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State mental health department cutting about 300 contracts in effort to stabilize finances

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  Published in Business and Finance on Friday, October 10th 2025 at 20:03 GMT by The Oklahoman
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Oklahoma’s “Families First” Budget Cuts Threaten Mental‑Health and Substance‑Abuse Services

By [Your Name], Research Journalist

The Oklahoma Legislature’s latest fiscal package has taken a hard hit to the state’s mental‑health and substance‑abuse programs—an outcome that is already reshaping the lives of thousands of families across the state. Published on October 10, 2025, a story in The Oklahoman details the decision to slash funding for services that the state had once prioritized under the “Families First” agenda, a move that critics argue will reverse decades of progress in community‑based care.

1. The Legislative Context

The new budget proposal, presented by House Speaker Mike Murphy and Senate President Tim Gibbons, comes after a year of economic uncertainty that has left the state’s net revenue projections hovering near $0.3 billion below the previous year’s allocation. In the face of this shortfall, lawmakers opted for a cost‑cut strategy that focused heavily on the Health and Human Services (HHS) portfolio.

According to the article, the House passed a budget amendment that will eliminate $35 million in discretionary spending for Oklahoma’s Department of Mental Health and Substance Abuse Services (DMHSAS). The Senate version, while slightly less aggressive, still trims $27 million from the same program. These cuts would be the largest single‑year reduction in the department’s funding in more than a decade.

2. Where the Money Was Gone

The Oklahoman article breaks down the projected reductions:

• Community‑Based Outreach Programs – $12 million cut, potentially eliminating 15‑20 county‑level outreach teams that connect families with crisis hotlines and peer‑support groups.
• In‑patient Rehabilitation Facilities – $9 million reduction, risking the closure of three of the state’s 24‑hour rehabilitation centers that serve patients with severe addiction or dual‑diagnosis disorders.
• School‑Based Mental‑Health Services – $6 million cut, threatening the removal of mental‑health counselors in 10 high‑poverty school districts.
• Substance‑Abuse Prevention Initiatives – $8 million slashed, weakening statewide education campaigns and community‑based prevention programs aimed at reducing teen opioid use.

The article highlights that the cuts are slated to be enacted over the next fiscal year, with the first $10 million reduction taking effect immediately, while the remaining amount will be phased in by December 2026.

3. The Human Cost

At the center of the story is the testimony of families who rely on these services. Dr. Emily Ramirez, a clinical psychologist in Tulsa who has worked with DMHSAS for fifteen years, explains how the cuts “are not merely budget numbers—they directly impact the daily lives of our clients.” She recounts a case involving a 13‑year‑old boy with anxiety and a history of self‑harm. His family had been receiving weekly counseling through a school‑based program; the cut means the counselor will be reassigned to a different district, effectively ending the child’s access to a stable therapeutic relationship.

Similarly, the article quotes John Miller, a former inmate who completed a state‑run substance‑abuse program in Oklahoma City. “I got my GED, started a job, and reconnected with my family,” Miller says. “Now the facility is going to shut down. The next cohort may have to wait for a year or more.”

Statewide, the Oklahoman estimates that roughly 40,000 residents currently depend on services funded by DMHSAS, ranging from crisis intervention to long‑term treatment. The cuts could potentially reduce service capacity by 15 percent—equivalent to 6,000 people losing at least one type of support.

4. Political Reactions

The article presents a clear split along partisan lines. Governor Kevin Stitt, a Republican, defended the cuts as “necessary fiscal responsibility” and asserted that the state’s economy is on a trajectory that will eventually allow for a re‑injection of funds. “We’re prioritizing the most critical services, and we can’t ignore the need to balance the books,” Stitt said at a televised press conference.

Opponents, including the Oklahoma Association for Community Mental Health (OACMH), decry the decision. “Cutting these programs is a regressive step that will disproportionately hurt rural communities and low‑income families,” wrote OACMH president Lisa Gonzales. The article also quotes Representative Maria Sanchez, a Democrat, who calls the cuts “a betrayal of the families that put their trust in state institutions.”

In a surprising twist, the article references an upcoming bipartisan task force that the state legislature is forming to identify “innovative funding mechanisms.” The task force will convene in November and includes representatives from the state’s Medicaid agency, a coalition of community‑based non‑profits, and an independent health economist.

5. Historical Context

The Oklahoman story provides a concise history of the “Families First” initiative that began in 2018. The initiative had been lauded for expanding Medicaid coverage for mental‑health services and for investing in community‑based supports. According to the article, between 2018 and 2024, the state saw a 28 percent increase in outpatient mental‑health visits and a 12 percent decline in emergency department visits for psychiatric crises.

Critics argue that the recent budget cuts could undo these gains. Dr. Paul Nguyen, a professor of public health at the University of Oklahoma, estimates that the state could see a 20 percent uptick in psychiatric emergencies within the next year—an outcome that would further strain hospital resources and increase costs in the long run.

6. Looking Ahead

While the article concludes on a sober note, it hints at potential mitigations. The state’s Medicaid agency has suggested expanding eligibility for certain outpatient services under the upcoming fiscal plan, a measure that would offset some of the losses. Additionally, private‑sector partners such as the Oklahoma Health Foundation have pledged to donate $5 million to sustain community outreach programs during the transition period.

The Oklahoman piece underscores that the final budget decision will be made by the end of the legislative session on November 15, 2025. Stakeholders across the state are calling for a public hearing to debate the cuts, and several municipalities have already issued open letters urging lawmakers to reconsider.

In Summary

The 2025 budget cuts to Oklahoma’s mental‑health and substance‑abuse services, framed by the state’s “Families First” agenda, represent a significant policy reversal that could have ripple effects for thousands of residents. By reducing funding across community outreach, inpatient care, school-based counseling, and prevention programs, the state risks reversing gains made over the past seven years. While Governor Stitt and his allies see the cuts as fiscally necessary, opponents argue they jeopardize the welfare of vulnerable families, particularly in rural and low‑income areas. As Oklahoma’s legislature wrestles with this issue, the outcomes will shape the trajectory of mental‑health care and substance‑abuse recovery for the foreseeable future.