Under scrutiny, Oklahoma leader points finger for $43M deficit, contract cancellations

Oklahoma’s mental health department faces a $43 million deficit, and letters canceling some provider contracts were sent without the agency head’s knowledge, the agency’s commissioner said during a special legislative hearing Thursday.

Oklahoma lawmakers questioned Commissioner Allie Friesen for hours amid reports of financial disarray at the Oklahoma State Department of Mental Health and Substance Abuse Services and outrage over provider contracts being “cut” or “canceled.” She was one of 11 witnesses called by the committee to testify under oath.

Friesen, who was appointed by Gov. Kevin Stitt in January 2024, said her administration inherited a “chaotic” situation and former agency leaders failed to make proper budget requests of the Legislature, leading to financial shortfalls…

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