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$43M shortfall: State Legislation seeks answers in mental health funding

State legislation (L) Commissioner Allie Freisen (R)
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OKLAHOMA CITY, Okla. — Lawmakers are demanding clarity following a stunning $43 million budget shortfall revealed by the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS).

During a meeting of the Select Committee on Mental Health, state representatives pressed Commissioner Allie Friesen for answers regarding the department's financial discrepancies.

“I call out my own mistakes and hold myself accountable for them,” Friesen stated, addressing concerns from the committee comprised of 13 members who were eager to understand the reasons behind the shortfall.

The ODMHSAS operates under Title 19 funding, a program that has recently come under fire for major funding gaps, particularly in relation to bonuses for mental health providers. Friesen acknowledged that the bonuses were perceived as essential for sustaining core services rather than typical remuneration.

“We certainly recognized very quickly from our valued substance abuse provider community this was not operating as a bonus or incentive payment, but rather to uphold their core functions,” she explained.

Amidst the questioning, Commissioner Friesen revealed that the department was incurring significant unexpected costs, including $20,000 a month for company phones still utilized by former employees.

“Duplicative services are impacting our budget, meaning they are providing similar services,” she said, referencing multiple occurrences of duplication, particularly within the COPES program in Tulsa.

Friesen noted that the ODMHSAS is currently negotiating with Family and Children Services regarding a new contract for the COPES program to be implemented in the 2026 fiscal year.

The situation was further complicated when Representative Josh West inquired about termination notification letters that had been sent to three behavioral clinics in Tulsa County. West questioned Friesen on the lack of knowledge regarding the cancellations, which were revealed to be the result of an error in writing by the Oklahoma Management and Enterprise Services (OMES).

ODMHSAS Misunderstanding

“There was miscommunication and misunderstanding,” Friesen admitted, highlighting the need for better coordination between the agencies involved.

As the Select Committee continues to investigate the circumstances surrounding the financial shortfall, lawmakers and mental health advocates are anxious for solutions that will stabilize and enhance mental health services across the state.


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