Study prompts bill seeking $64.8 million to close community mental‑health funding gap

The House Committee on Behavioral Health and Health Care heard testimony on House Bill 2056 and its dash‑1 amendment, which would appropriate $64,800,000 ($32.4 million per year) to the Oregon Health Authority to cover funding shortfalls identified in an actuarial cost study of mandated community mental‑health services.

Representative Rob Noss, who sponsored the bill, said the appropriation follows an 80‑page cost study directed by House Bill 4092 that quantified the gap in funding for three high‑need services: civil commitment, aid‑and‑assist (restoration services for people unable to aid in their own defense), and crisis stabilization. Noss said the study was developed with actuarial assistance and county and provider subject‑matter input and found a statewide funding gap for calendar year 2023; he cited a $5.3 million shortfall for Marion County in that year as an example.

Why it matters: civil commitment and aid‑and‑assist services are largely supported by state general fund dollars, are not fully Medicaid‑billable, and serve legally mandated populations. Witnesses said underfunding forces counties and community mental‑health programs to rely on temporary contractors, leads to workforce strain, and in some cases results in individuals cycling through jails and emergency departments.

County and provider testimony

Cheryl Ramirez, executive director of the Association of Oregon Community Mental Health Programs, said community mental‑health programs were subject‑matter experts in the cost study and urged lawmakers to fund the dash‑1 request to stabilize services and staffing. Al Barton (Mid‑Columbia Center for Living), Holly Harris (Deschutes County behavioral health director) and Mary Rumbaugh (Clackamas County director of health, housing and human services) described concrete local impacts: caseload growth, lack of funded staff time for civil‑commitment work, and rising costs forcing counties to use expensive contracted staff.

Phil Brady, Wasco County commissioner and co‑chair of the Association of Oregon Counties Health & Human Services Committee, said counties are on the front lines of crisis responses and that state aid would help reduce avoidable hospital stays and criminal justice involvement.

Committee discussion and next steps

Members noted the study’s sequencing — the OHA study covered these three mandated service areas first, with a follow‑up study of other required services due the following January — and asked about next steps for Ways & Means review. Witnesses said the requested funds would help cover required services that are currently under‑resourced and help retain staff.

Ending: Proponents urged the committee to send the bill to Ways & Means so the appropriation can be considered; the hearing closed after testimony from multiple county and program directors.