Integral Care tells Travis County court federal and state funding drops are squeezing services, creating $2.8M shortfall

Travis County commissioners heard on March 13 from Integral Care, the local mental health authority, that changes in federal and state funding have reduced cash available for community behavioral-health services and left the agency with an estimated $2.8 million shortfall for fiscal year 2024.

The shortfall comes amid rapidly rising demand: “This year … we served about 35,000 county residents,” Jeff Richardson, chief executive officer at Integral Care, told the court, noting the agency had doubled in size over the past four years and expects continued growth in need.

Integral Care described two linked financing developments that widened access while increasing the agency’s exposure to state and federal policy shifts. Richardson said the agency’s certification as a Certified Community Behavioral Health Clinic (CCBHC) expanded services and revenue streams but also increased operating complexity. "We have nearly 160 grants, about 400 sources of income," he said.

Rusty Taylor, chief financial officer for Integral Care, presented…