Fed Workers Prep for Budget Delays

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Ybsybs
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Fed Workers Prep for Budget Delays

Post by Ybsybs »

About a year ago Congress and the President had an extended budget fight that resulted in quite a few federal workers not getting paychecks on time. Right now there's a continuing resolution through November 21. It could be that there will be more CRs approved and then a full budget passed without any major issues. But it also might not.

What are you doing to prep or would advise me to do to prep?

We have a 12 month emergency fund, so in one sense it's a non issue. In others, it's not so simple.

The kids' daycare is on a government facility and will close if the facility is closed. The staff who work there are contractors who won't get backpay unless we the parents choose to give it to them. We will lose our good staff if we don't pay them, so we are going to pay them.

For us, only one parent is a fed worker and may be required to work (essential personnel) even though pay wouldn't come until later and the regular childcare will be gone. We are collecting contact info from other parents to enable shared babysitting of our kids with daycare staff members who are open to that.

Some banks (but not the one we use) have offered 0% interest advances on fed worker pay if you direct deposit your fed pay with them. We are considering changing banks to one that has had that offer in the past. There of course aren't guarantees that a bank or credit union would do again what they did last time.
runner3081
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Re: Fed Workers Prep for Budget Delays

Post by runner3081 »

Isn't this off limits to discuss here?
UpperNwGuy
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Re: Fed Workers Prep for Budget Delays

Post by UpperNwGuy »

I would do whatever you did during the last shutdown, assuming it worked for you.

I think this shutdown, if it happens, will be shorter than the last one because the next major elections are only a year away, and voters hold grudges.
jpelder
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Re: Fed Workers Prep for Budget Delays

Post by jpelder »

runner3081 wrote: Fri Oct 18, 2019 10:05 am Isn't this off limits to discuss here?
It could get that way quickly.

It sounds like you're prepared with emergency funds ready to go. That's probably about all that you can do. It's hard to know what way political winds will turn, and we can't talk about it here (understandably). It also calls into question the assumption that government work is more stable than private sector.
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dm200
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Re: Fed Workers Prep for Budget Delays

Post by dm200 »

Ybsybs wrote: Fri Oct 18, 2019 10:03 am About a year ago Congress and the President had an extended budget fight that resulted in quite a few federal workers not getting paychecks on time. Right now there's a continuing resolution through November 21. It could be that there will be more CRs approved and then a full budget passed without any major issues. But it also might not.
What are you doing to prep or would advise me to do to prep?
We have a 12 month emergency fund, so in one sense it's a non issue. In others, it's not so simple.
The kids' daycare is on a government facility and will close if the facility is closed. The staff who work there are contractors who won't get backpay unless we the parents choose to give it to them. We will lose our good staff if we don't pay them, so we are going to pay them.
For us, only one parent is a fed worker and may be required to work (essential personnel) even though pay wouldn't come until later and the regular childcare will be gone. We are collecting contact info from other parents to enable shared babysitting of our kids with daycare staff members who are open to that.
Some banks (but not the one we use) have offered 0% interest advances on fed worker pay if you direct deposit your fed pay with them. We are considering changing banks to one that has had that offer in the past. There of course aren't guarantees that a bank or credit union would do again what they did last time.
The issue to focus on here is "financial" not "political"

These federal shutdowns have happened - so the risk is real (low in my opinion, but not zero)

1. As far as I know - in all of the shutdowns - federal employees have needed up receiving their full pay and benefits. So, I think the financial risks are fairly short term.

2. Yes - this is a good use of your emergency fund. Just replenish it when the shutdown ends

3. I know most credit unions (especially in areas like mine - where there are a lot of federal employees and contractors) offer loans at low (or zero) interest rates AND defer many/most loan payments

4. Yes - in some cases, contractors were paid - and in others - they were not. In my opinion, the real financial losers were businesses (and employees) that served federal employees (such as restaurants), hotels, etc.

5. In your case - seems like childcare would/be an issue - although "regular" childcare providers may have a short term loss of customers - so maybe check with such providers - especially neighborhood home providers

6. The other "real losers" financially are the taxpayers AND folks who use federal facilities.
supersharpie
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Re: Fed Workers Prep for Budget Delays

Post by supersharpie »

OP - we are heading into a presidential election year. There is essentially no risk of a shutdown over the next 13 months. The politicians aren’t going to want to piss off millions of voters heading into the elections.
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oldcomputerguy
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Re: Fed Workers Prep for Budget Delays

Post by oldcomputerguy »

The OP’s question is asking about what steps to take to prep for possible government budget actions, which is a topic which prohibited by forum policy (proposed legislation). This topic is locked.
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Re: Fed Workers Prep for Budget Delays

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After further moderator review, this topic is unlocked. Please try to keep the discussion focused on actionable ideas for preparing for personal budget difficulties, and not on the issue of which direction Congressional action will take.
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Big Dog
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Re: Fed Workers Prep for Budget Delays

Post by Big Dog »

I would look into a credit union that serves your federal agency, or if you have a military history, one of those CU's that serve your branch; also, one preferably with a DC office. Open a savings account now, even with a small deposit. That way, you'll be a customer if the work doors do get locked.
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Re: Fed Workers Prep for Budget Delays

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Cobra Commander
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Re: Fed Workers Prep for Budget Delays

Post by Cobra Commander »

I think the major concern for you will be childcare arrangements if you are deemed essential. Perhaps one of the trusted daycare workers can watch your children at your house.
IMO
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Re: Fed Workers Prep for Budget Delays

Post by IMO »

This is an honest answer. If these pointless events were to happen in the future:

I would prep by planning on taking my vacation during this time, just avoiding most National Parks. Every federal employee will get paid based on the numerous examples of the past.

Taking your vacation during a shutdown saves your leave. That's actually worth real money in the federal system. You'll eventually get your pay even though your were not required to work (unless you designated an essential employee). If you are an essential employee, realize you may have any planned leave cancelled. VA employees are exempt from the shutdown (and there may be other organizations) so is probably worthwhile to note that it is not all federal workers who get a free vacation.

If you are really living paycheck to paycheck, stop doing that and have at least an emergency fund for at least a month. Have credit cards that aren't maxed out so you can go to the grocery store and charge groceries. Credit cards if paid off have about a month delay between the charge and when you have to actually pay your bill.

For contractors, I'd say plan ahead with your emergency fund. Typically contractors are paid a higher rate so use that to your advantage.
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Nestegg_User
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Re: Fed Workers Prep for Budget Delays

Post by Nestegg_User »

IMO wrote: Sat Oct 19, 2019 1:10 am This is an honest answer. If these pointless events were to happen in the future:

I would prep by planning on taking my vacation during this time,there is NO leave granted (of any type) during a furlough just avoiding most National Parks. Every federal employee will get paid based on the numerous examples of the past.

Taking your vacation during a shutdown saves your leave.*** - all leave is cancelled for "essential" as they must show up (otherwise could be deemed job abandonment); so-called "non-essential" also have any form of leave cancelled {employee doesn't get to choose their status} That's actually worth real money in the federal system. You'll eventually get your pay even though your were not required to work (unless you designated an essential employee). If you are an essential employee, realize you may have any planned leave cancelled. VA employees are exempt from the shutdown (and there may be other organizations) so is probably worthwhile to note that it is not all federal workers who get a free vacation.

If you are really living paycheck to paycheck, stop doing that and have at least an emergency fund for at least a month. Have credit cards that aren't maxed out so you can go to the grocery store and charge groceries. Credit cards if paid off have about a month delay between the charge and when you have to actually pay your bill.

For contractors, I'd say plan ahead with your emergency fund. Typically contractors are paid a higher rate so use that to your advantage.
ETA: in the past, feds could notify creditors of the furlough...and some did defer payments (with some interest, usually) until payments resumed... although housing and insurance was rarely deferred. As noted by others, it was often credit unions with substantial fed membership that crafted deferments for such things as car payments that they held the paper on.
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whodidntante
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Re: Fed Workers Prep for Budget Delays

Post by whodidntante »

I'm not a Fed, but I know some Feds had to wait a long time to get backpay after the last budget impasse was resolved. Still, with a 12-month emergency fund, I don't think you have any concerns. You're absolutely prepared financially. Stop worrying. If you think going without pay for more than 12 months is a realistic possibility, I would try to find a more stable employer.
Mr. Rumples
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Re: Fed Workers Prep for Budget Delays

Post by Mr. Rumples »

In 2001, the Commonwealth of Virginia ran out of money before the end on the fiscal year which runs from July through June. Thus, the pay for July 2001 which was to have been deposited on June 29 was not deposited into accounts until July 9. One can imagine the fiasco and the extra fees incurred by state employees.

We had little over a week's notice. The only thing we could do to prepare was to ensure there was enough money in the bank to cover all the ACH's. As I recall, from my employees' experiences, some lenders were understanding, some were not. Some waived fees, some didn't. Of course, grace periods did help but it was a lot of time spent in cleaning things up.
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rkhusky
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Re: Fed Workers Prep for Budget Delays

Post by rkhusky »

If you decide to take vacation, make sure that it is somewhere that you can get back home quickly, as you will be expected to be at work as soon as the shutdown is ended. You might have a day or two notification.
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dm200
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Re: Fed Workers Prep for Budget Delays

Post by dm200 »

oldcomputerguy wrote: Fri Oct 18, 2019 6:27 pm After further moderator review, this topic is unlocked. Please try to keep the discussion focused on actionable ideas for preparing for personal budget difficulties, and not on the issue of which direction Congressional action will take.
Yes!

Financially, in this area of a large federal government presence - any kind of shutdown hurts a lot of folks - so, being as financially prepared as possible is a very good idea.
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dm200
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Re: Fed Workers Prep for Budget Delays

Post by dm200 »

rkhusky wrote: Sat Oct 19, 2019 6:24 am If you decide to take vacation, make sure that it is somewhere that you can get back home quickly, as you will be expected to be at work as soon as the shutdown is ended. You might have a day or two notification.
Yes - important aspect of being fully prepared!!
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Ybsybs
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Re: Fed Workers Prep for Budget Delays

Post by Ybsybs »

Thanks for the feedback.

It sounds like I'm not missing anything obvious. Thanks again.
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