OK. Mental Health Dept. asks for extra $6.2 Million, Governor appoints special investigator

The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is asking the legislature for an additional $6.2 million to balance its budget just as Gov. Kevin Stitt appoints a special investigator.

ODMHSAS submitted its formal request for supplemental funding following what it calls a "comprehensive, agency-wide review of revenue streams and expenditures." The department says the additional funding is needed to "responsibly meet obligations while maintaining the quality and accessibility of care for Oklahoma’s most vulnerable populations,"

The Governor announced Monday he would appoint a special investigator to examine ODMHSAS. He says this comes after multiple "disturbing discoveries" with the previous leadership's finances and contracting practices.

“I’ve had frustrations with the mental health department for years and now that we have Commissioner Allie Friesen putting a fresh set of eyes on the department, it’s clear there are problems that need special attention,” said Gov. Stitt. “What we need is an independent third party who can focus all their energy on shining light on this agency and rooting out bad actors.”

According to the Governor's office, the special investigator will examine every aspect of ODMHSAS, including finances, employment records, and contracting practices.

The state's mental health commissioner said Tuesday the agency currently faces a $43 million shortfall. In March, Governor Kevin Stitt asked the state auditor and inspector for a full audit.

“The Governor has been a steadfast partner as we’ve worked to implement accountability and transparency at this Department,” said Commissioner Friesen. “My top priority is the well-being of the Oklahomans in our care, and I want to get everything out in the open so we can focus back in on our core mission. The department welcomes this investigation and will fully cooperate.”

State contracts with three major Tulsa County mental health clinics are set to be terminated on May 10, 2025, raising concerns about access to care.

In a press release, ODMHSAS listed the following as its largest projected expenditures for the remainder of fiscal year 2025: 

1. $6,677,361 – IT and software upgrades
2. $9,035,399 – Title XIX Medicaid match (March–June 2025)
3. $35,489,000 – Enhanced Tier Payments for service providers (3 quarters)
4. $4,201,764 – Value-Based Payments for service providers (3 quarters) 

“We remain committed to being responsible stewards of taxpayer dollars while ensuring every Oklahoman has access to the care they need,” said Commissioner Friesen. “This supplemental appropriation will help us achieve that goal.”