A continuing resolution (CR) is a temporary measure to keep government services running while appropriations laws are drafted. Budget negotiations can become complex, and ongoing resolutions are common. Failure to pass a resolution could be catastrophic, as government agencies provide vital services. In 1995, the Republican Party’s refusal to cooperate resulted in a temporary shutdown of many government agencies.
A continuing resolution (CR) is an interim measure designed to keep vital government services running while a legislator drafts appropriations laws, which formally designate funding to various agencies. The practice of making ongoing resolutions is quite common, as budgets can become extremely complex and some political parties have been known to deliberately hold back budget negotiations to force an issue, potentially threatening important government services. Depending on where you live, you may find the term “continuing resolution” in the news a lot around the end of your government’s fiscal year.
In the United States, the budget year runs from October 1 of one year to November 30 of the following year. Other nations have different fiscal years, depending on how their budgets and governments are organized. Each year, the legislature must agree on appropriations, acts that designate various amounts of funds to different government agencies. Appropriations laws allow government agencies to spend their funds; without an appropriations bill, a government agency is out of money and will quickly cease functioning.
Appropriation bills, however, are rarely simple. Lawmakers wrangle over the details, and many tried to stuff pet projects into appropriation bills, thereby dragging out the process even more. Consequently, it is normal for the end of the financial year to be reached without the transfer of appropriations. This is where continuous resolution comes into play; provides several months of funding for vital government agencies. Funding in an ongoing resolution is typically similar to what the agency received the previous year, allowing the agencies to continue operating.
For a resolution to continue to pass, both houses must pass, if the legislature is bicameral. The head of state also generally has to sign. Failure to pass and sign such a resolution could be catastrophic, as government agencies provide services such as health care, education, food stamps, road maintenance, law enforcement, and so on. Most people agree that these services are vital and that a service outage could get very ugly.
Due to the consequences of funding disruptions, most governments are generally willing to cooperate on continued resolutions. In 1995, the Republican Party in the United States, led by Newt Gingrich, decided not to cooperate, resulting in the temporary closure of many government agencies. Chaos erupted in Washington as moderates tried to negotiate while extremists blamed each other for the situation. Some people have suggested that the Republican-led budget chaos may have contributed to the results of the 1996 US general election, as many voters were very angry about the temporary government shutdown.
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