Nearly 2,000 state employees receive email alerting them payroll won't be issued next week

Yahoo

03-05-2025

OKLAHOMA CITY (KFOR) — A shocking email was sent to employees of the Oklahoma Department of Mental Health and Substance Abuse on Thursday, notifying them about an upcoming payroll shortfall.
The email read in part, '…They have insufficient funds available to make payroll for Wednesday (May 7) and are $23 million short for the remainder of FY25 (Fiscal Year). This is the first we have heard from the agency about being unable to make payroll.'
RELATED: House Committee grills ODMHSAS Commissioner on missing $43 million
Also in the email, Commissioner Allie Friesen confirmed the information was accurate.
'So the reality of our situation is that it's chaotic,' said Commissioner Friesen in April.
The remark was made after Commissioner Friesen was grilled about the missing $43 million from the ODMHSAS budget.
The Oklahoma Legislative Office of Fiscal Transparency (LOFT) discovered money was missing after digging into the agency's books.
'I believe the agency does need a new budget, one that reflects reality,' said Regina Birchum, Executive Director of LOFT.
Gene Blankenship, the Deputy Director of the Oklahoma Public Employees Association, was appalled.
'I've not seen a state agency have an issue like this before to where employees wake up to news that they may not receive a paycheck,' Blankenship said.
RELATED: LOFT shares findings of Dept. of Mental Health investigation with lawmakers
Also adding, 'I'm thinking about the majority of folks that live paycheck to paycheck. I'm thinking about those that pay rent.'
News 4 reached out to Commissioner Friesen's office for comment and received a statement back.
ODMHSAS will be making payroll as scheduled.
ODMHSAS continues to partner with our legislative and executive partners to ensure no disruption to services or operations. This administration continues to demonstrate our philosophy of uncovering problems and partnering with appropriate stakeholders to fix them in a meaningful way.
Our leadership team remains boldly focused on righting the wrongs within a system that has desperately required reform for decades. We are insistent on radically shifting the culture of the agency to allow for transformation into a mental health system that is focused on excellence across all divisions.
Oklahomans rely on us in some of their most vulnerable moments and must have 100% confidence in our system. In order for us to become a highly reliable organization, we are forced to unearth and repair the pieces of our system that have been neglected for far too long.
As we often see at the federal level, identifying and addressing dysfunction within our systems is a critical step toward lasting improvement—and Oklahomans should feel encouraged that these long-standing issues are finally being confronted. They are being resolved in a way that will ensure stability for decades to come, reinforcing confidence in the availability of high-quality mental health and substance use services.
Maria Chaverri, Communications Coordinator, ODMHSAS
News 4 was notified by the agency late Friday afternoon, confirming employees will be paid on time, despite the prior email stating payroll would be missed. However, we did not get an explanation of where the money is coming from.
Oklahoma Attorney General Gentner Drummond released a statement, demanding that Commissioner Allie Friesen be terminated.
The financial meltdown at the Department of Mental Health and Substance Abuse Services is nothing short of government malpractice. The agency serves many of our most vulnerable citizens who are wholly reliant on these services, and these Oklahomans deserve agency leadership capable of meeting their needs.
Gov. Stitt should have fired his failed agency head months ago when we first learned of her incompetent leadership. I am calling on Gov. Stitt to immediately terminate Commissioner Allie Friesen and seek guidance from industry experts so he can appoint a new leader who is up to the job.
Attorney General Gentner Drummond
Governor Kevin Stitt announced a series of actions to address ODMHSAS in a letter to House Speaker Kyle Hilbert and Senator Lonnie Paxton. See part of the letter below.
The troubling issues that have continued to emerge at the Oklahoma Department of Mental Health and Substance Abuse Services are the result of years of mismanagement—these challenges did not arise overnight. When I appointed Commissioner Allie Friesen, I specifically charged her with shining a light on the agency, rooting out longstanding problems, and building a more accountable and transparent department. What we are seeing now is the necessary, if painful, result of that mission being carried out with integrity and urgency.
Governor Kevin Stitt
The Governor has also outlined three immediate actions to stabilize ODMHSAS operations to ensure long-term reform:
A nationally respected, independent financial expert will be brought in to take temporary control of the department's finances. This expert will assess the agency's financial shortfall and produce an accurate and credible supplemental budget request for the Legislature.
As previously announced, the Governor will name a well-regarded attorney with experience in complex investigations to conduct a full and independent review of ODMHSAS. The investigator will report directly to the Governor's Office and will have full authority to follow the facts wherever they lead.
The Governor has directed Oklahoma Healthcare Authority CEO Ellen Buettner, along with ODMHSAS officials, to conduct a top-to-bottom review of all Medicaid and federally funded functions within the agency. This effort will evaluate whether these responsibilities should be administered by a different agency or in a different manner to ensure greater accountability and efficiency.
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