Oklahoma Mental Health Agency Faces $30M Deficit, Urgent Reforms

The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) is facing a nearly $30 million budget shortfall for fiscal year 2025, as revealed in a financial report by accountant David Greenwell, appointed by Governor Kevin Stitt. The report highlights significant financial mismanagement, including billing errors, fraud, and outdated accounting systems, and recommends 52 changes to improve financial accountability and service delivery. Key recommendations include hiring a chief financial officer and internal auditor with public sector experience, updating ethical guidelines, adopting modern accounting systems, and expanding staff training. Greenwell emphasized that the department is not permanently broken, but requires intentional procedural adjustments to restore financial stability and continue serving vulnerable Oklahomans. The Legislature has previously granted supplemental funding, but the agency's full budget needs remain uncertain amid ongoing financial instability and operational challenges. The report also stresses strengthening internal controls and improving transparency to better protect patient data and billing integrity.