• ODMHSAS Commissioner Allie Friesen announced the agency needs payroll support starting May 21st and requires $23 million to pay employees.
• Governor Kevin Stitt is taking immediate action, including bringing in financial experts and conducting an independent review of ODMHSAS.
• Lawmakers have formed a special committee to investigate the department's finances, alleging potential withholding of vital financial information by former employees.

The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is experiencing a financial crisis, casting doubt on the agency's ability to meet its payroll obligations. After initially stating they would meet payroll, ODMHSAS officials clarified that this week is the last they can do so without state assistance. Commissioner Allie Friesen stated that the agency needs $23 million to pay employees. This situation has triggered alarm among employees and prompted immediate action from Governor Kevin Stitt, including financial oversight and investigation. State lawmakers have formed committees to investigate the financial management and potential mismanagement within the department.

• What: The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is facing a financial crisis that may prevent the agency from meeting payroll obligations for its employees.
• Who: Key individuals include Allie Friesen (ODMHSAS Commissioner), Kevin Stitt (Oklahoma Governor), Paul Rosino (State Senator), Mark Lawson (State Representative), Gene Blankenship (ODMHSAS Deputy Director), and Ellen Buettner (Oklahoma Healthcare Authority CEO). Organizations involved are ODMHSAS, the Oklahoma Public Employees Association, the Oklahoma House of Representatives, and the Oklahoma State Senate.
• When: The crisis came to light in early May 2025. ODMHSAS says it needs payroll support starting May 21, 2025. The next fiscal year starts July 1, 2025.
• Where: The events are taking place in Oklahoma, specifically at the Oklahoma State Capitol and within the ODMHSAS.

The ODMHSAS financial crisis presents a significant challenge for the state of Oklahoma, potentially impacting thousands of state employees and the mental health services they provide. The situation escalated rapidly as the agency reversed its initial statement regarding payroll capabilities. The involvement of state lawmakers and Governor Stitt signals the seriousness of the issue, with investigations and interventions aimed at restoring financial stability and accountability. The long-term impacts will depend on the effectiveness of these measures and the agency's ability to address underlying financial mismanagement.

"Come May 21, we will need payroll support."

"Is this really a crisis or is it just a lack of accountability that they don't understand what they need?"

"We're going to fulfill our obligations to the state employees and to the folks that need mental health services."

"Oklahomans deserve answers to this, too. This is our money. This is taxpayer money, and we take that very, very seriously. Frankly, it's been treated like Monopoly money."

"I don't think they need more money. I don't. I just don't think they have the sophistication to figure it out."

"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,"

The Oklahoma Department of Mental Health and Substance Abuse Services faces a precarious future as it navigates a deepening financial crisis, potentially impacting its capacity to deliver essential services and meet payroll obligations. Prompted by a significant budget shortfall, now estimated at $23 million for the remainder of the fiscal year, the agency is under intense scrutiny, with multiple legislative and executive investigations and audits underway. Allegations of financial mismanagement, a lack of transparency, and discrepancies in budget reporting have surfaced, leading to a loss of confidence among key lawmakers. While Commissioner Allie Friesen asserts the agency is committed to reform and is working with state leadership to ensure continuity of services, the situation remains volatile, with the agency's ability to stabilize its finances and maintain essential mental health services for Oklahomans hanging in the balance. Governor Stitt has taken decisive action, including appointing a special investigator and bringing in a financial expert, to address the crisis and restore public trust.