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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.
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oklahomavoice.com broke the news in on Monday, May 19, 2025.
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