FOR IMMEDIATE RELEASE:
Contact: Ray Carter, House Media
Capitol: (405) 557-7421
Contact: State Rep. Wes Hilliard
Capitol: (405) 557-7412
Sulphur: (580) 622-4504

Hilliard Questions Fees Charged to Schools for the Deaf and Blind
OKLAHOMA CITY (July 20) -

Worried that "indirect" costs paid by the Oklahoma Schools for the Deaf
and Blind to the Department of
Rehabilitation Services will force budget cuts at the schools, State
Rep. Wes Hilliard has requested and been approved for a legislative
study on the issue.

"It looks like money we appropriate to the Oklahoma Schools for the Deaf
and Blind is being diverted and used to subsidize the Department of
Rehabilitation Services," said Hilliard, D-Sulphur.

"My constituents expect their tax dollars to be spent as designated in
state law, so I believe we need to review this practice."
Because the two schools fall under the Department of Rehabilitation
Services, funding for both schools is funneled through the agency's
budget. Currently, the department charges both an indirect cost that
takes up a large portion of the allocated dollars for the two schools.

To justify the practice, Hilliard said the Department of Rehabilitation
Services cites a rule issued by the Office of Management and Budget, but
after researching the issue, it appears the OMB rule applies to federal
funds and not state dollars.

"At this point, it's not clear if the Department of Rehabilitation
Service has the authority to charge indirect costs to the
Schools for the Blind and Deaf," Hilliard said. "If they don't, the fees
should be revoked immediately."

He noted that the Department of Rehabilitation has increased the
percentage of the total budget it takes from both schools for
"administrative costs" every year for several years.

Hilliard said a legislative study is needed to determine if the
department has authority to take indirect costs, how any fee should be
determined, what services the schools get from the department, and what
authority the department has to take the money allocated to the schools.
In the next fiscal year, he said the department will
receiveapproximately $945,000 originally budgeted to Schools for the
Blind and Deaf.

"For every dollar DRS takes, the burden on our state's blind and deaf
increases," Hilliard said. "I realize the schools should pay for the
services they receive, but I'm not sure they are getting $945,000 worth
of services and I believe a portion of that money should remain at the
Schools for the Blind and Deaf.".

He noted lawmakers provided an additional $171,000 to both schools this
year to increase teacher pay, but those raises may now cause a hardship
on the schools because the Department of Rehabilitation Services has
increased the indirect costs it charges by $181,000.

"Money that should be going to Oklahoma's blind and deaf students is
instead going into the pockets of bureaucrats," Hilliard
said. "That's not right."

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