OKLAHOMA CITY, OK — The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is at the center of a growing controversy after an internal email sent to legislators on Thursday revealed the agency was unable to make payroll for the upcoming week and is facing a $23 million budget shortfall for the remainder of the fiscal year.
The email, which sent shockwaves through the State Capitol, stated, “They have insufficient funds available to make payroll for Wednesday (May 7) and are $23 million short for the remainder of FY25 (Fiscal Year). This is the first we have heard from the agency about being unable to make payroll.” The message was reportedly confirmed as accurate by ODMHSAS Commissioner Allie Friesen.
The revelation follows a broader financial investigation by the Oklahoma Legislative Office of Fiscal Transparency (LOFT), which uncovered a $43 million discrepancy in the department’s budget. LOFT Executive Director Regina Birchum said the agency’s finances are out of step with reality.
“I believe the agency does need a new budget, one that reflects reality,” Birchum stated.
In April, Commissioner Friesen acknowledged the turmoil within her agency, describing the situation as “chaotic” during a tense legislative hearing.
The reaction from state employee advocates has been one of disbelief and alarm. Gene Blankenship, Deputy Director of the Oklahoma Public Employees Association, voiced deep concern for ODMHSAS workers.
“I’ve not seen a state agency have an issue like this before to where employees wake up to news that they may not receive a paycheck,” said Blankenship. “I’m thinking about the majority of folks that live paycheck to paycheck. I’m thinking about those that pay rent.”
Despite the internal warning, ODMHSAS released a public statement late Friday afternoon assuring that employees would, in fact, be paid on time. The agency, however, did not provide any clarity on where the funds would come from.
The statement, issued by Communications Coordinator Maria Chaverri, positioned the crisis as part of a larger reform effort.
“Our leadership team remains boldly focused on righting the wrongs within a system that has desperately required reform for decades,” the statement read. “These long-standing issues are finally being confronted… and resolved in a way that will ensure stability for decades to come.”
The agency emphasized its ongoing collaboration with legislative and executive partners to prevent service disruptions and stabilize operations.
But the assurances have done little to stem the criticism. On Friday, Oklahoma Attorney General Gentner Drummond called for Commissioner Friesen’s immediate termination, labeling the agency’s financial mismanagement as “government malpractice.”
“The financial meltdown at the Department of Mental Health and Substance Abuse Services is nothing short of government malpractice,” Drummond said in a statement. “These Oklahomans deserve agency leadership capable of meeting their needs. Gov. Stitt should have fired his failed agency head months ago… I am calling on Gov. Stitt to immediately terminate Commissioner Allie Friesen.”
As the state grapples with the implications of the budget shortfall and potential leadership shakeup, questions remain about how the agency will recover the missing funds—and restore public trust in a system serving some of Oklahoma’s most vulnerable residents.
