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Public Statements - Government Shutdown Looks Imminent

News Article

Location: West Lafayette, IN

By Kelly Roberts

"I would say come midnight we'll have a shut down," Purdue Economics Professor Jerry Lynch said Monday afternoon.

Lynch said the United States Senate's rejection of The House of Representatives' budget bill Monday makes Tuesday's shutdown almost guaranteed.

The bill was not expected to pass the Senate. It would fund the government until December if The Affordable Care Act is defunded, and a tax on medical devices is repealed.

U.S. Senator Dan Coats was in favor of the bill.

"I think the house sent over a very reasonable proposal which was shot down, once again, by [Senate Majority Leader] Harry Reid," Coats said. "We're not going to solve this problem unless the president starts involving himself in the negotiations."

In a statement, U.S. Senator Joe Donnelly said;
"Congress needs to do its job, stop toying with the country's economy, and show the American people we are capable of working together. It is long past time to reach an agreement and move onto the important business of creating jobs for the many Hoosiers-and Americans across the country-who need them."

If a shutdown happens different government agencies will stop or work with less staff.

Lynch said social security and unemployment checks will be sent out. Mail services will continue. Boarder patrol, airport security, air-traffic controllers, meat inspections, and active-duty military members will also remain the same.

Lynch said four agencies are likely to be affected the most.

"The civilians in the defense industry there are about 800,000, half of them could get laid off," Lynch said. "The EPA is going to be impacted. The Department of Justice, maybe 15-20 percent of that, and the National Labor Relations Board."

The shutdown will happen the same day the ACA Health Insurance Marketplaces open. Lynch said they are expected to open even with a shutdown.

Lynch said it would take a while for economic affects of the shutdown to be felt in Tippecanoe County.

"To a large extent [the economic impact] is going to start regionally," Lynch said. "Washington D.C. is going to be impacted by that. Then, you look at big defense areas like the Norfolk area in Virginia."

"It's a fragile economy and this throws a curve ball into all of that." Coats said.

Coats expects the House will send another bill over to the Senate before midnight.

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