Committee hears funding requests, transfer exemptions tied to Idaho Behavioral Health Plan delays

Alex Williamson, budget and policy analyst with the Legislative Services Office, told the Joint Finance-Appropriations Committee on Feb. 24 that the Division of Mental Health Services is seeking federal authority to spend grants related to the Idaho Behavioral Health Plan (IBHP) and requested transfer exemptions to move funds across program categories.

The IBHP, Williamson said, was originally scheduled to go live in 2022 but did not go live until July 2024; federal grants tied to the earlier appropriation year remain available but require new state authority to access. "They are asking for an appropriation now in order to give them the authority to access those federal funds that are still sitting there, available to them," Williamson said. The department's request includes a $6.7 million one-time federal supplemental and a $261,400 ongoing federal operating request tied to federal grants administered by the Substance Abuse and Mental Health Services Administration (SAMHSA).

Director Alex Adams of the Department of Health and Welfare told the committee the IBHP contract process contributed to delays. "This was, I believe, the largest contract in the history of the state, so I do think it is wise and prudent for the department to do it right versus to do it quickly," Adams said, and added that legal challenges also delayed the contracting timeline.

Williamson also described recent and prior line items that affect the division's base. The committee previously approved a $6 million ongoing enhancement for community behavioral health clinics (added in FY2023), $3 million one-time for community mental health, and $4.4 million one-time to help stand up the 988 crisis line. She noted a $830,000 transfer from mental health services to Medicaid and $720,000 ongoing for youth crisis centers among other adjustments.

Beyond the IBHP appropriation requests, the Division asked this committee for exemptions to the program-transfer limits in Idaho Code —7-35011 (67-35-11). Williamson said the department seeks authority to exceed the statutory 10% program transfer limitation for fiscal year 2025 and to have no additional transfer limitations beyond 67-35-11 in 2026.

Adams and Williamson told members that the requested transfer authority would give the department flexibility to move resources into adult and children's mental health in the event of unforeseen expenditures. Adams cautioned that when entitlements expand or utilization is higher than budgeted, the department may need to take actions such as temporary service suspensions to stay within appropriations. "We had to temporarily suspend some of the services that are available to children's mental health," Adams said, explaining that the department narrowed services to live within the appropriated budget rather than seek an immediate supplemental.

Why it matters: committee members pressed for clarity about the timing and oversight of contract awards and the department's need for transfer flexibility. The requests would allow the department to access available federal funds tied to the behavioral health plan and to move funds among object classes and programs when legal or operational delays change the funding picture.

What comes next: the committee will consider the supplemental and ongoing authorization language as part of upcoming hearings and appropriation bills. Williamson noted some line items and FTP counts changed after prior committee actions; the division reported about 278.23 FTP for the division following recent committee decisions.