There is a bit of a tension in place. The date the Secretary of the Treasury is using as the tentative target for when the federal government runs out of money is June 5th. Ohio Capitol Journal reported this morning that the Congressional Budget Office expects cash to run out between July and September. There are some unknowns that we frankly have to wait on yet.
Collections are going to be key. If federal tax revenues go haywire then we might not make it to the optimistic projections of the CBO. With all the layoffs that have been announced there have basically been many, many streams of tax revenue cut off from Treasury as withholdings will not longer be paid forward. As an entire industry has been engaged in retrenchment we’ll be seeing folks not necessarily back in the workforce actively all that quickly. That will impact collections. More people wanting “collections alternatives” taken on their tax accounts would also starve the federal beast of revenues and times of layoffs like these are typically when such requests proliferate.
Yeah, I have to make some financial moves. I’m looking at some pain coming.