Senate package would create trust fund, set regional planning and new spending for behavioral health; Clovis outlines local crisis triage plan

Adrian Avila, chief of staff, told the Senate Finance Committee the administration is presenting a three‑bill behavioral health package: Senate Bill 1 to create a behavioral health trust fund, Senate Bill 2 to provide initial appropriations for services and infrastructure, and Senate Bill 3 to add planning, reporting and “guardrails” for regional behavioral health plans.

"The way you should read them should be 3, 2, 1," Avila said, explaining that SB3 sets accountability and performance measures, SB2 is the down payment for services, and SB1 is intended to provide long‑term sustainability through a trust.

Why it matters: Sponsors and staff told the committee the package attempts to move the state from a top‑down to a bottom‑up model by having the Administrative Office of the Courts (AOC) coordinate regional plans and by requiring annual reporting and performance measures to the legislative and executive branches. Committee members and analysts warned that significant gaps in capacity and data remain, and they pressed for clearer workforce and implementation plans.

Details of the bills and funding: Avila said the current SB2 version contains about $140,000,000 in appropriations intended to jump‑start community supports, mobile crisis teams, inpatient capacity, crisis response, jail discharge planning, law enforcement crisis units, outreach and housing supports. He described SB1 as a trust fund with a $1 billion target; invested by the State Investment Council, the trust would begin distributing about 5% of market year‑end value starting in 2027 to support treatment, infrastructure, workforce and other regional priorities.

LFC analysis and data gaps: Eric Chenier, municipal analyst for the Legislative Finance Committee (LFC), told the committee that New Mexico has increased behavioral health investments but still lacks a single entity with an overall view of resources. "Medicaid is the single biggest lever," Chenier said, noting roughly 42% of the state population is enrolled in Medicaid and that about $900 million flowed through Medicaid for behavioral health in FY25. Chenier said the LFC's gaps analysis is a work in progress and that better, uniform data is needed to target funds effectively.

Capacity and beds: Committee members asked about inpatient capacity and vacancy rates. Avila said the state has about 520 beds statewide and noted gaps remain; later the Healthcare Authority reported to committee staff an estimated 86 vacant behavioral health beds at the time of questioning. Senators asked whether providers can stand up services quickly; staff and Avila said some agencies have existing staff but will need recurring funding and new hires, for example judicial liaisons and local coordinators, to implement regional plans quickly.

Local example — Clovis: Mike Morris, mayor of Clovis, presented a three‑year regional effort involving six counties that produced a feasibility study and a plan for a crisis triage center. Morris said the Clovis project intends to open a crisis triage center with 10 observation “recliners” and 12 short‑term stay beds, colocated near the hospital and funded so far with $10 million in capital outlay plus opioid settlement funds and local pledges. He said the city has selected an operator, Community Bridges, and plans a design‑build process to speed construction.

Open questions and next steps: Senators pressed staff for more detail on workforce development, credentialing, and whether SB2 money will be recurring. Avila and Chenier said some funding will need to be built into recurring agency budgets and that local planning will show precise workforce needs. Committee members requested vendor/provider hearings and additional data; the chair scheduled follow‑up hearings with departmental implementers and provider groups.

Committee direction: The presentation concluded with committee members asking staff to return with more detailed cost estimates, implementation plans and provider input. No formal action or votes occurred during the hearing.

Ending note: Staff said the LFC will continue developing its gaps and needs report and that the committee will schedule additional hearings to refine the bills and clarify oversight, workforce and provider‑capacity questions.