CNN 2011-04-09

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…the U.S. federal budget. Actually, we're talking about two budgets today. The first one: the government's budget for 2011. There isn't one. At least, not the kind of formal budget you'd normally have. What's been happening is that Congress has passed short-term measures that keep government programs and offices running. But they keep coming up against the deadlines for those short-term measures. There's another one set to happen this Friday. That's why congressional leaders from both parties, along with President Obama, are trying to come up with some sort of compromise. They're looking at ways to make cuts to government spending and come up with a deal that would last until the next budget starts. So far, no deal. If they don't meet that Friday deadline, we could be looking at a government shutdown. Ali Velshi explains what would and wouldn't change if that happens.

We are hearing a lot about a possible government shutdown if Congress cannot get a compromised deal on a budget by Friday. This has not happened in 15 years.

Let's take a look at what happens if there is a shutdown. Last time they did it, the Feds closed 368 national parks, all national monuments and museums. Passport applications were stalled. That's an important one. And cleanup work stopped at 609 toxic¹ waste sites.

Now, U.S. troops, including those fighting in Iraq and Afghanistan, could see their paychecks interrupted. We're hoping that's not going to be the case.

What else happens? Well, these things stay; these things continue running. Essential services. For instance, air traffic control, we can't shut that down. The National Security System would stay online. Also, who else stays? Well, federal workers who provide medical care, handle hazardous² waste, inspect food, deal with border patrol, prison guards who guard inmates³, and those who work in power distribution, all of them stay on the job, as do federal employees who protect our financial system.

Now, during the two government shutdowns in the 1990s, more than a million workers, million federal workers, were sent home. However, the government has legal authority to continue mailing social security checks, so they kept coming out there. They would have the legal authority to do so again, but your tax returns may be in jeopardy⁴ if you have not already filed. So, those are the kind of things that are going to affect you if a deal is not reached.

Remember, two things can happen. They can reach a deal, or they can not reach a deal but they can extend the time that they give themselves for another week, two weeks or three weeks. We are going to stay on top of that for you.