Oklahoma DHS outlines FY‑26 budget request, flags $7.7M state match for FMAP

Department of Human Services Director Jeffrey Cartmell presented the agency’s FY‑26 budget request to the House Appropriations and Budget Committee, saying the request reflects a mix of recurring needs, one‑time carryover and internal adjustments rather than a large slate of new appropriations.

Cartmell said the department’s top near‑term budget item is a roughly $7.7 million state match to cover a federal FMAP (Federal Medical Assistance Percentage) reduction so Medicaid‑related services remain funded at prior service levels. “The 7.7 is to cover the half a little over half a point Federal percentage reduction … and it will basically bring us back even with our services that we were providing last year,” Danielle Durkee, chief financial officer, told members when answering a question on FMAP.

Why it matters: FMAP changes shift the portion of Medicaid and related program costs the state must pay. Cartmell said the agency reviewed carryover and unused appropriations before asking for new recurring funding and that some salary requests could be funded by reassigning the budget tied to longstanding vacant positions.

Key details from the presentation and questioning

- Agency size and constraints: Cartmell said the Department employs roughly 6,000 people and typically has about 650 vacant positions at any given time. He said leadership has asked division directors what they could afford to pay for “today with money we already have” before requesting new funds.

- Provider rate direction and SB 1137: Cartmell referenced Senate Bill 1137 from the prior budget cycle, which included provider rate directives. He told the committee the Legislature directed $30 million be appropriated from DHS’ appropriation for provider rate increases; the agency plans to include the remaining roughly $15 million the Legislature anticipated in FY‑26 as recurring in its request.

- Vacant positions as a funding source: Cartmell said one approach under consideration is decreasing the reliance on open positions (pens) and reallocating those dollars to address salary compression or targeted raises for hard‑to‑fill roles.

- Functions moved out by statute: The committee asked about SB 1709, which moved the Office of Client Advocacy and the long‑term care ombudsman functions out of DHS. Cartmell said that transfer removed approximately 59 FTEs (represented as about 63 position authorizations) from the agency’s payroll.

Discussion versus decisions

Committee members asked for additional detail on individual line items, market assumptions, and the agency’s use of carryover; Cartmell and Durkee answered questions and committed to follow up with specific numbers where not immediately available. The presentation was a budget request and informational; no committee appropriation votes were taken during the hearing.

Ending

Cartmell closed by reiterating the agency’s aim to sustain recent program gains while planning for demographic shifts, and Durkee and Katie Demuth, DHS chief of staff, committed to provide follow‑up data requested by members.