[Busmgrs] Possible Federal Government Shutdown

[WILTFONG Michael]

To: Superintendents, Principals, and Business Managers
Re: Possible Federal Government Shutdown

As you may be aware, the federal fiscal year ends September 30. Congress has yet to reach agreement on how to fund the federal government in the new fiscal year, starting October 1. The House and Senate are working on a continuing resolution (CR) to fund the federal government through December 15. If an agreement is not finalized by October 1, there will be a government shutdown (at least temporarily) which would impact the availability of some federal services and funds. The degree of impact is directly related to the length of the shutdown.

At this time we do not know what the immediate impact would be on education-related funding.  The latest information we have from the federal level is that many of our major federal grants would be unaffected as they are "forward-funded" programs - i.e., a portion of their funding has already been allocated.  Some other programs do not receive advance appropriations. ODE is still looking into whether we can pay for non-forward funded programs from existing state funds in the event of a government shutdown and then receive reimbursement once the federal funds are again available.  However, if state funds cannot be reimbursed for such payments, it may be necessary for ODE to ask districts to hold reimbursement claims for certain federal expenditures in the event of a shutdown.

We will let you know more as additional information is provided to us.  It is our sincere hope that there will be no delay in your reimbursements and we are working with our federal partners to identify the best way to move forward should a government shutdown occur.

Thank you for your patience in this matter and we will share additional details as they become available.

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