Hays County Agency Reports $451K Budget Shortfall Amid Growth and Financial Updates

During a recent meeting in Hays County, officials discussed significant financial challenges and operational changes affecting local mental health services. The meeting, held at First State Bank in Uvalde, highlighted a $451,000 shortfall in agency finances, primarily due to delayed reimbursements from funding sources and the closure of 14 group homes previously operated in the Ketchma area. This transition to private management has resulted in a million-dollar deficit over the past fiscal year, although officials noted that this would no longer impact the budget after September.

Despite these challenges, the agency reported a healthy investment portfolio valued at nearly $10 million, allowing for 137 days of operation without incoming revenue. The budget has seen substantial growth, increasing from $39 million to approximately $80 million over the past seven years, reflecting the agency's expanding role across 19 counties.

Key revenue sources include $37 million from contracts, $2.5 million from Medicaid, and over $33 million from grants, contributing to a total projected revenue of over $79 million for the fiscal year. However, salaries and employee benefits account for a significant portion of expenditures, totaling over $39 million.

In addition to financial discussions, the meeting addressed ongoing disaster outreach efforts in response to recent flooding in the region. Officials emphasized the importance of supporting communities, particularly in smaller counties with limited populations but vast land areas. The meeting underscored the agency's commitment to adapting to financial realities while continuing to serve the mental health needs of Hays County and surrounding areas.