to faculty, researchers and staff in case of a shutdown. Information on handling situations that may arise should funding cease are published at: research.umich.edu/government-shutdown
According to the office, which collaborates with internal and external partners to catalyze, support and safeguard research and scholarship across the university in dedication to research that serves the world:
“A federal government shutdown can influence university research operations, though its implications on U-M research and creative practice will depend largely on the length of a shutdown and the corresponding guidance provided by the affected federal agencies … Faculty working on federally sponsored projects that are already ongoing are not expected to experience major issues during a shutdown. That said, federal agencies cannot issue new grants or contracts, or renew existing projects, during a shutdown. Agencies also will not be able to provide assistance during a shutdown. As a result, government employees at the agencies will not be available to answer phone calls, respond to emails or update informational resources.”
This story was written by Jeff Karoub, Michigan News, U-M Office of the Vice President for Communications.
