With the Threat of Federal Government Shutdown Still Looming, Norton Introduces Bill to Permanently Prevent D.C. Government Shutdowns
WASHINGTON, D.C.—Although the House of Representatives will likely pass a short-term continuing resolution to fund the federal government and avoid a government shutdown for two months, Congresswoman Eleanor Holmes Norton (D-DC) today introduced her bill that would permanently allow the District of Columbia government to spend its local funds at the start of each fiscal year, preventing D.C. government shutdowns if Congress has not signed the District's appropriations bill into law. Norton, for the first time ever, has successfully gotten D.C. exempted from shutdowns in the current fiscal year and again for fiscal year 2016, but she insists that the shutdown exemption must be permanent to leave no doubt that a big city will never be shut down and to help increase the city's bond rating. Before Norton got the shutdown exemption for D.C. included in the past two D.C. appropriations bills, the city had to prepare shutdown contingency plans and consistent threats of shutdowns harmed the credit rating of the District government. In upgrading their ratings on the District's outstanding general obligation bonds, Standard & Poor's Rating Services and Fitch Ratings both favorably cited Norton's shutdown exemption provision. The pending fiscal year 2016 House and Senate D.C. appropriations bills would exempt D.C. from shutdown in fiscal year 2017.
"Republicans in Congress are continuing to plot how to shut down the government over funding women's health care provided by Planned Parenthood after the two-month appropriations bill is passed," Norton said. "There is never a reason for the District of Columbia and our residents to be caught up in Congress' political and financial brinkmanship over federal spending. No Member speaks up for D.C. shutdowns the way they do on ideological hot-button bills. Since I have gotten D.C. exempt from shutdowns the past two fiscal years, Congress has seen for itself the good results in the city and on Wall Street. Our permanent shutdown exemption bill has now proven itself to Congress. The merits of our permanent shutdown bill cannot be doubted."
Norton's full introductory statement follows.
Statement of Congresswoman Eleanor Holmes Norton on the Introduction of the District of Columbia Government Shutdown Avoidance Act of 2015
September 28, 2015
Mr. Speaker, although it appears the federal government will narrowly avert a shutdown on October 1, the second shutdown since 2013, I rise today to offer the District of Columbia Government Shutdown Avoidance Act of 2015 to permanently authorize the District to spend its local funds during a federal shutdown and therefore to remain open during a shutdown. Congress has recently exempted D.C. from shutdowns on an annual basis, and this bill simply makes those exemptions permanent.
The District has an $8 billion local budget, which is comprised entirely of local revenue sources, such as taxes and fees. The District should be free, as every state and city is, to spend its own local funds during a federal shutdown. The shutdowns involve congressional disputes about federal funding, but the federal government does not provide a dollar of D.C.'s local budget. The D.C. government should never have to wonder whether it will be part of a federal shutdown, have to prepare in case of a shutdown, or even have to ask Congress to be exempted annually. No Member of the House or Senate has spoken up in favor of shutting down the D.C. government, and I do not believe any Member wants to shut down the D.C. government and bring a large, complicated city to its knees over purely federal matters in which the city is not involved.
There is unprecedented bipartisan and bicameral support, as well as support from the Obama administration, for preventing D.C. shutdowns. In fiscal years 2014 and 2015, for the first time ever, Congress exempted D.C. from shutdowns for an entire fiscal year (fiscal years 2015 and 2016, respectively). The pending House and Senate fiscal year 2016 D.C. Appropriations bills each exempt D.C. from shutdowns for fiscal year 2017.
Among the most important reasons for a permanent shutdown exemption would be the significant financial and operational benefits for the District. If the District shuts down, it could default under certain financing agreements and leases. The financial importance of eliminating shutdown threats to the District were definitively shown recently. The three leading bond rating agencies have cited the annual shutdown exemption as a positive credit factor in upgrading or maintaining their ratings on the District's bonds. The city's partners, Wall Street and vendors alike can charge a risk premium for the uncertainty created by shutdown threats. A permanent shutdown exemption would undoubtedly improve D.C.'s creditworthiness even more.
The 650,000 D.C. residents do not suffer alone when vital city services cease during a shutdown. Federal officials, federal buildings, foreign embassies and dignitaries, businesses and tourists rely daily on the city's services as well. Successive continuing resolutions (CRs) do not help much. Not only do successive CRs make it difficult for the city to plan its activities for the year, they increase the city's costs of doing business. Shutdown threats force the District to invest time and money preparing contingency shutdown plans.
Although federal shutdowns have shut down the District in the past, the District did not shut down during the 2013 federal shutdown, only because D.C. was able to use previously appropriated contingency funds to remain open. However, the District had to severely ration its payments, risking its credit standing, and if the federal shutdown had continued for much longer, the District would have exhausted those funds and shut down, too.
It is clear that Congress does not intend such risks and consequences to the District. Congress loses nothing by allowing the District, which submits a balanced budget, almost always with surpluses, each year, to remain open.
I urge my colleagues to support this bill.