OCCY approves lean FY2026 budget after warnings of shrinking federal and partner funding

The Oklahoma Commission on Children and Youth on June 25 approved the agency'wide fiscal year 2026 budget after staff described a smaller overall funding picture and a set of spending controls the commission must adopt before July 1.

Commissioners voted to adopt the fiscal plan after Director Jacoby told the panel the agency faced about a 2% net funding reduction compared with the prior year because several revenue streams are declining even though state appropriations rose slightly. Jacoby said the commission's payroll consumes nearly all of state general appropriations and left little discretionary money for operations.

"We got just shy of 2% less than we did in the year before," Jacoby said, noting that federal Title IV‑E reimbursements, preschool development grant funding and some State Department of Health contributions are expected to shrink. "We're going to be conservative, and we're going to look at a lower amount again."

Why it matters: OCCY distributes program funds and administers contracts used by providers across the state; smaller reimbursements and partner grants, combined with rising office costs, force the agency to reduce nonessential spending and delay hires.

Key items staff said are affected: the Big Brothers Big Sisters mentoring contract (budgeted for $80,000 but shown $16,000 short in the presented draft); a projected $100,000 need for juvenile competency evaluations (staff requested funding but did not receive the full ask); and a $70,000 request for the Office of Planning and Coordination's work on youth homelessness (shown $35,000 short in the draft). Jacoby said managers intend to prioritize the $80,000 mentoring contract and try to move funds internally to cover gaps.

To balance the budget, Jacoby outlined planned measures: no salary increases across the agency; a proposed 50% reduction in the chief child abuse examiner contract (pending further conversations); stricter travel restrictions; deferring additional office space; pausing new consultants and initiatives unless accompanied by new funding; slow‑filling of one vacancy; and other internal savings.

Jacoby also highlighted a rise in statewide service costs charged through the Office of Management and Enterprise Services (OMES), driven in part by a broader interpretation of liability that now counts board members the agency supports. "Our cost for OMES have gone up," she said. "It added too." She told commissioners the agency will press OMES and other decisionmakers where appropriate.

Vote and procedure: Commissioner Melinda Front moved to accept the FY2026 OCCY budget as presented; a second was recorded. The roll call recorded unanimous "Yes" votes from commissioners present and the motion passed.

The commission also approved the finance report covering fiscal year 2025 activity through May 31. Mahboob (business manager) presented the 11‑month financial overview: an annual budget of $6,100,000, year‑to‑date expenditures of roughly $4.916 million (about 81% utilization) and available cash balance of approximately $837,232. Mahboob attributed a December–February spending spike to disbursements to multidisciplinary teams.

When asked about the January spike, Jacoby and Mahboob explained the agency had passed through funds to multiple multidisciplinary teams during that period. The commission then moved and unanimously approved the finance report.

Commissioners emphasized constraints the budget may create for statutory duties the agency recently gained, including expanded investigative authority. Jacoby said the agency had asked for additional staff tied to that law change but did not receive funding and acknowledged the agency now has "the ability to do more without the resources to do more."

What happens next: Staff said they will monitor reimbursements and grant awards that are reimbursement‑based (notably federal Title IV‑E) and will return with any needed contract or budget amendments. Jacoby said the agency will continue to press legislative partners if unforeseen costs arise and to seek clarity on OMES cost allocations.

Ending note: Commissioners approved the FY2026 budget and the May 31 finance report in separate motions. Jacoby asked commissioners to be prepared to support operational choices during the coming fiscal year and said staff will report back on implementation and any necessary adjustments.