Corrections outlines substance‑use treatment budget and reports narrowing service gaps after Medicaid expansion

The Idaho Department of Correction presented the community‑based Substance Use Disorder (SUD) treatment budget and a gap analysis to the Joint Finance committee on Feb. 4, saying Medicaid expansion reduced some state costs and that access to services has improved though gaps remain.

Budget analyst Noah Peterson said the SUD division is the smallest by FTP (18) and that trustee and benefit payments accounted for roughly half of fiscal 2024 expenditures; those payments support education and training assistance for people in custody transitioning back to the community. Peterson said personnel represented most of the remainder of the division’s budget.

Peterson noted a prior reduction in the division’s base budget tied to projected savings after Medicaid expansion: at the time the department estimated about 93% of probationers and parolees would be Medicaid eligible, and the presentation listed a total projected reduction of about $2.76 million, noting roughly $1.7 million of that reduction from the general fund and about $1.0 million from the Millennium Fund.

Director Josh Tewalt told lawmakers a recent gap‑analysis showed the “delta” between need and available services had narrowed to about 6 percent, and he said more than 2,000 people were receiving mental‑health services and over 3,000 were receiving substance‑use disorder services through department efforts and community partnerships. He described the gap analysis as a tool to target higher‑risk, higher‑need populations for treatment and reentry planning.

No formal action was taken; the committee did not ask for immediate changes to the division’s funding but staff noted the governor recommended standard replacement items and the two percent cost‑of‑living adjustment applied in the maintenance budget.