State agencies brace for new cuts

Oklahoma agencies that receive state appropriations are being asked to absorb a combined $34.6 million in new budget cuts between now and July 1 as a result of tax revenues failing to meet budgeted expectations. These cuts are in addition to cuts agencies previously experienced as the state grappled with a downturn in the economy. Here is how the new budget cuts are going to affect some of the larger state agencies and what agency and legislative leaders had to say about it:

Common Education

$11.1 million spending cut, plus an additional $39.2 million shortfall in its 1017 education fund. “Today’s General Revenue failure, although not unexpected, poses a hardship to districts and schools already stretched thin as a result of ongoing budgetary challenges. It is difficult for any state entity to absorb a budget cut halfway through the fiscal year, but we are thankful to see encouraging signs that the energy sector may be rebounding.” Joy Hofmeister, state Superintendent of Public Instruction

Higher Education

$4.6 million spending cut. “As we continue preparations for our FY 2018 budget, our State System of Higher Education continues to implement significant cost-cutting measures, including sharing faculty and administrators between institutions, consolidation of back-office administrative functions, joint academic degree programs between institutions, travel reductions, early retirement options, and consolidation of campus sites . ... Given Oklahoma higher education’s unique role in advancing our state’s degree completion agenda and meeting Oklahoma’s workforce development needs, we will continue to make the case to the Governor and Legislature that higher education should be a top funding priority in the FY 2018 budget.”

Glen D. Johnson, chancellor

Mental Health and Substance Abuse Services

$2.1 million spending cut. “The department already needs $35 million just to maintain services and restore cuts from last year that slashed treatment services to over 73,000 Oklahomans. The hole just got a little deeper . ... We must remember that cuts to services impact far more than just the individual. Families and communities experience negative consequences when brain disease goes untreated. We see it in the form of children entering foster care, criminal justice engagement and incarceration, and too often, preventable deaths.” Terri White, commissioner of the Oklahoma Department of Mental Health and Substance Abuse Services

Department of Human Services

$4.2 million spending cut. “The DHS share of the revenue failure announced today just exacerbates an already dire situation for our agency. We requested a supplemental appropriation of $42.6 million late last year because we were not fully funded to operate all of our existing programs through June 30th. Several critical health and safety programs for vulnerable seniors, people with disabilities, and children are in jeopardy if our agency does not receive additional funds in the next month or so.”

Ed Lake, DHS director

Health Department

$375,923 spending cut. “At this time, we are exploring ways to address the revenue failure reductions. We have already taken significant cuts to the state appropriations over the years so our options are limited. This will have an impact on critical programs.” Jamie Dukes, spokeswoman, Oklahoma Department of Health

Corrections Department

$2.96 million spending cut. “Today’s announcement comes at a time when our state prisons are severely understaffed, well over capacity and have in excess of $2 billion in infrastructure needs. The result may come at an increased risk to public safety. Further, I don’t believe in furloughs or putting this on the backs of our employees. Just like last year, we will come up with a plan that is in the best interest of keeping our employees, the facilities and the public’s safety at a premium.”

Joe M. Allbaugh, Corrections director

House Speaker

“The current fiscal situation is challenging, but it is not insurmountable. Voters sent us here to solve these problems, and I truly believe we can find solutions to help us responsibly fill the budget gap and craft a budget that protects our most core services for 2018.”

House Speaker Charles A. McCall, R-Atoka

Senate President Pro Tem

“In the face of another budget shortfall, the Senate understands all options are on the table to deal with these challenges. However, it’s important to make sure we don’t overlook solutions like tax incentive reform, apportionment reform, and pursuing agency efficiencies that when combined will provide short-term relief and long-term budget stability.”

Senate President Pro Tem Mike Schulz, R-Altus