ODMHSAS Requests $6.2M Supplemental Appropriation to Sustain Essential Services

The Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) has submitted a formal request for a supplemental appropriation of $6.2 million for Fiscal Year 2025 to ensure a balanced budget and the continued delivery of essential behavioral health services across the state.


This request follows a comprehensive, agency-wide review of revenue streams and expenditures, including Title XIX Medicaid contracts, Value-Based Payments (VBP), the Enhanced Tier Payment System (ETPS), and operational efficiencies. The department’s thorough analysis has identified the additional funding needed to responsibly meet obligations while maintaining the quality and accessibility of care for Oklahoma’s most vulnerable populations.
“As a result of a top-to-bottom review, ODMHSAS has worked diligently to eliminate duplication, reduce inefficiencies, and streamline operations to create a more transparent and accountable budgeting process,” said Commissioner Allie Friesen. “While this process has been challenging, it has strengthened the department and positioned us to responsibly navigate the fiscal year ahead.”


Outlined below are the largest projected expenditures for the remainder of FY25:

• $6,677,361 – IT and software upgrades 

• $9,035,399 – Title XIX Medicaid match (March–June 2025)




• $35,489,000 – Enhanced Tier Payments for service providers (3 quarters)

• $4,201,764 – Value-Based Payments for service providers (3 quarters)




These costs reflect the department’s commitment to investing in modern infrastructure, sustaining provider networks, and ensuring quality outcomes for Oklahomans receiving mental health and substance use treatment services. 

“We remain committed to being responsible stewards of taxpayer dollars while ensuring every Oklahoman has access to the care they need,” said Commissioner Friesen. “This supplemental appropriation will help us achieve that goal.”