OKLAHOMA CITY — The Department of Human Services detailed budget reductions today to be made in response to the state revenue failure declared in late December 2015 and announced an agency-wide voluntary buy-out offer for employees to prepare for a $40 million projected shortfall in state fiscal year 2017.
On Dec. 23 the Cabinet Secretary of Finance declared a state revenue failure and ordered all state agency appropriations to be reduced by three percent of the current year appropriation (state fiscal year 2016).
For the Department of Human Services, this amounts to $18,748,396 state dollars; however, the agency must reduce its total budget by $28 million due to the resulting loss of federal matching funds.
“The three percent reduction actually equaled a six percent cut in our budget because the reduction percentage is applied to the full-year budget,” said DHS Director Ed Lake. “It was paramount to us and to the people we serve that we protect core services and direct client payments wherever possible. I believe we have achieved that with reductions which will minimize impacts on client services and avoid a disruption of normal business operations.”
Budget reductions for the revenue failure will include cuts to contracts but will not apply to fixed-rate contracts or to Medicaid waiver services in Aging or Developmental Disabilities Services.