Report: Oklahoma Mental Health Agency Facing Nearly $30 Million Budget Hole
- The state agency responsible for mental health and substance use programs in Oklahoma is facing a budget deficit of nearly $30 million needed to cover expenses through the end of the 2025 fiscal year on June 30.
- This financial crisis stems from a legacy of questionable spending, Medicaid transitions, and increased personnel costs, with some blame on current and previous administrations appointed by Governor Stitt.
- An audit conducted by CPA David Greenwell found that payroll expenses have increased by 50%, contracted professional services costs have tripled since 2014, and the department began fiscal year 2025 running a deficit after allocating $9.4 million intended for FY 2025 toward expenses from FY 2024.
- The audit issued 52 recommendations, including hiring a qualified CFO with public sector experience, adopting modern accounting systems, and strengthening internal financial controls to improve patient care and fiscal integrity.
- The report prompted calls for a full financial audit and signals a critical phase where the department must implement reforms over 18 months to restore fiscal health and service quality.
11 Articles
11 Articles
Mental health department has ‘glaring’ issues, Oklahoma state auditor reports
OKLAHOMA CITY — A growing number of high-dollar executive hires and “questionable spending” on a Super Bowl commercial and Narcan machines have contributed to the financial disarray at the state’s mental health department, the state auditor reported Tuesday.
Report: Mental Health Department employees were 'discouraged' from cooperating with audit
Inexperienced administrators, unexpected Medicaid costs and sharply higher personnel expenses are among the reasons cited Tuesday by the Oklahoma Auditor and Inspector's Office for the financial quagmire at the Department
Audit reveals mismanagement in Oklahoma Department of Mental Health and Substance Abuse Services
The Oklahoma Department of Mental Health and Substance Abuse Services is under investigation following a state audit revealing financial mismanagement and leadership concerns.


Oklahoma mental health agency must mitigate risks to patients as deficit grows to $30M
OKLAHOMA CITY — The state’s mental health agency faces billing errors, fraud and information technology vulnerabilities in delivering services, an initial financial examination found.
State Auditor releases part of audit into Oklahoma Mental Health Department
State Auditor Cindy Byrd released the first part of her audit into the Oklahoma Department of Mental Health and Substance Abuse (ODMHSAS). The audit was done at the request of Governor Kevin Stitt after concerns arose surrounding funding at the department. This report is a financial analysis to estimate the short-term needs of ODMHSAS. It is not the final investigative audit report, said Auditor Byrd. However, even this abbreviated version revea…
Report: Oklahoma mental health agency facing nearly $30 million budget hole
OKLAHOMA CITY (KFOR) – An initial financial report called for by Oklahoma's governor says the state's mental health agency faces numerous errors and a nearly $30 million budget shortfall. In early May, Governor Kevin Stitt announced a series of steps to stabilize the Oklahoma Department of Mental Health and Substance Abuse Services amid ongoing issues with public confidence, transparency and financial and operational mismanagement. Governor Stit…
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