[DEOC] Federal Update - Government Funding, Shutdown Risk, and Outlook for Resolution

Wed Sep 20 11:11:45 PDT 2023

Thank you Sophia. We will be discussing at our next Cabinet meeting.

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From: DEOC <deoc-bounces at lists.ctc.edu> On Behalf Of Sophia Agtarap via DEOC
Sent: Wednesday, September 20, 2023 10:26 AM
To: DEOC <deoc at lists.ctc.edu>
Cc: Sophia Agtarap <sagtarap at sbctc.edu>
Subject: [DEOC] Fw: Federal Update - Government Funding, Shutdown Risk, and Outlook for Resolution

FYI, DEOC. This message has been sent by our ED, Paul Francis to WACTC and to the State Board members.

[Compass]
  Sophia Kristina R. Agtarap (she/siya)

  Director, Equity, Diversity, and Inclusion

  Washington State Board for Community and Technical Colleges

[cid:image012.png at 01D9EBB3.3C24AC50]<https://outlook.office.com/bookwithme/user/428a9a0a3cb14afe82036360d2d894a8@sbctc.edu?anonymous&ep=signature>
Book time to meet with me<https://outlook.office.com/bookwithme/user/428a9a0a3cb14afe82036360d2d894a8@sbctc.edu?anonymous&ep=signature>

From: Wilson, Morgan (GOV) <Morgan.Wilson at gov.wa.gov<mailto:Morgan.Wilson at gov.wa.gov>>
Sent: Wednesday, September 20, 2023 9:35 AM
To: Batiste, John (WSP) <John.Batiste at wsp.wa.gov<mailto:John.Batiste at wsp.wa.gov>>; Birch, Sue (HCA) <sue.birch at hca.wa.gov<mailto:sue.birch at hca.wa.gov>>; Blackmore, Laura (PSP) <laura.blackmore at psp.wa.gov<mailto:laura.blackmore at psp.wa.gov>>; Clark, Charlie E (DFI) <charles.clark at dfi.wa.gov<mailto:charles.clark at dfi.wa.gov>>; Danner, Dave (UTC) <dave.danner at utc.wa.gov<mailto:dave.danner at utc.wa.gov>>; Daugherty, Bret D. MG (MIL) <Bret.Daugherty at mil.wa.gov<mailto:Bret.Daugherty at mil.wa.gov>>; Feek, Cami (ESD) <cami.feek at esd.wa.gov<mailto:cami.feek at esd.wa.gov>>; Glasper, Marcus (DOL) <Marcus.Glasper at dol.wa.gov<mailto:Marcus.Glasper at dol.wa.gov>>; Guerin, Tracy (DRS) <tracy.guerin at drs.wa.gov<mailto:tracy.guerin at drs.wa.gov>>; Hunter, Ross (DCYF) <ross.hunter at dcyf.wa.gov<mailto:ross.hunter at dcyf.wa.gov>>; Kehoe, Bill (WaTech) <Bill.Kehoe at watech.wa.gov<mailto:Bill.Kehoe at watech.wa.gov>>; Meneses, Jilma (DSHS/OOS) <jilma.meneses at dshs.wa.gov<mailto:jilma.meneses at dshs.wa.gov>>; Meotti, Michael (WSAC) <MichaelM at wsac.wa.gov<mailto:MichaelM at wsac.wa.gov>>; Millar, Roger <millarr at wsdot.wa.gov<mailto:millarr at wsdot.wa.gov>>; Puente Jr., David (DVA) <David.Puente at DVA.WA.GOV<mailto:David.Puente at DVA.WA.GOV>>; Ryser, John (DOR) <JohnR at DOR.WA.GOV<mailto:JohnR at DOR.WA.GOV>>; Sacks, Joel (LNI) <sacj235 at LNI.WA.GOV<mailto:sacj235 at LNI.WA.GOV>>; Sandison, Derek (AGR) <DSandison at agr.wa.gov<mailto:DSandison at agr.wa.gov>>; Schumacher, David (OFM) <David.Schumacher at ofm.wa.gov<mailto:David.Schumacher at ofm.wa.gov>>; Sciba, Jennifer (ACB) <jennifer.sciba at acb.wa.gov<mailto:jennifer.sciba at acb.wa.gov>>; Shah, Umair A (DOH) <umair.shah at doh.wa.gov<mailto:umair.shah at doh.wa.gov>>; Smith, Tara (DES) <tara.smith at des.wa.gov<mailto:tara.smith at des.wa.gov>>; Stewart, Kendrick (COM) <kendrick.stewart at commerce.wa.gov<mailto:kendrick.stewart at commerce.wa.gov>>; Strange, Cheryl (DOC) <cheryl.strange at doc1.wa.gov<mailto:cheryl.strange at doc1.wa.gov>>; Watson, Laura (ECY) <lawa461 at ECY.WA.GOV<mailto:lawa461 at ECY.WA.GOV>>; Wicker, Kelly (GOV) <kelly.wicker at gov.wa.gov<mailto:kelly.wicker at gov.wa.gov>>; Reykdal, Chris <chris.reykdal at k12.wa.us<mailto:chris.reykdal at k12.wa.us>>
Cc: Minor, Rose (GOV) <Rose.Minor at GOV.wa.gov<mailto:Rose.Minor at GOV.wa.gov>>; Rains, Katie (AGR) <KRains at agr.wa.gov<mailto:KRains at agr.wa.gov>>; Mena, Sharlett (ECY) <mesh461 at ECY.WA.GOV<mailto:mesh461 at ECY.WA.GOV>>; Mele, Catherine (DFI) <catherine.mele at dfi.wa.gov<mailto:catherine.mele at dfi.wa.gov>>; Ellsworth, Michael L (DOH) <Michael.Ellsworth at DOH.WA.GOV<mailto:Michael.Ellsworth at DOH.WA.GOV>>; Fellin, Tammy (LNI) <felu235 at LNI.WA.GOV<mailto:felu235 at LNI.WA.GOV>>; Leland, Maggie (LNI) <brez235 at LNI.WA.GOV<mailto:brez235 at LNI.WA.GOV>>; Needham, Mich'l P. (HCA) <Mich'l.Needham at hca.wa.gov>; Snell, Nona (OFM) <Nona.Snell at ofm.wa.gov<mailto:Nona.Snell at ofm.wa.gov>>; Nolan, Ellen E. (DSHS/ESA/OAS) <ellen.nolan at dshs.wa.gov<mailto:ellen.nolan at dshs.wa.gov>>; Cotton, Megan <CottonM at wsdot.wa.gov<mailto:CottonM at wsdot.wa.gov>>; Audette, Heidi (DVA) <HeidiA at DVA.WA.GOV<mailto:HeidiA at DVA.WA.GOV>>; McCallum, Scott <scott.mccallum at wssb.wa.gov<mailto:scott.mccallum at wssb.wa.gov>>; Baldwin, Shelly (WTSC) <sbaldwin at wtsc.wa.gov<mailto:sbaldwin at wtsc.wa.gov>>; Pannkuk, Pam (WTSC) <ppannkuk at wtsc.wa.gov<mailto:ppannkuk at wtsc.wa.gov>>; Jennrich, Timothy (DOR) <TimJe at DOR.WA.GOV<mailto:TimJe at DOR.WA.GOV>>; Stillman, David (DSHS/ESA/OAS) <david.stillman at dshs.wa.gov<mailto:david.stillman at dshs.wa.gov>>; Marcus, Roselyn (OFM) <Roselyn.Marcus at OFM.WA.GOV<mailto:Roselyn.Marcus at OFM.WA.GOV>>; Rakhra, Litta <lita.rakhra at us.af.mil<mailto:lita.rakhra at us.af.mil>>; Baumgart, James (MIL) <James.Baumgart at mil.wa.gov<mailto:James.Baumgart at mil.wa.gov>>; Scott, Alex (COM) <alex.scott at commerce.wa.gov<mailto:alex.scott at commerce.wa.gov>>; Stokes, Genevieve (DCYF) <genevieve.stokes at dcyf.wa.gov<mailto:genevieve.stokes at dcyf.wa.gov>>; Krutsinger, Allison (DCYF) <allison.krutsinger at dcyf.wa.gov<mailto:allison.krutsinger at dcyf.wa.gov>>; Arlen Harris <aharris at sbctc.edu<mailto:aharris at sbctc.edu>>; Daudon, Maud (CCW) <maud.daudon at careerconnectwa.org<mailto:maud.daudon at careerconnectwa.org>>; Tang, Jie (OFM) <jie.tang at ofm.wa.gov<mailto:jie.tang at ofm.wa.gov>>; Needham, Mich'l P. (HCA) <Mich'l.Needham at hca.wa.gov>; Stroming, Ahren (PSP) <ahren.stroming at psp.wa.gov<mailto:ahren.stroming at psp.wa.gov>>; Mele, Catherine (DFI) <catherine.mele at dfi.wa.gov<mailto:catherine.mele at dfi.wa.gov>>; Bouton, Drew W (DFI) <drew.bouton at dfi.wa.gov<mailto:drew.bouton at dfi.wa.gov>>; Clark, Charlie E (DFI) <charles.clark at dfi.wa.gov<mailto:charles.clark at dfi.wa.gov>>; Danner, Dave (UTC) <dave.danner at utc.wa.gov<mailto:dave.danner at utc.wa.gov>>; Baumgart, James (MIL) <James.Baumgart at mil.wa.gov<mailto:James.Baumgart at mil.wa.gov>>; Jekel, Caitlyn (ESD) <caitlyn.jekel at esd.wa.gov<mailto:caitlyn.jekel at esd.wa.gov>>; Guerin, Tracy (DRS) <tracy.guerin at drs.wa.gov<mailto:tracy.guerin at drs.wa.gov>>; Merchant, Shawn (DRS) <shawn.merchant at drs.wa.gov<mailto:shawn.merchant at drs.wa.gov>>; Stokes, Genevieve (DCYF) <genevieve.stokes at dcyf.wa.gov<mailto:genevieve.stokes at dcyf.wa.gov>>; Krutsinger, Allison (DCYF) <allison.krutsinger at dcyf.wa.gov<mailto:allison.krutsinger at dcyf.wa.gov>>; Puckett, Derek (WaTech) <derek.puckett at watech.wa.gov<mailto:derek.puckett at watech.wa.gov>>; Noski, Jon (DSHS/FFA) <jon.noski at dshs.wa.gov<mailto:jon.noski at dshs.wa.gov>>; Meotti, Michael (WSAC) <MichaelM at wsac.wa.gov<mailto:MichaelM at wsac.wa.gov>>; Hudson, Heather (WSAC) <heatherhu at wsac.wa.gov<mailto:heatherhu at wsac.wa.gov>>; Cotton, Megan <CottonM at wsdot.wa.gov<mailto:CottonM at wsdot.wa.gov>>; Audette, Heidi (DVA) <HeidiA at DVA.WA.GOV<mailto:HeidiA at DVA.WA.GOV>>; Jennrich, Timothy (DOR) <TimJe at DOR.WA.GOV<mailto:TimJe at DOR.WA.GOV>>; Ruckle, Kathryn (WaTech) <kathryn.ruckle at watech.wa.gov<mailto:kathryn.ruckle at watech.wa.gov>>; Puckett, Derek (WaTech) <derek.puckett at watech.wa.gov<mailto:derek.puckett at watech.wa.gov>>; Tang, Jie (OFM) <jie.tang at ofm.wa.gov<mailto:jie.tang at ofm.wa.gov>>; Marcus, Roselyn (OFM) <Roselyn.Marcus at OFM.WA.GOV<mailto:Roselyn.Marcus at OFM.WA.GOV>>; Evans, Rayanna (OFM) <Rayanna.Evans at ofm.wa.gov<mailto:Rayanna.Evans at ofm.wa.gov>>; Chapman-See, Katherine (OFM) <Katherine.Chapman-See at ofm.wa.gov<mailto:Katherine.Chapman-See at ofm.wa.gov>>; Sanchez, Alejandro (DOL) <AlSanchez at dol.wa.gov<mailto:AlSanchez at dol.wa.gov>>; Fellin, Tammy (LNI) <felu235 at LNI.WA.GOV<mailto:felu235 at LNI.WA.GOV>>; Manuel, James (DOL) <James.Manuel at dol.wa.gov<mailto:James.Manuel at dol.wa.gov>>; Rains, Katie (AGR) <KRains at agr.wa.gov<mailto:KRains at agr.wa.gov>>; Ellsworth, Michael L (DOH) <Michael.Ellsworth at DOH.WA.GOV<mailto:Michael.Ellsworth at DOH.WA.GOV>>; Larson, Ann (DES) <ann.larson at des.wa.gov<mailto:ann.larson at des.wa.gov>>; Thompson, Melena L. (DOC) <melena.thompson at DOC1.WA.GOV<mailto:melena.thompson at DOC1.WA.GOV>>; Mena, Sharlett (ECY) <mesh461 at ECY.WA.GOV<mailto:mesh461 at ECY.WA.GOV>>; Flores, Lola (ECY) <lflo461 at ECY.WA.GOV<mailto:lflo461 at ECY.WA.GOV>>; Scott, Alex (COM) <alex.scott at commerce.wa.gov<mailto:alex.scott at commerce.wa.gov>>; Batiste, John (WSP) <John.Batiste at wsp.wa.gov<mailto:John.Batiste at wsp.wa.gov>>; Paquette, Mike (ACB) <mike.paquette at acb.wa.gov<mailto:mike.paquette at acb.wa.gov>>; Sciba, Jennifer (ACB) <jennifer.sciba at acb.wa.gov<mailto:jennifer.sciba at acb.wa.gov>>; McLeod, Bevin (DNR) <Bevin.Mcleod at dnr.wa.gov<mailto:Bevin.Mcleod at dnr.wa.gov>>; West, Meagan L (DFW) <Meagan.West at dfw.wa.gov<mailto:Meagan.West at dfw.wa.gov>>; Neatherlin, Erik (GSRO) <erik.neatherlin at gsro.wa.gov<mailto:erik.neatherlin at gsro.wa.gov>>; Duffy, Megan (RCO) <megan.duffy at rco.wa.gov<mailto:megan.duffy at rco.wa.gov>>; Shultz, Ron (SCC) <RShultz at scc.wa.gov<mailto:RShultz at scc.wa.gov>>; Garza, Rick J (LCB) <rick.garza at lcb.wa.gov<mailto:rick.garza at lcb.wa.gov>>; Bumpus, Sonia (EFSEC) <sonia.bumpus at efsec.wa.gov<mailto:sonia.bumpus at efsec.wa.gov>>; Paul Francis <pfrancis at sbctc.edu<mailto:pfrancis at sbctc.edu>>; Walker, Steve (WSHFC) <steve.walker at wshfc.org<mailto:steve.walker at wshfc.org>>; Snell, Nona (OFM) <Nona.Snell at ofm.wa.gov<mailto:Nona.Snell at ofm.wa.gov>>; Fellin, Tammy (LNI) <felu235 at LNI.WA.GOV<mailto:felu235 at LNI.WA.GOV>>; Miller, Micheala <Michaela.miller at k12.wa.us<mailto:Michaela.miller at k12.wa.us>>; Plaja, Jenny (LEG) <jenny.plaja at k12.wa.us<mailto:jenny.plaja at k12.wa.us>>; Jeffries-Simmons, Tennille (OSPI) <Tennille.Jeffries-Simmons at k12.wa.us<mailto:Tennille.Jeffries-Simmons at k12.wa.us>>; Martin-Jahn, Amber (OFM) <amber.martin-jahn at ofm.wa.gov<mailto:amber.martin-jahn at ofm.wa.gov>>; Scott, Alex (COM) <alex.scott at commerce.wa.gov<mailto:alex.scott at commerce.wa.gov>>; WELSH, GENT JR Brig Gen NG ANG WAANG HQ/CC <gent.welsh at us.af.mil<mailto:gent.welsh at us.af.mil>>; Rakhra, Litta <lita.rakhra at us.af.mil<mailto:lita.rakhra at us.af.mil>>; Baumgart, James (MIL) <James.Baumgart at mil.wa.gov<mailto:James.Baumgart at mil.wa.gov>>; Noski, Jon (DSHS/FFA) <jon.noski at dshs.wa.gov<mailto:jon.noski at dshs.wa.gov>>; Parascand, Matthew (DSHS/ESA/OAS) <Matthew.Parascand1 at dshs.wa.gov<mailto:Matthew.Parascand1 at dshs.wa.gov>>; Beck, Emily (OFM) <Emily.Beck at ofm.wa.gov<mailto:Emily.Beck at ofm.wa.gov>>; Duff, Robert (GOV) <Robert.Duff at GOV.wa.gov<mailto:Robert.Duff at GOV.wa.gov>>
Subject: Federal Update - Government Funding, Shutdown Risk, and Outlook for Resolution
Importance: High

[Sent from outside SBCTC]

Agency Directors and Federal Affairs Contacts,

Below is an update on the status of negotiations for federal fiscal year 2024 funding. Current federal appropriations expire on September 30, and if a new agreement is not reached by then, we will experience a federal government shutdown. This outcome is becoming increasingly likely.

Why are we here?

You might remember back in June that Congress reached a deal to extend the debt limit, which included top line spending levels for the new fiscal year and a path for returning to regular order and passing all 12 appropriations bills. The House Republican Majority is disregarding that agreement and is now demanding more cuts to spending, among other ideological goals. Meanwhile the Senate has passed out of committee bipartisan appropriations bills based on the debt limit agreement and is beginning the process of floor passage for those bills - trying to adhere to regular order, with input from both parties. However, even the Senate's efforts are now being held up by Sen. Ron Johnson (R-WI)'s objections to the first batch of appropriations bills.

So, the Senate and the House are living in two different realities when it comes to funding the government... and they will have to eventually agree on funding for the next fiscal year, which is virtually impossible to accomplish before the quickly approaching September 30 deadline.

Both House Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer last month accepted that a continuing resolution (CR) of some duration would be necessary to provide enough time to come to an agreement on full year appropriations. Unfortunately, Speaker McCarthy has not been able to secure enough Republican votes in the House to pass any funding extension.

State of play

Yesterday, House Republicans attempted to pass a CR bill containing a number of partisan "poison pill" provisions that would be defeated in the Senate, but Republican leadership failed to even secure a procedural vote to move forward on that measure due to objections from several far right Republican members who wanted deeper spending cuts and policy changes in exchange for a CR. If this partisan bill, that would already be unable to pass in the Senate, cannot be passed on the House floor with only Republican votes, it is unclear if any spending measure can pass right now.

If a partisan CR bill like this was able to be passed by the House, it would provide a way forward for the Senate to consider the bill, strip partisan provisions, and send a clean CR back to the House for a vote. A clean CR, or any Senate passed provision, would assuredly require Democratic votes for passage. This is the most likely path for a resolution. However, some House Republicans are threatening to remove Kevin McCarthy as Speaker if he allows a measure to be considered on the House floor designed to gain passage with Democratic votes, which greatly complicates that possibility.

Outlook

Given all these complicating factors, as of today, a federal government shutdown of some duration on October 1 seems the most probable outcome. How long a shutdown we see is hard to predict, and absent a Congressional agreement emerging soon, we should plan for the possibility of a long-term shutdown, like the one in December of 2018 into January 2019. There is also a possibility this impasse is resolved with a short-term CR, only for similar disagreements to resurface and cause a shutdown later this year.

State Impacts

Assuming funding does expire on September 30, most annually appropriated discretionary federal funding to the state will be impacted. However, that does not include all federal funding. For example, mandatory spending programs, any programs that have already received their funding for a program year that began before October 1, or programs with funding from the previous fiscal year that can be rolled over should be able to continue operating with minimal disruption. Federal agencies are beginning to update their shutdown memos which will outline more specifically what funding streams are impacted, what funding can still be used and what spending can be reimbursed.

OFM will also be sending out additional information soon for state agencies regarding planning and procedures for a potential federal government shutdown.

Bottom line: Now is the time to responsibly prepare for a federal government shutdown of considerable length, while still hoping for a resolution before those plans need to be implemented.

That is what we know right now. I'll update as more concrete details emerge. Please feel free to email me, or DC Office Deputy Director Rose Minor (rose.minor at gov.wa.gov<mailto:rose.minor at gov.wa.gov>), with any specific questions or concerns you run into as this process unfolds.

Best regards,

Morgan Wilson

MORGAN WILSON

Director, Federal & Inter-State Affairs

Office of Governor Jay Inslee

360.968.9255| morgan.wilson at gov.wa.gov<mailto:morgan.wilson at gov.wa.gov>

Pronouns: She/Her/Hers

www.governor.wa.gov<http://www.governor.wa.gov/>

Email communications with state employees are public records and may be subject to disclosure, pursuant to Ch. 42.56 RCW.

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