The Oklahoman

DHS has sent buyout offers to more than 400 employees in an effort that officials say will save the agency about $12 million in payroll costs,

- BY RANDY ELLIS Staff Writer rellis@oklahoman.com

The Oklahoma Department of Human Services sent official buyout offers to 413 employees Wednesday in a move expected to save the agency about $12 million in payroll costs.

The 413 employees, located in offices throughout the state, were chosen from a pool of 535 employees who expressed interest in taking voluntary buyouts, agency officials said in a message to employees Thursday.

Facing more than $68 million in budget reductions over the next 18 months, DHS administra­tors last month asked employees to submit their names if they would be interested in accepting buyouts.

Some who offered to take buyouts were not chosen for the program because their jobs were viewed as too critical.

“While every employee in this agency is valued, there were some in front-line positions or who perform other crucial duties that it did not benefit the agency to offer them a financial incentive to leave at this time,” said Ed Lake, DHS director. “I would like to express gratitude and appreciati­on to every employee who is voluntaril­y leaving for their commitment to this agency and for their dedication to the people they have served.”

March 15 will be the last work day for most employees who accept the buyouts, although some will stay on duty longer depending on retirement dates and reorganiza­tion efforts, officials said.

Since the buyouts are voluntary, it’s possible some could change their minds and decide not to participat­e, but most are expected to follow through, said Sheree Powell, an agency spokeswoma­n.

Further budget reductions within the agency are possible if the state’s financial picture continues to deteriorat­e, Lake warned.

“Although the savings we will realize in payroll costs will help us prepare for an extremely rough fiscal year in 2017, we are still experienci­ng serious budget issues,” Lake said. “We are waiting for the second shoe to drop, so to speak, on the amount of a second state revenue failure which could mean we have to employ other budget reduction strategies very rapidly. We will continue to keep employees informed of what is happening as quickly as possible.”

Participan­ts in the buyout will receive:

• A payment based on years of service ranging from a minimum of $5,000 to a maximum of $10,000.

• A payment equal to 18 months of the employee-only health premium.

• The employee’s next longevity payment that would have been received after separation.

• A payment of the employee’s accumulate­d vacation hours in accordance with state policy.

DHS had 7,188 full-time equivalent employees as of Jan. 1, which was 381 fewer than the 7,569 it had just two years earlier.

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