Whatcom County officials flag operating shortfall for proposed Crisis Relief Center, delay formal action

Whatcom County officials reported progress on planning for a new jail and an adjacent behavioral care center but said they will pause major operational decisions for a proposed 23‑hour Crisis Relief Center until the state resolves reimbursement questions.

At the Jan. 27 meeting of the Incarceration Prevention Reduction Task Force and Law and Justice Council, Kayla (Whatcom County Executive’s Office) told members the county has raised about $14.2 million toward a roughly $14.7 million Crisis Relief Center and shell space to accommodate future services, but that the project faces a likely multi‑million dollar annual operating gap if the state does not change how it reimburses care.

“We have fundraised $14,200,000 for this facility. We think we're looking at a $14,700,000 project,” Kayla said. “What we're seeing in King County is that about 50% of the clients are non‑Medicaid, and the state has no mechanism to bill for those clients.”

Why it matters: the county can cover much of the capital cost but cannot commit to long‑term operating deficits without jeopardizing other projects. County staff and task force members said the uncertainty affects whether they should proceed with schematic design, issue a services request for proposals, or wait for possible legislative changes.

Details from the meeting

- Funding and capital status: Kayla said the project has roughly $14.2 million raised against an estimated $14.7 million cost. She said about $11.3 million is state capital funding and roughly $3.0 million is local funds from the county and the City of Bellingham. ‘‘I think we would have four years, best case, to spend that $11.3 million,’’ Kayla said when discussing spending timelines.

- Operating viability concerns: County staff described a pattern reported in other Washington jurisdictions: behavioral health facilities of comparable size can face annual operating shortfalls in the low tens of millions of dollars. Kayla said one King County facility’s 30‑bed operation runs about $20 million a year, with state reimbursements covering roughly half; that leaves an approximate $10 million annual gap. County staff said similar providers have declined to operate other new regional facilities because of those gaps.

- Next planning steps: County leaders will present the owner's representative and the project scope to the County Council’s Criminal Justice and Public Safety committee the next day and are seeking state approval to use a progressive design‑build delivery method, with a target to have a design‑builder under contract by the end of July. Kayla said the county will also seek an independent validation of the sheriff’s jail capacity estimates within roughly 90 days and will ask the owner's representative to produce a public project management dashboard showing schedule and spending.

- Provider outreach and partners: Whatcom County Health and Community Services staff have drafted bid documents for a licensed behavioral health provider to help in pre‑planning and to operate the facility. Kayla said staff have held productive conversations with PeaceHealth and the City of Bellingham about emergency‑department diversion and clinical coordination.

- Task force actions and process: The meeting included discussion of forming a small IPRTF work group to study a behavioral care center operational model. Chair Peter moved to create the group, but the task force had lost quorum and the motion was postponed to a future meeting. Separately, Marty and Holly described a plan to publish shorter quarterly summaries of Justice Project work using existing consultants; task force chairs and staff agreed the Communications work could proceed within the scope of the current contract and steering committee authority.

Voices from the meeting

- Kayla (Whatcom County Executive’s Office): “We are in a holding pattern until we get a sense of where the legislature is going on this,” referring to potential state changes around reimbursement.

- Melora Christensen (Whatcom County Health and Community Services): Melora emphasized that some jurisdictions already have built facilities that are “turnkey ready” but cannot open because of unresolved operating funding; she said that timing gives Whatcom County more flexibility.

- Mayor Lund (Mayor, City of Bellingham): “The city's money that we've committed remains, so local funding is not in jeopardy,” Lund said, adding that the city had allocated opioid settlements in support of the behavioral health center.

- Heather (IPRTF member): Asked about estimated annual operating shortfalls and the difference in services between existing centers and the proposed 23‑hour Crisis Relief Center. County staff answered that larger behavioral care centers provide longer stays and more clinical capacity and that the 23‑hour model is intended as a no‑wrong‑door “recliner observation” unit to divert people from emergency departments and jail and to coordinate care before longer stays.

What the task force requested

Members asked staff to continue legislative outreach and to return to the task force with clearer options for how to proceed with the capital project if the state does not provide a durable operating funding solution. Staff said they are coordinating with regional partners and legislators (Representative Davis and Representative Macri were named as conveners) and will keep the task force informed.

Background and next steps

County staff said they will present the owner's representative to the County Council the next day, continue outreach to PeaceHealth and other providers, pursue state approval for progressive design‑build, and evaluate an independent consultant’s proposal to validate jail operational needs. The proposed IPRTF work group on the behavioral care center will be scheduled for a future meeting once quorum is available.

The task force did not take a formal vote on the Crisis Relief Center's service model or provider selection at the Jan. 27 meeting.