Lebanon County officials approved on the record the Mental Health, Intellectual Disabilities and Early Intervention (MHID/EI) service contracts for fiscal year 2025–26 and the agency’s budget, which includes a request for $600,000 in county funds to cover a projected deficit and required county matches.

The agency presented a suite of contracts totaling $6,361,597 — an increase of $535,975 from the prior year — covering mental health, intellectual disability and early intervention services. Holly Leahy, administrator for mental health, intellectual disabilities and early intervention, told commissioners these contracts include a larger crisis-intervention contract with WellSpan Philhaven and a new contract with Mental Health America of Lancaster for advocacy services.

Leahy said agency-funded expenses are projected at $9,084,501 while revenues are projected at $8,318,479, leaving an agency-wide shortfall. The MHID/ID projected deficit is $766,023; when combined with the county match requirement of $363,736 the total shortfall the agency is tracking is $1,129,759. To cover the immediate shortfall and the required match, the agency asked the board to continue the $600,000 contribution it has received in recent years.

Leahy emphasized that part of the revenue change reflects one-time HealthChoices reinvestment funds and other temporary sources. “These funds are not permanent,” she said, adding county officials should expect fewer HealthChoices dollars in future years and that the agency is “truly struggling” to fully fund crisis intervention from state and federal sources.

Commissioners discussed state-level funding prospects. Leahy noted Gov. Josh Shapiro’s proposed 2026 state budget includes $20 million statewide for mental-health funding; she said that level of state support would substantially reduce the county’s gap but would likely not erase long-term funding pressures. Leahy projected that without continued one-time revenue the agency’s deficit could grow to about $1.9 million in a subsequent year.

The board moved and approved the FY2025–26 service contracts and the agency budget as presented, including the $600,000 county contribution. Commissioners asked the agency to continue searching for savings while preserving mandated services and warned that provider closures would be a serious risk if cuts are deep.

Leahy and fiscal director Sue Douglas told the board they will continue to monitor utilization, adjust provider units based on historical usage, and bring further proposals if the state budget outcome changes. The board’s approval was recorded by voice vote without roll-call tallies.

The action keeps current provider rates and service availability in place for the coming year while formalizing the county’s budget support and the agency’s plan to manage a combination of recurring and one-time revenues.