Arizona DES Faces Job Cuts Amid Controversial Executive Contract Renewals
The Arizona Department of Economic Security (DES) has been forced to implement a 5% workforce reduction due to dwindling federal grants and increased financial responsibilities for the state. This development has sparked controversy, especially after the agency renewed a high-paying executive position just days before issuing termination notices to staff.
Formerly selected by Governor Katie Hobbs, Dana Allmond, who serves as a “senior executive consultant” for DES, was renewed for a $170,000 contract. Allmond’s role focuses on facilitating veterans’ access to agency services, despite the recent layoffs within the department.
Allmond was originally appointed by Hobbs in 2023 to lead the Department of Veterans’ Services but did not pass the Senate confirmation process. Following a court directive, Hobbs reassigned Allmond as a deputy while maintaining her director-level salary.
Amidst these changes, DES established a new position for Allmond at the start of the year, which was extended in June, overlapping with the period of staff layoffs. These terminations took effect shortly after Allmond’s contract renewal.
A spokesperson for Governor Hobbs defended the importance of Allmond’s work in assisting veterans. Christian Slater, the governor’s press aide, emphasized Allmond’s role within DES’ “senior engagement team,” which is dedicated to helping veterans access essential services.
Slater attributed the workforce reduction to previous federal administration decisions, stating, “The workforce reduction at DES was an unfortunate consequence of the Trump administration’s reckless cuts that endanger DES’ work to combat fraud and efficiently deliver the critical services Arizonans rely on.”
Senator Jake Hoffman criticized the decision to renew Allmond’s contract amid budget strains, remarking, “Katie Hobbs’ jaw-dropping nearly $600,000 handout of taxpayer money to a former Democrat politician and her assistant for newly invented jobs reeks of corruption.”
Addressing the layoffs, Michael Wisehart, the head of DES, stated that economic challenges made it impossible to sustain current staffing levels despite efforts to maintain workforce stability.
The financial strain on Arizona is compounded by federal budget shifts, increasing the state’s administrative costs related to the Supplemental Nutrition Assistance Program by $38 million, bringing total costs to $113 million. Additionally, new charges based on payment error rates could result in DES absorbing around $115 million annually.
These fiscal adjustments have serious implications for the services provided to Arizonans, including job training, unemployment assistance, and other DES-administered programs like food aid.
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