Director Karpel summarized how the recent federal government shutdown affected agency operations and the steps leadership took to protect core services.

Karpel said the agency estimated an initial October impact of roughly $8.9 million and a possible November exposure near $35 million, after depleting federal carryover funds. Faced with those potential gaps, agency leadership used targeted administrative actions rather than broad program cuts: a part-time furlough affecting more than 2,300 employees (with lower-income frontline staff largely protected), a freeze on hiring for non-frontline positions, a restriction on travel, suspension of overtime, and a temporary suspension of approximately 350 contracts. The agency also paused some nonessential one-time technology spending and reallocated available carryover funds to cover immediate needs.

The director said the decisions were designed to minimize harm to the most vulnerable clients (for example, prioritizing child-care subsidies for younger children who do not have school meals), and she described the phased approach to unpausing contracts and returning paused activities after the federal government reopened. Karpel warned that federal funds had not fully flowed back immediately and some contract awards and CCDF (child-care discretionary) allocations remained uncertain.

Division leaders added details: Disability Determination Services (DDS) serves more than 52,000 individuals and receives a federal grant award cited in the meeting (approx. $49.6 million annually), and DDS drew down $7 million within two days of the government reopening to cover payroll and services. Agency leaders said they will continue to track federal allotments and restore paused actions as awards clear.

Commissioners thanked staff for prioritizing services and asked for continued updates as federal funding clarity arrives.