LOFT Releases Report Outlining Budget Mismanagement at Department of Mental Health

Legislative leaders say findings validate leadership change, will guide ongoing oversight

OKLAHOMA CITY - A newly released report by the Legislative Office of Fiscal Transparency (LOFT) details numerous budgeting failures within the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS), confirming legislative concerns that led to a change in agency leadership earlier this year.

The investigation was initiated by Senate President Pro Tempore Lonnie Paxton, R-Tuttle, and House Speaker Kyle Hilbert, R-Bristow, on March 6 after the agency requested supplemental funding to sustain operations through the end of the fiscal year. Lawmakers say the report and recommendations will assist in getting more answers they weren’t getting in the ongoing joint House and Senate investigation.

The LOFT report found that poor budgeting practices and a lack of financial clarity contributed directly to the agency exceeding its budget.

Senate Pro Tem Paxton said the report validates the Legislature’s decision to remove the former director and reinforces the importance of strong financial oversight in agencies that provide critical services to Oklahomans.

“The LOFT report confirms the Legislature made the right decision in removing the former director responsible for the mismanagement at the Department of Mental Health,” Pro Tem Paxton said. “These were not isolated incidents. They reflect a broader failure to effectively manage an agency that serves some of Oklahoma’s most vulnerable citizens. I appreciate LOFT’s thorough and diligent work in bringing these issues to light. I’m confident that, with new leadership and the implementation of these recommendations, the agency can regain stability and refocus on its core mission. LOFT’s work gives us the transparency and insight needed to ensure mental health services are supported with integrity and fiscal responsibility.”

House Speaker Hilbert emphasized the role the LOFT findings will play in the Legislature’s continued investigation into the agency’s operations.

“This report is a critical piece in our joint House and Senate investigation into what went wrong at this agency and gives us a roadmap to improve budgeting practices not just at ODMH, but across all state agencies,” Speaker Hilbert said. “This report lays the foundation lawmakers need to make informed decisions moving forward and highlights the importance of sound financial practices in every state agency. I appreciate LOFT’s work in digging into this and the new leadership at the agency for providing answers during this investigation. These are critical services Oklahomans need, and we must get this right.”

Rep. Mark Lawson who serves as House Majority Leader and served as co-chair of the Select Committee to Review Mental Health Finances, said the report shows a broader need for increased transparency across all state agencies.

“When taxpayer dollars are involved, especially in agencies serving vulnerable populations, there must be a high level of transparency and accountability,” Rep. Lawson, R-Sapulpa, said. “This report highlights the dangers of poor executive oversight and reinforces the need for reforms to ensure lawmakers, and the public, can trust how agencies are managing their funds. I appreciate LOFT’s review of this matter, and I look forward to continuing our work with the select committee to ensure this never happens again.”

Sen. Paul Rosino, R-Oklahoma City, who currently chairs the Senate Health and Human Services committee and served with Lawson as co-chair of the select committee, praised LOFT’s thorough review and expressed confidence in the agency’s interim leadership.

“LOFT’s comprehensive work in uncovering the systemic issues that led to this financial mismanagement has shed a light that lawmakers were not getting answers to,” Senator Rosino said. “Since Admiral Slavonic stepped in as interim director, I’ve been in constant communication with him. I am confident in his efforts to right size the agency and return its focus to delivering vital mental health services efficiently and effectively. It is critical we get this right to build public trust and serve those in need.”