The Oklahoma Department of Mental Health is asking the legislature for an additional $79.5 million next fiscal year, some of which would be used to cover costs left over from this year.
Financial audits reveal the department has long relied on improper budgeting practices to make its finances work, but agency leadership say the latest request marks a change in course.
In addition to its current state appropriation of $403 million, the department's request includes $40 million in Medicaid matching costs for both the current and upcoming fiscal year. It also asks the state for $22.5 million to perform technology upgrades and $17 million to implement court-ordered improvements to the state's competency restoration process for criminal defendants.
The increased funding request comes after the department reduced or cut funding for at least 300 contract line items with service providers across the state.
The agency has not released information about total costs saved by contract changes, or shared publicly which providers were affected.
Still, many mental health and addiction service providers, who say their organizations rely on the department for funding, have spoken out against the state-wide cuts.
The agency's interim commissioner, Greg Slavonic, said reducing contract obligations is necessary to get the department on track after years of financial mismanagement.
"We understand how much peer support and community services mean to the people they've helped," Slavonic said in a press release. "But our responsibility is to fund programs that align with our behavioral health mission, meet statutory requirements and stay within the budget provided by the Legislature."
The Department of Mental Health and Substance Abuse Services received an emergency appropriation of $27.4 million earlier this year in May, after it announced it would be unable to make payroll for state employees.
Along with cutting provider contracts, the agency reports reducing 23 internal executive positions to save $3.5 million annually.
In another attempt to cut costs, the department also said it will use a new contracting process. Previously, the department relied on sole-source contracts with service providers. Going forward, it will instead use statewide contracts negotiated by central purchasing and open Requests for Proposals.
A spokesperson for the department said sole-source contracts were being misused in some cases and the new structure will ensure a more competitive bidding process.
"We are here to serve Oklahomans struggling with mental health and addiction challenges," Slavonic said. "The best way to honor that mission is by managing taxpayer dollars wisely and transparently."
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.
