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With just weeks left in the legislative session, we are racing to finalize the state budget, an already tough task made more complicated by emerging financial issues at the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS).

Last month, legislators learned that ODMHSAS was in serious financial trouble. The agency had been using this year's funds to pay last year's contracts, raising concerns about its budgeting and management practices.

In response, the Select Committee to Review Mental Health Finances held its first meeting on April 17. Commissioner Allie Friesen testified that proposed cuts to substance use disorder programs were paused after the agency realized those cuts would threaten essential services. She reported a $43 million budget shortfall, though it’s unclear if that figure reflects the full extent of the issue.

Friesen was unable to answer many committee questions due to ongoing investigations led by the agency’s internal inspector general, Dewayne Moore, who has since resigned, raising further concern.

At a follow-up meeting, interim Chief Financial Officer Skip Leonard told lawmakers that when he assumed the role, he received no documentation explaining the agency’s budget process. He and Commissioner Friesen also said they didn’t know who made the decision to cancel several behavioral health contracts in the Tulsa area.

Some clarity came this week when Regina Birchum, director of the Legislative Office of Fiscal Transparency (LOFT), testified. She said ODMHSAS needs $6.2 million in additional funds to pay outstanding contracts, but $27.4 million of the original $63 million shortfall is still unaccounted for.

According to Birchum, the problem seems to be years of poor budgeting. She noted inconsistent practices in how the agency accessed funds, making it difficult to trace spending.

The situation worsened when, on Thursday, House leadership was told ODMHSAS couldn’t make its May 7 payroll. By Friday, the agency reversed course and said payroll would be met, but warned of a cash shortfall by May 21. This was surprising, as the agency had recently assured lawmakers that their budget was stable.

Legislators are now exploring solutions, including a possible emergency funding measure. With the session’s constitutional deadline of May 31 quickly approaching, lawmakers hope to sort out the situation so they can focus on passing the FY26 budget.

In the meantime, you can review the House and Senate budget proposals at okhouse.gov by clicking the “Budget HQ” button. This will take you to the Budget Transparency Portal, where you can compare last year’s funding with current budget requests and legislative positions.

As always, please feel free to reach out to my office with any questions or concerns about legislation. You can contact me at (405) 557-7358 or by email at john.kane@okhouse.gov.

John Kane, a Republican, serves House District 11 in the Oklahoma House of Representatives, which covers Tulsa and Washington counties.