This week’s program, the State Budget Crisis, Pt. 2, features an interview with Howard Hendrick, Director of the Department of Human Services, and Justin Jones, Director of the Oklahoma Department of Corrections.

Both directors told me their agencies are being pushed to the breaking point by the reduction in state revenues. In part, because each agency is growing. DOC keeps adding inmates, while the money for staffing and training is shrinking. In the current economic climate, the need for DHS assistance is increasing, yet money is not available to provide the necessary services. And, those who need help the most are the ones losing out.

While DOC receives little federal funding, that is not the case with DHS. Hendrick told me that in evaluating budget cuts, he has to look at what a reduction in state dollars will mean for federal matching funds. That’s one of the under-appreciated aspects of the current funding crisis: some agencies are seeing reductions in state and federal dollars, creating a double-whammy for those agencies.

State agencies will get an indication of where the funding situation stands on December 21 when the State Board of Equalization meets to certify funds available for appropriation next year. It’s nervous time for state-funded organizations, as they fear a further reduction in monthly allotments.

Until next time,
Dick Pryor

(Pictured above, left to right: Host Dick Pryor, Howard Hendrick, and Justin Jones)