The Oklahoma Department of Mental Health and Substance Abuse Services faced a severe financial crisis, unable to make payroll for May 7, with the agency $23 million short of funds for the remainder of fiscal year 2025. House Speaker Kyle Hilbert disclosed the issue in a late-night email to House members on May 1, stating “This is the first we have heard from the agency about being unable to make payroll,” despite having specifically asked Commissioner Allie Friesen about potential cash flow issues in a meeting on March 31. Friesen confirmed she was first made aware of the payroll shortfall on April 30 after 3 p.m.
In response, Friesen said the agency was working with lawmakers and the governor’s office to ensure it could continue providing services and retain staff. “This process, while challenging, is essential to strengthening financial systems, improving oversight, and ensuring operational integrity,” she stated. The Office of Management and Enterprise Services, which handles payroll for state agencies, indicated it was working closely with the mental health department and would assist if needed, though formal requests had not yet been made.
Legislative frustration mounted as the agency had not yet submitted its proposed budget for fiscal year 2026. Friesen had previously testified before a special committee investigating the department’s finances, describing inheriting a “chaotic” agency after being appointed commissioner in January 2024. She told lawmakers in April that the agency faced a $43 million deficit. During a meeting on April 29, Friesen and the agency’s budget team proposed shrinking the financial deficit to $6.3 million, but the presentation left many legislators’ questions unanswered. House Majority Leader Mark Lawson received the payroll shortfall notification on May 1, and House Speaker Hilbert said the committee would invite Friesen to testify further in a public environment.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.oklahoman.com/story/news/politics/2025/05/02/oklahoma-department-mental-health-substance-abuse-services-cant-make-payroll/83410042007/