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Subcommittee warned 7% cut would hit 38 prevention contracts
Summary
Secretary Steven Stack told the subcommittee a proposed 7% General Fund reduction would affect 38 prevention-service contracts and that the cabinet's approach would distribute reductions proportionally across vendors based on FY2026 funding levels.
Secretary Steven Stack told the Budget Review Subcommittee on July 1 that, "should the proposed 7% funding reduction be enacted, it would affect 38 contracts for prevention services." He described the cabinet's plan to align legislative objectives, executive capability, and community needs before determining contract reductions.
Stack said the 7% cut would be proportionally distributed among contracted vendors relative to fiscal year 2026 funding levels. He advised the committee that the cabinet would convene additional discussions to clarify the legislature's objectives and to evaluate executive-branch capacity to meet those objectives under reduced resources.
Committee members asked how reductions would be prioritized and whether there would be layoffs; Stack emphasized prioritizing high-performing programs and integrating roles rather than terminating staff.
