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JewishJournal.com

October 1, 2013

Shutdown may affect Jewish social services

http://www.jewishjournal.com/los_angeles/article/shutdown_may_affect_jewish_social_services

The U.S. Capitol on Oct. 1. Photo by Larry Downing/Reuters

The U.S. Capitol on Oct. 1. Photo by Larry Downing/Reuters

Congress’ failure to authorize discretionary spending for the new fiscal year won’t only impact about 800,000 federal workers or the Americans looking to visit national parks. It may also affect local Jewish social service organizations that rely in part on federal funding. 

That, too, though, is uncertain.

“We don’t know what is going to happen,” Paul Castro, CEO of Jewish Family Service of Los Angeles (JFS), said just hours after the shutdown began. “We spent the morning trying to communicate with our funders to find out what they know.”

The funders Castro spoke with are the state and local government entities that JFS relies upon to provide some services such as meals and transportation programs for seniors. Castro said that if these entities requested funds from the federal government before Oct. 1 — the day the shutdown took effect — some of JFS’ at-risk programs could run for a few more weeks without interruption. Ultimately, though, JFS won’t know for at least a few days exactly how this will play out if Congress doesn’t reach an agreement quickly.

JFS’ annual budget is $30 million, and $5.55 million of that comes — directly and indirectly — from the federal government.

Jay Sanderson, president and CEO of The Jewish Federation of Greater Los Angeles, echoed Castro’s concerns. 

“With the shutdown, the cash flows of our most important social service agencies are at risk,” he said. “If this goes on for an extended period of time, it will definitely impact our social service agencies.”

As for Jewish Vocational Services, whose goal is to help people overcome barriers to employment, it issued a public statement that “programs and services remain fully operational with regularly scheduled hours.”

The last time Democrats and Republicans could not agree on a spending resolution to fund parts of the federal government was over the budget for the 1996 fiscal year, when President Bill Clinton and a Republican Congress clashed over spending levels, largely over Medicare, shutting down parts of the government for 26 days.

This time around, the issue preventing an agreement is again a major health care initiative, the Affordable Care Act (ACA), President Barack Obama’s signature piece of legislation that was passed in 2010.

Republicans in the House of Representatives are attempting to tie any new spending bill to a one-year delay for parts of the bill and a requirement that Congressional members and their staffers must purchase insurance on the ACA’s new health insurance exchanges, which opened on Oct. 1

Despite the shutdown, much of the federal government will continue to operate as normal, including programs like Social Security, Medicare, Medicaid and the military.

Even if Congress reaches an agreement in the coming days or weeks, Castro is concerned about a future potential conflict that could again pose funding problems for local Jewish agencies. Before Oct. 17, when the federal government is predicted to eclipse the “debt ceiling” (the level of debt Congress has authorized the government to accumulate), Democrats and Republicans will either have to raise the debt ceiling or risk many spending promises not being fulfilled.

“Even in resolution we know that is only going to be for a few weeks,” Castro said. 

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