In an email to agency employees and contractors, Oklahoma Department of Human Services Director Ed Lake said “many cuts detrimental to clients, employees and our partners will have to be implemented.”

The state agency was hit with a $45 million deficit early this year and faces a projected $46 million shortfall headed into the next fiscal year. In total, DHS is bracing for an estimated $150 million shortfall through a combination of state and federal funding reductions, Lake said.

Gov. Mary Fallin has proposed a funding increase for DHS in her budget, relying on $500 million in bonds and major changes to the state's tax system to make up for a projected $1.3 billion state budget deficit. But Lake told employees in a Thursday email the governor's plan does not appear to be winning over many lawmakers.

“Because of this uncertainty, we must plan for the worst and hope for the best,” Lake wrote. “That means we must prepare for unprecedented cuts to programs and services.”