Hawaii DHS to reorganize and lay off 228 employees

The State Department of Human Services will lay off 228 employees on June 30 and implement a reorganization to streamline some public assistance programs. Human Services Director Lillian Koller announced the reorganization in January, saying the department would consolidate processing applications for social services programs such as welfare, Medicaid and the Supplemental Assistance Nutrition Program, or food stamps.

DHS will close 31 offices that now process benefits, centralizing operations into two facilities in Honolulu and Hilo on the Big Island. The two new processing facilities will open by Oct. 1 and 228 public employees will be laid off.

The department aims to streamline and modernize operations. Changes include allowing residents to apply for benefits by mail, fax, telephone or in person at remaining department offices, social service agencies, hospitals and health clinics. The move is expected to save the state $8 million a year.

“We wish it was not necessary to lay off any of our employees, but we cannot expect taxpayers to continue supporting our current eligibility processing system that is disbursed throughout 31 different offices,” Koller said in a statement on March 29. “The current system is antiquated, inefficient, labor-intensive, costly and slow, and modernizing the system will be better for our customers.”