34 C.F.R. § 361.725
With regard to negotiations for infrastructure funding for Program Year (PY) 2017 and for each subsequent program year thereafter, if the Local WDB, chief elected officials, and one-stop partners do not reach consensus on methods of sufficiently funding local infrastructure through the local funding mechanism in accordance with the Governor's guidance issued under § 361.705 and consistent with the regulations in §§ 361.715 and 361.720 , and include that consensus agreement in the signed MOU, then the Local WDB must notify the Governor by the deadline established by the Governor under § 361.705(b)(3) . Once notified, the Governor must administer funding through the State funding mechanism, as described in §§ 361.730 through 361.738 , for the program year impacted by the local area's failure to reach consensus.
34 C.F.R. §361.725