OMES says it needs $16M, and fast

State's IT agency says costs have grown more than it can handle

The state agency that provides information technology services for other agencies told lawmakers it needs $16 million to pay its bills.

Officials with the Office of Management and Enterprise Services said the agency is behind on payments to its vendors and owes $7 million on invoices that are 60 days late. If lawmakers don't free up the cash, the agency said other state services could suffer.

OMES is a large agency that provides services to other state entities such as human resources, budgeting, purchasing and IT. It receives an appropriation each year from the Legislature, but much of its operating costs are covered by payments it receives from its interagency contracts.

State Rep. Shane Stone, an Oklahoma City Democrat who sits on the committee that heard OMES' budget request, described gross mismanagement and a lack of oversight at the 8-year-old agency.

“I didn't hear any explanation that made sense,” Stone said. “A lot of that agency's size comes from what it collects from other agencies. It sounds like maybe they had undercharged those agencies. To me, that's even more worrisome.”

Stone said he first learned about the problems last week after speculation at the Capitol about OMES finances.

The agency needs $7 million by April 1 to avoid serious disruptions in service, said Senate Appropriations Chair Roger Thompson.

“I think they have money in their revolving funds to pay for that,” said Thompson, R-Okemah.

As of now, Thompson isn't ready to consider doling out the remaining $9 million.

“I want to do more research into their finances,” he said. “This is not a recent problem. While it may be recent to the Legislature, it's not a recent problem. It's something we want to correct and make sure it doesn't happen again.”

In an emailed statement Wednesday, an agency spokeswoman said the agency is meeting with House and Senate leadership and staff.

“While the agency's funding needs outlined in the supplemental request are still present, we are working with legislative leaders to find a workable solution for this fiscal year and ultimately identify a permanent funding solution for the state's IT infrastructure going forward,”

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said Shelley Zumwalt, director of OMES public affairs.

Gov. Kevin Stitt's office said in a separate statement that Agency Accountability Secretary John Budd helped bring OMES' original $23 million supplemental appropriations request down to $16 million.

While Thompson said he has full confidence in the executive branch to work through issues at OMES, he remains skeptical of the agency. This year he filed legislation to make IT services its own agency and give agencies more control over computer services and procurement.