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Department of Mental Health seeks $334.8 million in FY26 budget; splits central office and facilities appropriations for transparency
Summary
The Department of Mental Health presented a $334.8 million FY26 request emphasizing Medicaid funding, a proposal to split appropriations for central office versus facilities, and several program shifts including transfers to DCF and adjustments for private residential care.
The Vermont Department of Mental Health on Tuesday presented its proposed FY26 budget of $334,818,318, driven largely by Medicaid funding and several programmatic reclassifications.
Commissioner Emily Haas and Shannon Thompson, the department’s financial director, told the House Committee on Health Care that about $235 million — roughly 70% — of the request is funded through Medicaid Global Commitment, with an additional roughly $52 million described as Medicaid investment funds. Thompson said the department is also requesting about $31.5 million in general fund and $12.9 million in federal funds.
The budget overhaul includes a request to split the department’s single appropriation into two line items: one for the Department of Mental Health central office and programs and a second for the two state-run facilities — Vermont Psychiatric Care Hospital in Berlin and River Valley Therapeutic Residence in Essex. Thompson said the split is “for transparency purposes” so the legislature can see…
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