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Oklahoma DHS outlines steps to cut SNAP error rate, warns of major state exposure without progress
Summary
DHS told the House committee its SNAP payment error rate could create large state costs beginning FY28 if not reduced; the agency outlined training, quality controls and an accountability 'pre‑read' process and asked for $25.5M to cover a federal‑to‑state shift in SNAP administrative costs.
Director Cartmell warned legislators that recent federal changes shifting SNAP administrative cost shares and a rising payment error rate create fiscal risk to the state. He told the committee that if the state does not reduce the error rate substantially, Oklahoma faces large cost shares beginning in FY28. "Beginning in FY28, if we did nothing... it would be about a $250,000,000 hit," he said while describing tiered scenarios tied to different error‑rate bands.
What DHS is doing: Cartmell outlined three principal reforms started in August: (1) an intensive multiweek training program for new staff cohorts; (2) an effort to redefine and embed quality metrics rather than focusing only on speed; and (3) a supervisory "pre‑read" for first‑year staff or cases over $800 to require a second review before payment. He said the pre‑read already prevented errors that would have totaled significant overpayments in recent weeks.
Administrative cost increase request: DHS also included a $25.5 million request to cover an anticipated increase in state share for SNAP administration after federal rule changes (noted in testimony as "HR 1" shifting cost share from a 50/50 model to a larger state share). Danielle Durkee described that administrative costs are largely borne by staff and information technology.
EBT chip card pilot and fraud prevention: Cartmell said DHS plans to introduce a chip card for the EBT system in the coming year; he cited another state's experience where a chip card reduced skimmed benefits by over 80% within months. DHS is also expanding the Inspector General's office to pursue criminal elements that exploit program benefits.
Committee context and next steps: Committee members pressed for metrics and funding; DHS said achieving an error rate below 6% would eliminate the state's error cost share under the new rule and that the agency is committed to getting below that threshold. The request for $25.5 million to cover administrative cost shifts is part of the agency's package and would require legislative action.
