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Health and Welfare asks committee to approve transfer exemptions, one-time federal funds to support Idaho Behavioral Health Plan
Summary
The Department of Health and Welfare asked the Joint Finance-Appropriations Committee to approve a fiscal-year 2025 supplemental and a limited ongoing federal operating increase tied to the Idaho Behavioral Health Plan, and requested exemptions to statutory program-transfer limits so it can shift funds across budget categories.
Alex Williamson, a budget and policy analyst with the Legislative Services Office, told the Joint Finance-Appropriations Committee that the Department of Health and Welfare is seeking authority to access federal grants tied to the Idaho Behavioral Health Plan and to ease transfer restrictions across program object classes.
The request includes a $6,700,000 one-time supplemental in federal funds for fiscal year 2025 to allow the department to access federal grants issued after the plan’s delayed go-live, which Williamson said did not occur until July 2024. The department is also seeking an ongoing federal operating increase of $261,400 to support operating expenditures for grants administered by the Substance Abuse and Mental Health Services Administration.
The department asked for an exemption to the 10% program-transfer limitation described in Idaho law (referenced in the hearing as Idaho Code 673511). Williamson said the exemption would allow the department to transfer resources across programs to cover unforeseen adult and children's mental health expenditures in fiscal year 2025 and into 2026.
Alex Adams, Director of the Department of Health and Welfare, told the committee the contract that underpins the behavioral health plan was large and attracted legal challenges that delayed contracting and implementation. "When you're dealing with contracts in the billions... that attracts legal challenges," Adams said, adding that the department chose to prioritize doing the procurement correctly rather than quickly.
Senators on the committee pressed for detail about the delays and the timing; Adams and Williamson said the delays predated their tenures and included roughly a year of legal challenges. Williamson noted the appropriation for the behavioral health plan had been authorized in 2022 but, because the go-live occurred later, the department needs the new appropriation authority to draw down federal dollars now available.
Williamson also explained that the requested transfer exemptions would give the department more flexibility to move funds into adult and children's mental health to address higher-than-expected costs without returning immediately for additional appropriations. The request is part of the division-level materials the committee will consider as part of the behavioral health enhancement appropriation bill scheduled by the committee for Jan. 31.
The committee did not take a vote on the requests during the hearing; staff and the director said they would return to answer follow-up questions if requested.
