How native governments can climate a federal shutdown

In our period of a divided federal authorities, the specter of authorities shutdowns appears to happen not less than as soon as per 12 months. When a shutdown happens, federal companies establish “non-essential” operations and shut them down as they don’t have any funding authority to help them. This creates a number of points for native governments, particularly people who rely upon federal grant funding for program operations. 

Within the occasion of a federal shutdown, native governments ought to think about the next contingencies to greatest put together accordingly. 

Guarantee all eligible, allowable expenditures have been reimbursed

Most governments draw down their grant reimbursements month-to-month, usually comparable to their month-to-month monetary assertion closing course of. Nevertheless, the executed grant agreements usually don’t preclude native governments from drawing down their reimbursements extra regularly. When below a nearing risk of presidency shutdown, I like to recommend rising the frequency of draw-downs to not less than weekly. As soon as a draw-down request is submitted, comply with up day by day to validate its standing. 

Guarantee well timed submission of all different required studies

Just about each grant settlement includes some type of reporting to the federal authorities, whether or not on a month-to-month or quarterly foundation. Native governments ought to submit all required studies by the date of the federal shutdown. This can guarantee studies are processed first as soon as regular operations are restored. Most significantly, bear in mind to submit any required studies all through the federal shutdown interval.

Establish different funding sources

Even when a program is predominantly funded with federal {dollars}, there could also be different sources of funds from which native governments can draw. For instance, the state authorities could have a comparable funding supply for native governments to make the most of. Personal foundations and nonprofits may additionally have grant packages to benefit from. Moreover, native governments can discover taking monies on their line of credit score or letters of credit score. As a ultimate possibility, and solely within the case of an prolonged federal shutdown, native governments can challenge a income anticipation word secured by the longer term grant reimbursement. Any of those choices will present native governments with wanted liquidity when the federal authorities is shut down. 

Establish “non-essential” operations 

The brutal actuality of federal shutdowns is that native governments could also be unable to proceed performing sure operations with out the funds to pay for them. Consequently, choice makers could should curtail the hours that sure authorities capabilities function, or decide to shut them altogether. Develop a contingency plan properly earlier than any federal shutdown happens. This plan ought to prioritize spending obtainable funds on important providers and curtail or eradicate spending on non-essential ones. Keep in mind to inform the neighborhood properly earlier than non-essential providers are curtailed or eradicated, so members have ample time to regulate.

Federal shutdowns are certainly a problem, necessitating frequent planning because the risk turns into extra commonplace. Thankfully, ample upfront planning and execution of contingency plans can assist native governments climate the storm.