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Highlands Community Services warns county of rising local-match pressures and state enforcement for behavioral health funding

3124010 · April 8, 2025

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Summary

The executive of Highlands Community Services told the Board that new emphasis on the state-required 10% local match and shrinking matching resources pose material risks to the agency's state funding and service delivery; she asked the board to note the county's current local-match shortfall.

Rebecca Holmes, who identified herself as representing Highlands Community Services (the regional Community Services Board), briefed the board on a set of state and federal funding and compliance risks that could affect service levels in Washington County.

Holmes said the Code of Virginia requires a 10% local match for certain state behavioral-health funding and that enforcement and waiver approval are tightening at the state level. She said the local share split between Bristol and Washington County is allocated by service proportion (Bristol 3%, Washington County 7% in the speaker’s description) and that Washington County’s current allocation for the CSB was reported in her remarks as approximately 2.5% (creating a shortfall from the expected 7%). Holmes said failure to meet local-match requirements — or inability to secure a waiver — could put roughly one-third of Highlands’ budget (state funding) at risk. She said the CSB budget is about $40 million with roughly $1.3 million in state funding referenced in her remarks.

Holmes also warned of broader federal funding uncertainty and said some federal recovery-court grant opportunities are not currently posted; she said the CSB may ask the board to consider opioid-abatement dollars to support recovery court programming that also helps meet local-match rules. Holmes closed by asking the board to be mindful of these funding stresses as it finalizes the FY26 county budget.

Ending: Holmes requested awareness and planning; board members asked clarifying questions about the dollar amounts and match calculations; staff and board follow-up were requested if the board needs details for budget decisions.