• ODMHSAS initially indicated a potential inability to meet payroll obligations due to a $23 million shortfall for the remainder of the fiscal year.
• Conflicting statements emerged, with the agency later claiming payroll would be met, despite lawmakers being previously informed otherwise.
• Multiple investigations are underway, and Governor Stitt is taking steps, including hiring financial experts and an attorney, to address the agency's financial mismanagement and operational issues.

The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is currently embroiled in a financial crisis, marked by a significant budget shortfall. The agency initially alerted lawmakers about a potential inability to meet payroll obligations. This announcement triggered immediate concern among legislators, leading to a series of investigations by the House of Representatives, the Legislative Office of Fiscal Transparency (LOFT), and the Governor's office. The situation is further complicated by conflicting statements from the agency, which later claimed it would be able to meet payroll, creating confusion and raising questions about the accuracy and transparency of the information being provided.

• What: The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) faces a budget shortfall of $23 million, leading to initial concerns about its ability to meet payroll obligations. Investigations are underway to determine the cause of the shortfall and address potential mismanagement.
• Who: Key individuals involved include: Governor Kevin Stitt, ODMHSAS Commissioner Allie Friesen, House Speaker Kyle Hilbert, Senate Pro Tem Lonnie Paxton, Attorney General Gentner Drummond, House Minority Leader Cyndi Munson, State Rep. Melissa Provenzano.
• When: The crisis unfolded in late April and early May 2025. Key dates include May 2nd, when the agency initially indicated payroll issues, and May 7th/21st as potential dates for payroll failure (later retracted by the agency).
• Where: The events are centered in Oklahoma, involving the state government, the ODMHSAS, and the state legislature.

The situation at ODMHSAS reflects a deep-seated issue of financial mismanagement and a lack of transparency. The conflicting statements from the agency regarding payroll exacerbate the problem, eroding public trust. The multiple investigations launched by different entities underscore the severity of the situation and the need for a thorough examination of the agency's financial practices. Governor Stitt's response, including bringing in external experts, indicates a serious attempt to stabilize the agency and restore confidence. However, the calls for Commissioner Friesen's termination suggest a lack of faith in the current leadership's ability to resolve the crisis. The long-term impact on mental health services in Oklahoma remains a significant concern, especially given the state's already poor ranking in this area.

The financial meltdown at the Department of Mental Health and Substance Abuse Services is nothing short of government malpractice. The agency serves many of our most vulnerable citizens who are wholly reliant on these services, and these Oklahomans deserve agency leadership capable of meeting their needs.

We have taken every step to understand the fiscal needs of this agency but frankly the systemic mismanagement that has been uncovered is appalling.

ODMHSAS will be making payroll as scheduled. This administration continues to demonstrate our philosophy of uncovering problems and partnering with appropriate stakeholders to fix them in a meaningful way.

The Oklahoma Department of Mental Health and Substance Abuse Services is embroiled in a deepening financial crisis characterized by mismanagement and a lack of transparency, casting a shadow over the state's mental health services. Despite claims of being able to meet payroll obligations, a newly reported $23 million shortfall for the remainder of the fiscal year raises serious concerns about the agency's fiscal stability and its ability to provide vital services to vulnerable Oklahomans. The situation is further complicated by conflicting reports and a lack of clear explanations from agency leadership regarding the budget shortfalls, which have fluctuated significantly in recent months. Multiple investigations are underway by the state auditor, the Legislative Office of Fiscal Transparency (LOFT), the Governor's office, and a special House committee, all seeking to uncover the extent of the financial mismanagement and identify potential wrongdoing. Allegations include using current fiscal year funds to cover prior year expenses and questionable allocations of funds. The investigations also aim to address concerns about the agency's contracting practices and oversight of Certified Community Behavioral Health Clinics (CCBHCs). The crisis has triggered calls for accountability and leadership changes, with some officials urging the Governor to remove the current commissioner. The long-term consequences of these financial struggles could be severe, potentially impacting access to mental health services, especially for children, rural communities, and tribal populations. Close monitoring and decisive action are essential to stabilize the agency, restore public trust, and safeguard the well-being of Oklahomans who rely on these critical services.