Mental Health Update

Governor Hochul introduced her annual budget today at 1PM. The overall budget comes in at $260 billion (all funds), a .7% increase over previous fiscal year.

We will do a deep dive later this week, but here are a few of the highlights:

• 1.7% Targeted Inflationary Increase (formerly the COLA).  This year’s CPI is 2.7%, leaving it to the Legislature in consultation with the Governor to close the 1% gap and ensuring the human services sector gets that 1 percent increase.  As we have done in the past, we will do everything in our power to close that gap.  Our workforce and providers are the heart and soul of our work and without them, our behavioral health system would collapse. For Mental Hygiene agencies, the Targeted Inflationary Increase provides an additional $162.2 million ($268.4 million including Federal matching funds) for OPWDD, OMH, and OASAS programs in FY 2027.
• $17.5 million for Teen and Youth Mental Health First Aid. The Governor’s commitment to training every tenth grader in New York State on Teen and Youth is groundbreaking. As the Budget book states this is an investment to “equip an entire generation with Mental Health First Aid Training.” It is incredible to have the vision that she has displayed in this area recognizing that the peer to peer model is essential to changing the climate for youth mental health.
• $1 million for a First Responder Behavioral Health Center of Excellence. This Center recognizes that the key to supporting each other’s mental health comes from a peer. The funding is to support the development of culturally appropriate behavioral health programming and supports comprised of resource networks, training, and technical assistance through a peer-led model that is accessible to emergency response agencies across the state.
• $100,000 for the School of Distinction in Prevention Designation – New York State Office of Mental Health will develop this distinction to recognize schools that meet key benchmarks in mental health and substance use prevention. The ten selected schools will “receive technical assistance and implementation grants to respond to the youth in mental health crisis.”
• $500,000 to designate two additional Youth Safe Spaces
• $250,000 for Guided Recovery Action through Congregational Engagement, which will be used to develop resources tailored to faith-based leaders to help them recognize the signs of substance use disorder, reduce stigma, and connect individuals and families to care.
• 15 new youth clubhouses by OASAS
• OASAS to host youth-led symposium to promote peer-led engagement for young people around the dangers of substance use and the availability of community-based resources.
• Funding to establish the Gambling Addiction Workforce Institute to integrate gambling peer and supportive services into recovery and outreach centers, and conduct a 10-year study to assess trends in the impact of gambling.
• Legislation to “ensure insurance coverage for treatment of all addiction disorders.”
• Integration of Behavioral Health Services – New York State OMH and OASAS will develop a new Co-Occurring Capable (CoC) designation to help individuals identify the providers that will best meet their needs.

Minimum Wage

• The Executive Budget invests an additional $53.5 million in State funds to support minimum wage increases for staff at programs licensed, certified, or otherwise authorized by OPWDD, OMH, and OASAS. OMH and OASAS Supportive Housing Programs.
• The FY 2027 Executive Budget invests over $71 million to increase rates for OMH and OASAS housing programs to help ensure that residential providers have sufficient resources to maintain housing capacity for these populations to support recovery and avoid more costly emergency room visits and inpatient care.

Notable Absences

• Carve Out of OMH/OASAS Services from Medicaid Managed Care – MHANYS is appointed the budget did not include provision to carve OMH and OASAS community-based behavioral mental health and substance use services out of Medicaid Managed Care and back into fee-for-service. Removing these services from Medicaid Managed Care would generate upwards of $400 million for the community-based system that is under tremendous stress amidst the mental health crisis and providers facing workforce challenges, including 20%-30% vacancy rate and a 25% annual turnover on average, as well as rising operational and programmatic costs. The track record of the managed care companies is quite clear with over 300 citations issued by state regulators against the managed care companies since 2019 and survey data from providers confirming protracted delays in being reimbursed and staff time and resources spent on administrative red tape.
• No blue ribbon panel on psychiatric hospital facility redevelopment