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Report: Oklahoma Mental Health Agency Facing Nearly $30 Million Budget Hole

  • The agency responsible for mental health and substance abuse programs in Oklahoma is facing a budget gap of nearly $29 million for the fiscal year ending June 30, 2025.
  • This financial crisis arises from longstanding challenges such as previous questionable expenditures, increased Medicaid expenses, and the shift from a state-run to a privately operated Medicaid program.
  • The audit by CPA David Greenwell and State Auditor Cindy Byrd highlights tripled professional services costs from 2014 to 2024 and a 50% payroll increase to over $150 million, noting 38 new six-figure positions since Ally Friesen became commissioner in January 2024.
  • The audit advises the prompt hiring of a qualified chief financial officer, enhancing budget transparency, and implementing 52 recommended changes over an 18-month period to reinforce internal controls and improve patient care, while emphasizing that the mental health department is fundamentally sound and can recover through deliberate procedural adjustments, according to Greenwell.
  • Governor Kevin Stitt and department officials acknowledge the issues but emphasize a new beginning and commitment to resolving problems amid concerns about $8 million owed to substance abuse providers and ongoing investigations.
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oklahomavoice.com broke the news in on Monday, May 19, 2025.
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