Budget Stalemate Prompts DHHS To Cut Ties With Contractors

North Carolina's Department of Health and Human Services is dropping over 160 contractors. This is the latest casualty of the state budget stalemate.

The jobs being cut are all related to information technology.

DHHS released a statement to the News & Observer saying that because funding for many projects is tied to the state budget, it will need to sever contracts with 163 IT service providers.

The department says no state employees will be affected.

Last summer, lawmakers approved a budget proposal written by Republicans, but that was vetoed by Democratic Governor Roy Cooper.

A veto override was successful in the House, but not the Senate, and this year's budget has remained in limbo.

DHHS Secretary Mandy Cohen told lawmakers last October that the lack of a state budget would destabilize the department, and hamper a planned Medicaid transformation.

The proposed budget also includes funding for a relocation of the DHHS headquarters from Raleigh to Granville County.