Lawmakers still seeking answers in Mental Health Department budget shortfall

Despite another hearing at the state Capitol, lawmakers say they still lack critical answers about the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) budget shortfall, which could soon impact payroll and services.

Unanswered Questions Linger

Sen. Paul Rosino (R-Oklahoma City) said lawmakers are still struggling to get clarity.

“We don’t have a whole lot of information again. We didn’t get a whole lot of answers today,” Rosino said. “We’re coming down to crunch time, which I said last week.”

The committee has been probing how the agency reached a potential $150 million gap in provider reimbursements and whether those issues could jeopardize services to uninsured Oklahomans.

“It’s important to us that we’re providing service even to those that are uninsured,” Rosino said. “So we’re going to have to tamp down how to address pended payments.”

Optimism and Urgency

Rep. Mark Lawson (R-Sapulpa) struck a more hopeful tone but acknowledged the gravity of the situation.

“I’m trying to be an optimist in all of this situation,” Lawson said. “The budget shortfall that’s been reported and the whole reason for us being here is part of what has brought this up.”

He emphasized the human impact of potential service disruptions.

“What we don’t want to see is crisis to go untreated and folks to go harm themselves, harm other people, and wind up in the justice system,” Lawson said. “It’s an opportunity for us to get some clarity to pended payments and establish that moving forward.”

Supplemental Funding Likely

Rosino indicated a special appropriation is likely needed, but details remain scarce.

“I’m still concerned whether or not they need a whole lot of money or they just can’t find it,” he said. “This is a large agency that gets all kinds of money — federal money, grants, state money, state-appropriated dollars.”

“Yes — there’s probably gonna be a supplemental where we need a further appropriation,” he added. “If the Governor requests it, then the appropriations team would get together and there would have to be some JCAB bill that we would have to vote on and approve.”

Focus on Employees and Services

Lawson stressed the importance of supporting both state employees and the vulnerable Oklahomans they serve.

“We care about our state employees that are out there working very hard in this space,” he said. “We’re gonna make sure they get paid.”

The legislature is also working to determine the final amount needed to address the delayed payments.

“With regard to pended payments and what that amount would be — we’ll just have to negotiate that between the two chambers,” Lawson said.

State CFO: Payroll Shortfall Is Real

Aaron Morris, CFO for the State of Oklahoma, told lawmakers that addressing immediate payroll needs is the top priority.

“Our initial focus is how do we deliver to the legislature a ’25 supplemental ask as quickly as possible and then turn our focus on ’26,” Morris said.

He confirmed that the department will need help to cover payroll through the end of the fiscal year.

“The agency needs a supplemental for payroll,” he said. “By the end of the fiscal year, yes, they will need the supplement due to growth in that line.”

Moving Forward

Rosino said while the new mental health commissioner has only been in office a week, quick action is necessary.

“It would be pretty urgent for us to move pretty quickly once we do have a number,” he said.

Lawmakers and state officials are expected to continue working through the budget complications in the coming days as they seek to stabilize the department and ensure uninterrupted mental health care.