Health Department proposes stabilization beds, aftercare navigators and a recovery campus in FY2026 plan

Deputy Commissioner Daugherty presented three new substance-use initiatives included in the department's FY2026 recommendation: reengagement (stabilization) beds, aftercare navigators, and a pilot recovery campus.

Daugherty said the department proposes $1,000,000 for reengagement/stabilization beds. She described two uses: short-term stabilization for residents who must temporarily leave recovery housing, and temporary placement for people leaving residential treatment while they await openings in recovery housing. On the likely scale, she said the beds would be based at existing residential treatment providers and could flex with demand.

The department also proposed funding for aftercare navigators embedded at three major residential treatment programs. Daugherty explained these positions would help individuals operationalize discharge plans and access follow-up care so "people aren't falling through the cracks" during transitions between levels of care.

The third proposed initiative is a recovery campus pilot, combining recovery housing, treatment services, employment supports and life-skills training. The department proposed 15 beds for the recovery campus, with $500,000 in one-time startup funding and $1,000,000 for ongoing operations.

Commissioners and legislators asked whether similar stabilization funding had been appropriated in FY2025; a representative stated a prior $1,000,000 one-time appropriation was expected but department staff said they would confirm whether the appropriation had been enacted as anticipated. Daugherty said the department used an RFI process that recently closed and that an RFP would follow to find community partners for the recovery campus.

In the broader substance-use budget discussion, Daley and Levine described two related funding shifts: the governor's proposal moves substance misuse prevention funding from a $3,000,000 general fund appropriation to a new substance misuse prevention special fund (seeded by cannabis excise revenue) with a recommended $6,750,000 appropriation, and the department recommended $2,800,000 in new funding for treatment and recovery.

The presentation also covered opioid-abatement special fund activity. Daley said previously appropriated opioid-abatement-funded items have often been one-time allocations; the administration recommended continued funding this year for syringe service program grants provided that funds remain available. Daley said the administration will deliver recommended appropriations from the opioid abatement special fund to the legislature as a separate bill.

Ending: Members asked follow-up questions on provider reimbursement, how stabilization beds would be funded (per-use reimbursements), and timing for RFPs; the department pledged to provide the committee additional documentation and to confirm prior-year appropriation status.