MHANYS and ten other statewide mental health and human services advocacy groups and not-for-profits held a press conference today at the State Capitol urging the final state budget include a 7.8% targeted inflationary increase without restrictions. Asm. Simon, Chair of the Assembly Mental Health Committee, joined representatives from each of the organizations to echo the urgency and need for this funding as budget negotiations get under way. #WeCan’tWaitfor7.8%
For Immediate Release
Contact: Glenn Liebman, CEO, MHANYS
518-360-7916
gliebman@mhanys.org
March 18, 2025
Press Release
Behavioral Health Advocacy Organizations Respond to Targeted Inflationary Increase in One-House Budget Proposals
Statewide Advocates Asking for 7.8% Targeted Inflationary Increase, without contingencies, in final budget for Mental Health and Substance Use Disorder Services and Supports
(Albany, N.Y.) – Eleven statewide advocacy groups will host a press event in Albany to ask the Legislature and Governor Hochul to include a 7.8% targeted inflationary increase, without restrictions and using current state compliance processes, for mental health and substance use disorder services in the final enacted NYS SFY 2025-2026 budget.
The press event will be held in Albany on Tuesday, March 18th at 10:00am at the NYS Capitol Building, Senate Staircase, 3rd Floor, (down the hall from LCA).
The group sent a statement on the Senate and Assembly one-house budget proposals here.
Advocates were pleased that the Senate and Assembly’s one-house budget proposals made it a priority to support a 7.8% Targeted Inflationary Increase (TII), a significant increase from Governor Hochul’s proposed 2.1% TII for mental health and substance use disorder services and supports. On behalf of the hundreds of thousands of New Yorkers who currently receive mental health and/or substance use disorder services through the state’s public mental hygiene systems, as well as the increasing number of New Yorkers who are unable to access care, advocates are calling for a 7.8% TII in the final SFY 2025-26 enacted budget, without any contingencies other than the state oversight and attestation process already in place.
The New York State Office of Mental Health (OMH) and the Office of Addiction Services and Supports (OASAS), as the oversight and licensing agencies, are responsible for the compliance of community-based organization’s implementation of targeted inflationary increases by requiring an attestation form, confirming how the funds were used or will be used, including wage increases and enhancements given to staff. This legal process has demonstrated efficiencies and effectiveness while allowing flexibility to support workforce wage increases and enhancements, as well as the overall operations of mental health and addiction service community-based organizations.
New Yorkers continue to experience long waiting periods to access mental health and substance use disorder services through New York’s community-based continuum of care while demand is at an all-time high. Further, mental health and addiction prevention, treatment recovery and harm reduction agencies struggling with inflationary costs such as transportation, utilities, food, etc. are experiencing a statewide 20% – 30% job vacancy rate based on program type and 35% turnover rate.
New York must make meaningful investments, such as the 7.8% targeted inflationary increase to close treatment gaps, eliminate disparities, and improve access to services by investing in both the behavioral health workforce and addressing inflated operating expenses that service providers are struggling to pay.
“We thank the Legislature for recognizing the urgent need to invest in mental health and substance use services by including a 7.8% rate enhancement in their one-house budgets,” said Luke Sikinyi, Vice President of Public Policy of the Alliance for Rights and Recovery. “Without a stable workforce, people seeking support are forced to repeatedly rebuild trust with new providers, disrupting their recovery and retraumatizing them over and over again. This investment is not just for agencies—it’s for continuity, stability, and the dignity of those relying on these essential services. Now, we must ensure it remains in the final budget.”
“We are grateful both the Assembly and Senate included a 7.8% Targeted Inflationary Increase in their one house budget bills, building on the Governor’s proposal of 2.1%. Just like every other household in New York State, providers of OMH residential programs are facing increases in the costs of food, utilities, insurance, and other expenses. With a current 30% staff vacancy rate we also are dealing with a workforce crisis. Our hope is the Governor and legislature reach a final budget agreement that includes the full 7.8% increase so we can continue to provide residential and recovery services that allow a person residing in our programs the best opportunity to live in and contribute to their community,” said Doug Cooper, Interim Executive Director of the Association for Community Living.
“Overdose deaths due to fentanyl continue at crisis levels in New York. There is an urgent need to expand access to effective treatment,” said Allegra Schorr, President of the Coalition of Medication Assisted Treatment Providers and Advocates (COMPA). “Unfortunately, reimbursement to providers has not kept pace with inflation. There is a gaping hole between reimbursement and the cost of sustaining services. Program staff are overworked and underpaid, staff vacancies are currently 20% – 30% depending on provider type, and overall costs have increased significantly. Providers’ ability to respond to the opioid crisis is severely hampered. A 7.8% investment in behavioral health care will allow providers to keep pace with rising costs and help them to address the crippling workforce shortage. This is essential to help providers increase access to treatment and reduce barriers for delivering care.”
“We appreciate the Senate and Assembly putting forward a 7.8% inflationary rate increase that reflects the true cost of inflation over the past three years. For New York’s families and young people, this represents a meaningful step towards access to community behavioral health services. It means a service experience without endless calls to programs that have paused intakes or the frustration of long waitlists. It means continuity of care, reducing the trauma of repeatedly retelling their stories when workers leave due to unfair wages. It ensures programs operate smoothly in well-maintained buildings. Ultimately, this investment strengthens our entire society, benefiting those who rely on these services, the professionals who provide them, and the communities that thrive when individuals reach their full potential. Therefore, we call on the Governor, the Senate and the Assembly to enact a 7.8% increase to behavioral health service rates and contracts for both operational costs and staffing this year,” said Paige Pierce, CEO, Families Together in New York State.
“While the Governor’s historic $1 billion commitment to mental health was a step forward and is appreciated, existing programs are struggling to stay afloat—let alone apply for the new funding. Substance use disorder programs were also largely not included. Many of these programs remain financially unsustainable, and service providers must rely on patchwork programs to fill the gaps. Without stabilization, these services are at risk, jeopardizing already limited access to care. New York must invest in ongoing, comprehensive funding to ensure that life-saving substance use disorder and mental health services remain available to all who need them. We are calling for a 7.8% inflationary increase to protect and preserve access to care, especially as there are uncertainties around federal funds,” said Debbian Fletcher-Blake, APRN, FNP, President & Chief Executive Officer, VIP Community Services, InUnity Alliance Board Chair
“We thank the Senate and Assembly for recognizing the need to build on the Governor’s 2.1% targeted inflationary increase for a total of a 7.8% for community-based, behavioral health not-for-profits in their one house budgets,” said Glenn Liebman, CEO of MHANYS. “As the budget negotiations enter the next phase, it is critical that the Governor and Legislature heed the call of these providers and those they serve on the dire need to receive an unencumbered 7.8% that supports wage increases but also covers rising inflationary pressure programs face such as higher utility costs, health insurance, and other operational costs. As these providers contend with staff vacancy rates of 20-30% and turnover rates of 35% and unprecedented demand for services, this investment is the bare minimum needed to sustain services the communities rely on and the state would otherwise have to provide.”
“NAMI-NYS is proud to care for those who care for us and stand beside our dedicated community providers of mental health services. The inability to sustain the mental health workforce has led to many New Yorkers’ struggling to access the services and supports they need to advance their recovery. This is a personal issue for me, as I have had to see my loved ones moved to different parts of the state to access care. This is why NAMI-NYS urges New York to break down one of the leading barriers to access and build a bridge towards care by providing a 7.8% increase for community providers,” said Nathan McLaughlin, Executive Director, NAMI-NYS.
“Our care management agencies continue to provide front-line services and support to adults, children and families, with mental health and substance use disorder needs, often in crisis. The proposed 7.8% inflationary increase, as included in the Senate’s one-house budget proposal, must include health home care management and remain in the enacted SFY 2025-26 budget. An increase will allow programs to meet inflationary costs, invest in their workforce and continue to support essential care management to those most in need,” said Jackie Negri, Executive Director, NYS Care Management Coalition.
“The NYS Coalition for Children’s Behavioral Health thanks the Senate and the Assembly for including meaningful investments in mental health services in their one house budget proposals. We appreciate that both Houses include a 7.8% targeted inflationary increase, which will enable human services providers to support our workforce and fortify programs suffering from decades of disinvestment. We also thank both Houses for including investments specifically in children’s behavioral health services, and we look forward to working with all parties to strengthen our child-serving system,” said Kayleigh Zaloga, President & CEO of the NYS Coalition for Children’s Behavioral Health.
“Community-based, substance use disorder and mental health providers are struggling to remain financially viable and to recruit and retain the essential staff they need to meet increased demand for care in local communities across the state. We strongly commend both the Assembly and Senate for prioritizing our needs in their one-house budget bills by providing a 7.8% Medicaid Inflationary Rate Increase. We also thank the Governor for initiating this important investment in the future of our systems of care. To be clear, we share the goals of lawmakers to ensure that staff providing direct care to New Yorkers are prioritized with these investments, however it is critical for a 7.8% Medicaid Rate increases to be enacted in the final budget that is flexible to permit providers to utilize funds based on the unique needs of their programs and services, and ultimately their communities,” said Lauri Cole, Executive Director, NYS Council for Community Behavioral Healthcare.
“We are encouraged by the strong support that the legislature has demonstrated in their one-house budgets, adding 7.8% to contracts will substantially relieve the overwhelming pressure that our non-profit supportive housing providers are facing daily. We are particularly grateful to the Senate including the New York State Supportive Housing Program in 7.8% this year. We call on the governor to agree,” said Pascale Leone, Executive Director, Supportive Housing Network of New York.
The eleven agencies represented at the rally are: Association for Community Living, Coalition of Medication-Assisted Treatment Providers and Advocates of New York State (COMPA), Families Together in New York State, InUnity Alliance, Mental Health Association in New York State, National Alliance on Mental Illness New York State (NAMI), New York State Care Management Coalition, New York State Coalition for Children’s Behavioral Health, NYS Council for Community Behavioral Health Care, Alliance for Rights and Recovery, and Supportive Housing Network of New York
