The Oklahoma Department of Mental Health and Substance Abuse Services needs an extra $2 million to maintain services until July, according to a report requested by Gov. Kevin Stitt.
The report was prepared by David Greenwell, an accountant — and former Oklahoma City councilman — tasked with looking into the department's financial standing after it unexpectedly cancelled state contracts and ran out of money to pay its employees.
Greenwell estimates the mental health agency needs $29.9 million to finish out the fiscal year, which ends on June 30.
The legislature agreed to grant a $27.9 million supplemental earlier this month, after a series of hours-long hearings, but this year's budget has not yet been finalized. Whether more funds will be directed to the agency remains unclear.
According to the report, the new total is based on actual expenditures and revenues through May 11, 2025, using historical data and trend analysis for a "best-effort projection with a reasonable margin of error."
The department has been at the center of controversy since it revealed it had a significant budget gap, months after session started. Despite becoming aware of the shortfall in February, agency officials weren't able to put a finger on just how much was missing. Commissioner Allie Friesen first asserted only $6.2 million was needed to sustain the department through a $43 million shortfall, but suspicion about the number grew when interim-CFO Skip Leonard failed to explain why.
"We are, for the first time in a very long time, uncovering the full depth of financial instability that has been hidden under layers of dysfunction," Friesen said during her second testimony in front of a joint committee hearing at the Capitol.
In addition to estimating a new funding need, the report outlines 52 recommendations to strengthen the department's financial reporting, reduce errors and mitigate fraud.
The report's recommendations include:
- Hiring a Chief Financial Officer and internal auditor with deep public sector experience
- Adopting accounting systems approved by the Office of Management and Enterprise Services (OMES)
- Using advanced analytics to prevent fraud and improve decision-making
- Expanding training to promote a culture of ethical conduct and accountability
- Enhancing transparency through real-time dashboards and public reporting
Greenwell estimates the recommendations will take up to 18 months to complete.
In a press release announcing the report, Stitt lauded Greenwell's efforts and commended Friesen and her staff for their cooperation. Stitt has maintained support for Friesen, whom he appointed to the role in January 2024, despite growing criticism of her leadership.
"Since joining ODMHSAS, I've been clear that I want to ensure this department is in the best position possible to care for those who need our services most," Friesen said in a statement. "I'm grateful to Governor Sitt, David Greenwell, and the team at OMES for their assistance in this matter. We are going to come out stronger on the other side."
This report was produced by the Oklahoma Public Media Exchange, a collaboration of public media organizations. Help support collaborative journalism by donating at the link at the top of this webpage.
