Oklahoma Lawmakers Launch Investigation into $43 Million Gap in Mental Health Funding

Oklahoma House Speaker Kyle Hilbert recently announced the formation of a select committee to review the finances at the Department of Mental Health and Substance Abuse Services (ODMHSAS) in Oklahoma. The committee, which includes a mix of legislators from both sides of the aisle, will be chaired by Majority Leader Mark Lawson. Its primary goal is to scrutinize the department’s financial practices and ensure state funds are being properly allocated to the critical mental health services the department provides.

Speaker Hilbert emphasized that it is the Legislature’s constitutional duty to oversee and appropriately allocate state funds, expressing concern over the lack of clarity regarding how much funding the ODMHSAS needs, particularly with the legislative session drawing to a close. He remarked that as the session nears its end, legislators still do not have a clear understanding of the department’s financial needs. “We have just over a month left in this legislative session, and we still don’t have a clear understanding of how much state funding ODMHSAS needs. This public hearing will help us get to the bottom of what has happened and what needs to happen moving forward,” Hilbert said.

Hilbert emphasized that the committee is approaching the investigation without any preconceived conclusions. “Oftentimes in politics, committees start with an end goal in mind,” Hilbert stated in an interview with News On 6. “In this situation, we are truly wanting to dig in and we don’t know how this is going to end. We want answers on how much money we need to finish the fiscal year, how much will be needed next year, and what’s going on with the contracts.”

The committee will focus on several key issues, such as the $5 million allocated for an upgraded electronic medical records system that was never implemented. Other concerns include the use of appropriations to cover prior years’ expenses, canceled contracts, and the department’s request for a fiscal year 2025 supplemental budget to fulfill its financial obligations. The committee will also explore the department’s long-term financial needs for fiscal year 2026.

In addition to the committee’s efforts, the state Auditor and Inspector is conducting a forensic audit of the agency, while the Legislative Office of Fiscal Transparency (LOFT) is reviewing existing contracts and finances. Governor Kevin Stitt has pledged to appoint a special investigator to provide a third-party perspective on the department’s financial practices and handling of state appropriated dollars. Majority Leader Lawson noted, “The people of Oklahoma are depending on the critical mental health services provided by the department, and we need more information than what we have in front of us right now to make a decision on if state funds have been spent appropriately, and what additional dollars may be needed to ensure continuity of care.”

Allie Friesen, the Commissioner of ODMHSAS, will be called to testify before the committee to provide clarification on several issues, including the department’s current financial state, the allocation of appropriated funds, and the department’s need for supplemental funding in the current fiscal year.

As the committee begins its review of the department’s finances, lawmakers hope to gain a better understanding of the current situation and ensure that Oklahoma’s mental health services continue to be adequately funded moving forward.