OKLAHOMA CITY, OK — A dramatic financial crisis has erupted at the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS), raising concerns about the agency’s ability to function, prompting backlash from state officials, and resulting in urgent calls for leadership changes.
Late Thursday, an internal email was sent to state legislators revealing that the agency was unable to make its upcoming payroll for Wednesday, May 7, and was facing a $23 million shortfall for the remainder of the 2025 fiscal year. The revelation stunned lawmakers, as the agency had not previously indicated any imminent payroll problems.
“This is the first we have heard from the agency about being unable to make payroll,” the email read.
The financial warning followed earlier scrutiny of the department’s budget after the Oklahoma Legislative Office of Fiscal Transparency (LOFT) discovered a $43 million discrepancy. The agency’s financial status had been under increased examination since April, when Commissioner Allie Friesen was questioned about the missing funds during a public oversight session.
“So the reality of our situation is that it’s chaotic,” Friesen said at the time, acknowledging serious challenges within the department.
In response to Thursday’s email, Gene Blankenship, Deputy Director of the Oklahoma Public Employees Association, expressed deep concern over the potential impact on 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,” Blankenship said. “I’m thinking about the majority of folks that live paycheck to paycheck. I’m thinking about those that pay rent.”
However, by late Friday, ODMHSAS issued a statement assuring that all employees would, in fact, be paid on time. Despite this, the agency did not provide specifics about how the payroll funding was secured.
“ODMHSAS will be making payroll as scheduled,” read a statement from Communications Coordinator Maria Chaverri. “We continue to partner with our legislative and executive partners to ensure no disruption to services or operations.”
The agency framed the crisis as part of a broader reform effort, claiming it was committed to uncovering systemic problems and making long-term improvements.
“Our leadership team remains boldly focused on righting the wrongs within a system that has desperately required reform for decades,” the statement added.
But the assurances did little to quell the growing controversy. On Friday evening, Oklahoma Attorney General Gentner Drummond issued a scathing rebuke of Commissioner Friesen and called for her immediate dismissal.
“The financial meltdown at the Department of Mental Health and Substance Abuse Services is nothing short of government malpractice,” Drummond said. “Gov. Stitt should have fired his failed agency head months ago… I am calling on Gov. Stitt to immediately terminate Commissioner Allie Friesen and seek guidance from industry experts.”
As of Sunday, Governor Kevin Stitt has not publicly responded to the attorney general’s demand.
The crisis at ODMHSAS has exposed deep cracks in the agency’s oversight and budgeting processes, raising alarms about accountability in the state’s mental health infrastructure—particularly as it impacts some of Oklahoma’s most vulnerable citizens.
With state leaders now divided over the path forward, questions remain about how the agency fell into such disarray, where the missing funds went, and whether current leadership can restore trust and stability.
