• ODMHSAS initially reported a budget shortfall that could have prevented them from meeting payroll obligations for employees.
• Governor Stitt is intervening by appointing a financial expert and an attorney to review the agency's finances and operations.
• Legislators are investigating the $63 million budget shortfall and the long-term implications for mental health services in Oklahoma.

The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) experienced a significant budget shortfall, initially raising concerns about its ability to meet payroll obligations. This development triggered investigations by the state legislature and prompted Governor Kevin Stitt to take immediate action. While the agency has since stated that payroll will be met, the situation has exposed deeper issues of financial mismanagement and operational deficiencies within ODMHSAS, leading to increased scrutiny and calls for reform.

• What: The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) experienced a budget shortfall, initially leading to concerns about meeting payroll. The agency has since stated it will meet payroll obligations, but the situation has triggered investigations and intervention to address financial and operational mismanagement.
• Who: Key individuals involved include Governor Kevin Stitt, House Speaker Kyle Hilbert, Senate Pro Tem Lonnie Paxton, Commissioner Allie Friesen, Deputy Director Gene Blankenship, and the employees of ODMHSAS.
• When: The initial concern about the budget shortfall arose in March 2025. ODMHSAS initially stated they would run out of funds by May 7th, later revised to May 21st. The agency announced they would make payroll on May 3rd, 2025.
• Where: The events are occurring within the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) and the Oklahoma State Capitol.

The situation at ODMHSAS reveals significant financial mismanagement and a lack of transparency. The initial announcement of a potential payroll failure created considerable anxiety among state employees. Governor Stitt's intervention and the legislative investigation highlight the seriousness of the issue and the need for immediate and long-term reforms. The long-term impact of this crisis could affect the quality and accessibility of mental health and substance abuse services in Oklahoma.

"It seems like with this department, everyday I'm like, ‘What's going to come out next?’ So it doesn't surprise me that this came out, but it is very, very concerning, and it’s even more concerning than we thought it was back in March when it was first brought out to light that there was some issues with this money."

"These are taxpayer dollars that are being spent to protect a very vulnerable constituency. I'm very concerned on if that's being lost here, is who we are trying to serve. I'd like to try and hide that I’m frustrated, but I’m frustrated."

"ODMHSAS continues to navigate a difficult but necessary period of operational and fiscal reform. We are working closely with state leadership and the Governor's Office to ensure continuity of services and stability for our workforce while addressing long-standing structural issues that have impacted the agency."

"The things that we were hearing the most is how am I going to pay my mortgage? How am I going to pay for my insurance? You know, my medications,"

ODMHSAS faces significant challenges despite averting immediate payroll failure. A $23 million budget shortfall for the remainder of FY25 and a projected $54 million increase needed for FY26 to avoid service cuts highlight the depth of the financial instability. The agency is under investigation by multiple entities, including LOFT, the State Auditor's Office, the Governor's Office, and the House Special Committee. Allegations of past mismanagement, including operating budgetary needs as a "fungible pot of money" and overbooking contracts, contribute to the crisis. Governor Stitt has initiated several actions, including appointing a financial expert to temporarily control finances and an attorney to conduct an independent review. These investigations aim to determine the full extent of the shortfall and ensure an accurate budget request. The situation is further complicated by a disagreement with the DOJ regarding the treatment of individuals with mental health conditions. The need for increased transparency and accountability is evident, as is the importance of ensuring continued access to vital mental health and substance abuse services for Oklahomans.