Oklahoma DHS Announces Budget Reductions

The Oklahoma Department of Human Services is cutting its budget and offering voluntary buyouts to its employees in response to the state's deepening budget problems.

State finance officials have declared a revenue failure for the fiscal year that ends June 30, triggering 3 percent budget cuts for the current year. DHS will lose almost $19 million in state-appropriated dollars and a total of $28 million due to the loss of federal matching funds.

DHS news release

“In this fiscal year we have been using our resources responsibly and found ways to pay for increasing costs without additional appropriations,” said DHS Director Ed Lake.  

“We are doing our best to prepare the agency for an even more difficult year next fiscal year.  But even with further significant internal reductions in DHS, it may not be possible to avoid impacting services to the most vulnerable people we and our contract partners serve. We will do everything we can to ensure our essential responsibilities are met.”

In addition, DHS leaders are projecting a $40 million shortfall next year due to a projected shortfall in the state budget for the fiscal year that begins July 1. As a result, the agency is offering voluntary buyouts to all employees, but agency managers will select the number and type of positions that can be eliminated.

The agency says DHS employees who select the buyout option, their last day on duty will be March 15.

The Associated Press contributed to this report.