National Perspective : LEGISLATION / The Budget Blowup

The budget battle thundering through Washington is being fought over two distinct issues. Here is a look at what they involve and how they could affect you:

MONEY FOR OPERATIONS

Called a continuing resolution, this bill would allow the government to spend money on its operations through Dec. 1 because Congress is behind on completing its budget. Congress passed a resolution but attached requirements to it, such as raising Medicare premiums. Because of the requirements, President Clinton vetoed the measure.

What Now? The government was to begin furloughing what it terms “nonessential” workers today. “Essential” workers, such as military personnel and air controllers, were to remain on the job. Meanwhile, people already eligible for welfare or other government payments shouldn’t be affected because that money is permanently appropriated. But those trying to apply for such benefits will be out of luck.

Federal Workforce

Essential: 60%

Non-essential: 40%

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What Will Be Affected

* Paychecks to government contractors

* Federal parks (parks will be operatoring on skeleton crews; campers may be asked to leave)

* Issuing of passports

* Environmental testing (clean water and hazardous waste testing)

* Processing of applications for Social Security, veterans’ and other benefits

* Workplace safety inspections

* Smithsonian museums and monuments

* Some White House staff

* Federal grants

* IRS hot line

TRAVEL TIP: Passports will still be issued for emergency situations such as funerals or medical emergencies. Be prepared for long delays. Only 20% of State Department personnel will be on the job.

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What Won’t Be Affected

* Military (though recruitment operations will be closed)

* Social Security, welfare and veterans’ checks

* Amtrak

* Coast Guard

* Postal Service

* Bureau of Prisons

* Veterans hospitals

* Immigrations and Naturalize Services

* National Weather Service

* Border Patrol

* FAA air traffic control

* IRS collections

BORROWING BILL

The government faces a second major cash squeeze in the coming days--$102 billion in payments for interest and principal. With tax revenue coming in slower than the rate of expenditures (another way of saying the government is running a deficit), the Treasury needs to borrow from new creditors to pay off old ones. But it has bumped up against the $4.9-trillion debt limit and can borrow no more. To avoid default, the Treasury has begun an emergency plan.

1) To pay interest, officials will turn to government workers’ retirement funds.

2) The Treasury uses its authority to convert Treasury securities held by the trust funds into cash. By removing these securities from the books, the Treasury lowers the debt ceiling.

3) The government can now sell more securities to the public--and thus avert a default.

4) The Treasury is required to pay back the pension funds with interest.

The Nation’s Credit Limit

The House and Senate want to add $67 billion to the debt limit and extend federal borrowing authority through Dec. 12. Without the bill, the United States would default for the first time, exceeding the debt limit.

In trillions of dollars

Jan. 1980

Debt limit: $879 billion

Debt: $829 billion

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Nov. 1995

Debt limit: $4.9 billion

Debt: $4.98 billion*

* Estimated

Fact Sheet

Facts and figures related to the budget crisis in Washington:

Share of each department expected to be affected by the shutdown:

Department of Housing and Urban Development: 99%

EPA: 96%

Social Security Administration: 93%

Interior Department: 78%

Number of times government has shut down since 1981: 9

Number of times workers were actually sent home: 4

Number of federal workers termed “nonessential”: 800,000

Number of federal workers termed “essential”: 1.3 million

Amount of interest coming due Nov. 15 and 16 that the government must cover if a debt limit is not extended: $102 billion

Number of appropriation bills that need to be passed to avoid continuing resolutions: 13

Number actually passed: 3

The President and members of Congress will continue to be paid.

Excerpt of prayer of Senate chaplain asking God to help resolve the budget crisis:

“We relinquish our desire simply to win in a contest of wills. If we all seek you and your righteousness, we know you will show us the answer. For your name’s sake and the good of America. Amen.”

CALENDAR

Nov. 13: “Continuing resolution” expires

Nov. 15: Debt limit deadline

Reseaerched by D’JAMILA SALEM / Los Angeles Times