OKLAHOMA CITY (OBV) – Gov. Kevin Stitt issued an executive order making it more challenging for state government agencies to transform staff positions into independent contractors.
“Agencies must be fiscally responsible and transparent,” Stitt said. “Transforming staff roles into independent contractors that cost taxpayers more is unacceptable. Oklahomans want smaller government, not government that hides behind gimmicks. We can continue to serve Oklahomans while ensuring that every dollar is spent efficiently.”
Stitt signed Executive Order 2025-09 this week to deter state agencies from transitioning full-time equivalent (FTE) employees to contractors.
Governor’s office officials said the executive order protects taxpayer money and ensures that state agencies are transparent and accountable.
The executive order’s key requirements are as follows:
- Mandatory Reports Due by April 15: All state agencies must submit a detailed report to the Director of the Office of Management and Enterprise Services (OMES) by Tuesday, April 15, 2025.
- Scope of the Report: Agencies must identify all FTE employees whose roles have been converted to independent contractor positions within the last 12 months. The report must include:
- The number of FTE positions and vacancies in the state agency as of December 17, 2024;
- The number of FTE positions and vacancies in the state agency as of the date of this Executive Order;
- A complete itemized list of all instances where agency FTE count has been reduced or where the agency has left a position vacant due to the use of independent contractors or other outside contracts within the preceding twelve (12) months;
- The total compensation, inclusive of benefits, for each FTE position eliminated due to or replaced by independent contractors or other outside contracts;
- The total cost of each contract, inclusive of benefits if applicable, that enabled the reduction in total state agency FTE positions or allowed the positions to remain vacant;
- A financial analysis of whether the change in total costs to the agency resulting from the use of independent contractors or other outside contracts has resulted in net savings, or net cost, to the taxpayers of the State of Oklahoma. This analysis shall be limited to quantifiable financial expenditures and shall not be inclusive of any subjective metrics or evaluations of the agency.
Oklahoma House of Representatives Speaker Kyle Hilbert, R-Bristow, praised Stitt for issuing the executive order.
“I want to thank Governor Stitt for taking decisive action to rein in unnecessary contract hiring,” Hilbert said. “This is exactly the type of fiscal responsibility Oklahomans expect. By closely evaluating contract hires, we can take a hard look at how our agencies are spending taxpayer dollars and ensure that every dollar is accounted for and spent according to legislative intent.”
House officials say the executive order aligns with House Bill 1607, written by Rep. Emily Gise, R-Oklahoma City. That bill seeks to increase transparency and accountability in the use of contract labor within state government. The bill passed unanimously, 96-0.
Hilbert said he learned that the Oklahoma Department of Mental Health and Substance Abuse is paying contract nurses $200/hour when they could pay an internally-hired nurse $65/hour. House officials referred to the instance as one of many examples of overspending that came to light.
The executive branch previously prohibited state agencies from hiring additional FTEs or asking for additional appropriations from the legislature. Agencies submitted more than $1 billion in appropriations requests to the legislature this year, despite the directive, according to House officials.
“This executive order complements our legislative efforts to shine a light on how the state utilizes contracted workers,” Hilbert said. “We’re not saying contract work doesn’t have its place—but we are saying it deserves the same level of scrutiny as any other line item in the budget. We must continue to balance the need for core government services and those employees best suited to provide those services with private sector solutions that can provide better or more efficient services. Transparency allows for open dialogue between agencies and the Legislature on how to best spend taxpayer dollars and ensure Oklahomans are getting the critical services they need.”
Stitt’s executive order is shared below:
