FAA Shutdown Has a Lot of Back Story


Outsiders looking in may wonder what the problem is with the partial shutdown of the Federal Aviation Administration, with a mere $16 million in air service subsidies the main issue. The reality, however, is that there is a lot more going on than mere pocket change (by DC standards) on the line. The real issue, it appears, revolves around which party will gain pre-eminence in Congress, where Democrats control the Senate and Republicans hold the reins in the House. Thus far, 4,000 FAA employees have been furloughed and an estimated 70,000 private-sector workers have also been affected adversely.

As for the federal government, it’s losing about $30 million each day that the shutdown remains in effect, with the losses coming from foregone airline ticket taxes. The shutdown began on July 23, the day when FAA authority expired. If no move is made to open up the doors again until after Congress is back in session, the total in lost revenues could exceed $1 billion. Senator Chuck Schumer, D-New York, has noted, "This is becoming a very disturbing pattern. A small, uncompromising group, feeling the righteousness of their cause, hurts tens of thousands of innocent people and takes them hostage until they get their complete way. These debates should not be determined by which side is willing to take the most casualties."

Republicans have countered smoothly, with Rep. John Mica, R-Florida, noting, "If we’re having this fight over $16 million in subsidies, how are they going to get trillions (in spending cuts) from government? It’s not a good start. This may be emblematic of what we face getting any cuts." Mica makes a good point. Government must get smaller or the nation’s economy will pay. If Democrats will dig in over $16 million, how long will it take to pare down the federal budget to a reasonable level? With that said, late last night, the "leaders" of the country came together to stop the shutdown. In a statement, Senate Majority Leader Harry Reid noted, "I am pleased to announce that we have been able to broker a bipartisan compromise between the House and the Senate." One down, and one very big one to go. Link

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