DHS Director expresses gratitude for approval of 2017 supplemental funding, concerns for 2018

The Oklahoma Department of Human Services Director Ed Lake thanked the state Legislature and Governor today for approving $34 million in supplemental funds to the agency for the remainder of the state fiscal year which ends June 30, 2017.

“We are extremely grateful to the Legislature and to Governor Fallin for ensuring we have the funds necessary to continue providing critical Medicaid home and community-based services to seniors and people with developmental disabilities for the rest of this current fiscal year,” said Lake.

“Unfortunately, these same programs and many other services provided by our agency will be in jeopardy given the financial picture the state is facing for the next fiscal year which begins July 1.”

Even if DHS receives a “flat appropriation” for the upcoming fiscal year of $680 million (assuming the $34 million in supplemental funding is annualized in SFY-18), the agency would still be required to cut more than $50 million in services starting July 1 from its current operating costs of $733 million.

“With the recent state revenue failure and the lead time necessary to enact many of our budget options, we may have to begin implementing some of these plans sooner rather than later,” said Lake.

“We sincerely hope the Legislature is able to come together to find solutions for the state’s revenue shortfall to prevent some of these potentially devastating service reductions from becoming a reality.”

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Editor’s note:

See  DHS Budget Reduction Options for SFY 2018