Behavioral-health providers urge House Finance to keep $13.7M clinic and rehab funding in budget

Juneau — Clinicians, behavioral-health administrators and community providers urged the House Finance Committee on March 14 to retain a $13.7 million operating increment for behavioral health clinic and rehabilitation services, saying the system is strained and the funds are needed to stabilize care across the state.

"Alaska's behavioral health system is in crisis," Dr. Victoria Kildall, chief learning officer for the Alaska Behavioral Health Association, said. "Resilience cannot replace funding — persistent financial shortfalls have led to fewer services, longer wait lists, and increasing difficulty in hiring and retaining qualified providers."

The nut graf: Witnesses from community providers framed the budget decision as one that will either maintain community-based treatment or shift costs to emergency rooms, jails and foster care. Maxwell Mercer, deputy director of Community Connections in Ketchikan, said his agency is serving fewer than half the youth referred for behavioral-health services and that higher funding is needed to recruit, retain and train staff in rural areas.

Provider testimony stressed that community-based supports (therapeutic foster care, in-home counseling, licensed foster homes) are more cost-effective and yield better outcomes than institutional care. Mercer said Community Connections employs nearly 200 people and currently cannot meet demand, serving under 50% of referred youth. Several witnesses noted that without additional investment costs will be shifted to higher-cost settings.

Ending: Committee members were reminded the funding decision is part of the operating budget process; providers asked the committee to keep the $13.7 million increment in the final plan to avoid further erosion of services and workforce capacity.