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University of Colorado Law School

State and Local Government Law

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Default budget

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Preventing Government Shutdowns: Designing Default Rules For Budgets, David Scott Louk, David Gamage Jan 2015

Preventing Government Shutdowns: Designing Default Rules For Budgets, David Scott Louk, David Gamage

University of Colorado Law Review

In nearly every area of law and governance, default policies exist when lawmakers cannot pass new legislation-typically the status quo simply remains in effect. To its detriment, United States budget making at both the state and federal levels lacks effective defaults. If a new budget isn't passed by year end, there is no budget, and the government shuts down. The lack of defaults, coupled with a dysfunctional era of budgetary politics, has led to a number of recent high profile and costly government shutdowns at the state and federal levels. To date, legal scholarship has failed to address both the …