2011 Fiscal Year Budget

A shutdown of our federal Government was averted by Congress earlier this month, when they passed a two-week extension before voting on the 2011 fiscal year budget, yet again. This “continuing resolution” was passed just two days before the funding of government services was scheduled to come to a halt. Congress passed the extension, along with $4 billion dollars in CUTS to current federal spending, to buy themselves some extra time to develop a long-term solution, and hopefully decide on a budget to fund the government throughout the rest of the fiscal year. The new deadline to reach an agreement is this Friday, March 18th.

MetLife Mature Market Institute, in conjunction with the Scripps Gerontology Center at Miami University, conducted a national study that indentified the “daunting dozen” challenges associated with obtaining security in retirement. They also compiled a list of the “best-case strategies” for planning and preparing for retirement success. The study concluded that planning for the “unexpected” is the KEY to financial security in retirement, and that “preemptive planners”, or those who are prepared for the unanticipated events in life, are the ones who are the MOST successful in retirement.

Lawmakers have still NOT agreed on the 2011 fiscal year budget, although we’re MORE than six months into the fiscal year. To compound this dilemma, the president has already sent lawmakers his 2012 fiscal year budget. This “continuing resolution,” as it’s called, or continuation of the 2010 budget, represents Congress’ inability to come to a majority agreement on a fiscal plan for the country. This is the FIRST time in modern U.S. history that a fiscal year has begun with NO federal spending authority in place.

Until Congress comes to a resolution on the nation’s short and long-term financial challenges, and agrees on a budget, the federal government is still at risk of temporarily shutting down. The stopgap bill signed by President Obama provided just an additional two weeks of government funding, in hopes that lawmakers will FINALLY decide on a financial plan to carry the country through September 2011, which is the end of the government’s fiscal year. If NO agreement is made, the federal government could either a) shut down and leave “non-essential” employees and contractors temporarily out of work, b) pass yet another short-term extension, while continuing to debate the longer-term deal, or c) pass the long-term resolution to take the federal government through the end of the fiscal year. Unfortunately, for the American public, democratic and republican leaders are at odds on HOW to close the gap between federal REVENUE and federal SPENDING, which is projected to result in ANOTHER deficit this year, of $1.6 trillion dollars to the already record debt level of $14.2 trillion. If NO agreement is made, as of Saturday, March 19th, the government will be OUT of money and forced to CEASE non-essential operations.