State leaders are reacting to news that the Oklahoma Department of Mental Health and Substance Abuse Services may not be able to make payroll later this month.

“On March 31, the House was told that the agency would not have a cash flow issue before the end of the legislative session,” said House Speaker Kyle Hilbert, of Bristow. “However, last night I was informed by the Commissioner that they would be unable to meet basic payroll obligations beginning next week.”

Speaker Hilbert says the House has no faith in the current fiscal position of the department.

On Friday afternoon Oklahoma Attorney General Gentner Drummond released the following statement:

“Gov. Stitt should have fired his failed agency head months ago when we first learned of her incompetent leadership, said Drummond. “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.”

Commissioner Friesen testified last month the agency needed another $6 million dollars to get through the fiscal year, but this week there have been reports that number might be higher.

Friday afternoon, Oklahoma Governor Kevin Stitt said he would be taking further action to stabilize ODMHSAS.

“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.” Gov. Stitt said in a letter to state lawmakers.

The letter outlines three immediate actions the Governor’s office will take to stabilize ODMHSAS operations and ensure long-term reform:

1. 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.

2. 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.

3. 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.