OMB Braces For Shutdown

ranklin Raines, director of the Office of Management and Budget, circulated a memo to federal department heads yesterday with instructions to prepare for a possible government shutdown next week.

That prompted Republicans to rush a radio commercial into production blaming Democrats in advance for any interruption in government services when the fiscal year ends, the Associated Press reported.

The ad declares that Republicans are "working with the White House on a safety net spending bill, helping hurricane victims and arming our troops." It adds, "But congressional Democrats are playing politics, hoping a shutdown will hurt Republicans."

One GOP official said the spot would begin airing in a few areas of the country this morning. It is expected to air in the Washington area and the home states of Senate Minority Leader Tom Daschle, D-S.D., and House Minority Leader Dick Gephardt, D-Mo.

Daschle said the GOP commercial was "about as counterproductive a thing as I can think of ... You can tell how frightened [the Republicans] are that people will remember" last winter's shutdown, he said. "They'll remember that it was Republicans who made it happen last winter."

In his memo, Raines said the administration expects the remaining FY97 appropriations bills will be signed by Monday. "If, however, neither the individual bills nor an omnibus measure is enacted by Oct. 1, departments and agencies not covered by enacted appropriations bills will experience a lapse in legal authority to enter into obligations and will be forced to implement their shutdown plans," the memo states.

The Raines memo said all employees should report for work next Tuesday, when the new fiscal year begins, and that the OMB will advise agencies heads "whether to implement your shutdown plan."

Only just five of the 13 FY 97 appropriations bills have been signed into law by President Clinton: Military Construction, Legislative Branch, Agriculture, District of Columbia and VA-HUD. In addition, two of the measures have been sent to the White House: Energy and Water and Transportation.

Congress is debating an omnibus appropriations package that is expected to contain six appropriations measures: Commerce-Justice-State, Interior, Labor- HHS, Treasury-Postal, Defense and Foreign Operations.

A White House official in an interview Wednesday night said the administration is working to avoid a shutdown, but "we have to be ready" in case all of the FY97 appropriations bills are not completed.

The White House official acknowledged comments by GOP leaders that they want to avoid a shutdown, while adding, "We would be irresponsible not to plan for a disruption that, under the worst scenario, could be a few days away."