Oklahoma State Department of Health
Creating a State at Heaith

August 8, 2017

John Woods, Executive Director

Oklahoma Tobacco Settlement Endowment Trust
3800 Classen Suite 200

Oklahoma City, OK 73118?2864

Attn: Jennifer Treadwell, Business Analyst
Dear Mr. Woods,

I want to start by thanking you, and the Tobacco Settlement Endowment Trust (TSET) Board, for
a steadfast and productive partnership with the Oklahoma State Department of Health (OSDH).
We have achieved many successes together and i believe we are poised to see continued
significant health improvement over the next few years. No doubt, the leadership and vision of
TSET has been integral to implementing a strategic and outcome focused plan to address two of
Oklahoma?s leading causes of death and disability?tobacco use and obesity. Generations of
Oklahomans will benefit from the work you have done.

Because of our longstanding partnership, it is with deep regret that i have to inform you the
OSDH is unable to support the Healthy Oklahoma incentive grant programs (schools and
communities) afteriune 30, 2018. Not unlike other state agencies, the OSDH has realized a
nearly 30% reduction in our annual state appropriation since 2009. These reductions have led
to multiple workforce reductions, elimination and downsizing of programs (including cancer
screening for the uninsured and programs to ensure rural access to care) and closures of county
health departments. In addition to state reductions, declines in federal revenue place
increased budget pressure on the OSDH to the point we can no longer sustain our current
programs.

in reviewing the original contractual language and subsequent contract renewals we have
discovered this contract expired in calendar year 2013 while the work continued. The program
continued with the knowledge of both agencies as TSET submitted spending plans at the
request of OSDH. Necessary legal documents to authorize this program through the end of SFY
2018 will follow this letter to make current the authorization for the program. Further, the
funding for this program was provided to TSET as an interagency transfer and there will be a
projected balance of $3 million at the end of SFY ?18 (after negotiated budget reductions).
Therefore, lam notifying TSET the OSDH intends to discontinue support for all Healthy

Board of Health
Terry Cline, Martha A Berger. MBA Cris Hart-Wolfe Robert Stewart, M0 1000 NE in?? Street
President Vice President Secretary Treasurer Oklahoma City, OK 1'31 11120?
. Jenny Alexopuios, DO Charles Grim, DDS, Timothy Starkey, MBA or,
and Human Servrces . . 9
Terry Gerard, 00 Muralr Krishna, MD Edward A Legal-:0, MD An Equal Opportunity Employer

 

 

Oklahoma incentive grant programs at the end ofthis state fiscal year (June 30, 2018) and
respectfully request the immediate transfer of $3 million dollars back to the OSDH. Upon
execution of the new contractual or legal documents an updated spending plan will be
required.

i will close by saying I believe this program to be very innovative and acknowledge it has
supported many communities and schools as they have committed to making the healthy
choice the easy choice. it is my sincere hope that our budget outlook will improve and we can
once again support this program. Until such time we remain committed partners and look
forward to our continued work toward health improvement.

Sincerely,

  
 

 

 
      
    
   

Julie 
Senior nuty Commissioner and
Deputy Secretary of Health and Human Services

Board of Health
Terry Cline. Martha A Burger, MBA Cris Hart-Wolfe Robert Stewart, MD 1000 NE 10TH Street
Commissmner ofHeallh President Vice President Secretary - Treasurer Okiahoma City, OK ?311??120?
36'th Of Health Jenny Alexopulos, DO Charies Grim, DDS, MHSA Timothy Starkey. MBA 

 

and Human Services Terry Gerard. 00 Muraii Krishna, MD Edward A Legako, MD Equai Opportunity Employer