The Oklahoma State Health Department (OSDH) is cutting 37 positions now and another 161 positions early next year. The announcement of the layoffs came Friday as the OSDH received approval for the move from the Office of Management and Enterprise Services (OMES) last week.
The Legislature had to provide another $30 million in funding for the Health Department when mismanagement of funds was revealed recently. OMES director Preston Doerflinger was named interim OSDH Commissioner to help sort things out.
“Over the past five weeks, I have met with Board members, legislators, individual staff, service area leaders and our Senior Leadership team to discuss our current financial situation, core programs and the need to reduce agency costs,” said Doerflinger. “Strategically, we reviewed each one of these items along with the mandate to reduce our state appropriations and have made some extremely difficult decisions. I commend the staff engaged in this effort as we work to put the Oklahoma State Department of Health back on a solid financial foundation.”
In March of 2018, another reduction in force will occur and will affect 161 classified positions. The notification for those employees should begin soon. The combined layoffs are projected to save the agency approximately $10.5 million a year, minus the upfront reduction in force costs of $3 million.
“While extremely difficult, this action is another step to bring the agency more in line with current work responsibilities and core service delivery,” said Doerflinger. “Many of these positions involved duties that are already being performed or can be absorbed by other positions in the counties and central office.”
The previously announced furloughs for OSDH employees who make $35,000 a year or more will end with the pay period ending December 23 as part of the RIF plan.
“As we move forward with reduced personnel, we must be able to provide critical services every day without interruption. Leadership will continue to evaluate our financial position and execute efficiencies to better serve the people of Oklahoma”
House Appropriations Subcommittee on Health Chairman Rep. Chad Caldwell said the decision to layoff Health Department employees wasn’t easy to make, but it was a necessary step to put the agency on a firmer financial footing.
“The layoffs announced today by the Oklahoma State Department of Health are not a commentary on the dedication or work of the individuals being affected. Instead, these layoffs were made necessary by the alleged misappropriation of funds by the agency’s previous leadership,” said Caldwell in a statement.
“Even with the appropriation of an additional $30 million, an increase of almost 60 percent of their FY-18 budget, the dire financial situation the agency found itself in required an action of this type to begin the process of bringing the agency back into financial compliance. The Department of Health is a core function of our state government, but after years of mismanagement, drastic measures were necessary to ensure the services that Oklahomans have come to depend on will still be there when they need them.
“Today’s news underscores the severity of the situation the agency is facing and reiterates the need for the House Special Investigation Committee to look deep into this problem and to find safeguards to prevent this catastrophe from repeating itself. That work begins Monday, and I look forward to the cooperation of all involved.
“I appreciate the efforts by Secretary Doerflinger and his staff to keep the legislature informed of their ongoing efforts, and I was pleased to learn that furloughs for OSDH employees will end with the pay period ending December 23.”
The House Special Investigation Committee looking into the Health Department’s financial mismanagement is set to begin meeting Monday at 9:30 a.m. in Room 2006 at the Oklahoma Capitol. Doerflinger, OMES Acting Director Denise Northrop and Governor Fallin’s Chief of Staff Chris Benge are expected to testify.
