DHW director says Idaho Behavioral Health Plan delayed by legal challenges; agency seeks federal access and transfer exemptions

The Department of Health and Welfare told the Joint Finance‑Appropriations Committee Wednesday that delays and legal challenges slowed implementation of the Idaho Behavioral Health Plan and that the agency is asking the legislature for authority to access federal grant funds and to relax program transfer limits.

Alex Williamson, a budget and policy analyst with the Legislative Services Office, told the committee the department requested a fiscal‑year 2025 supplemental of $6,700,000 in one‑time federal funds to support the first year of the Idaho Behavioral Health Plan, and an ongoing federal request of $261,400 for operating costs tied to federal grants administered by the Substance Abuse and Mental Health Services Administration.

“I'll be honest. Those activities predated my time with this assignment,” Williamson said when asked why the RFP and award timing was delayed. Director Alex Adams, who also testified, said the contract that implements IBHP “was, I believe, the largest contract in the history of the state,” and that the procurement attracted legal challenges that added about a year of delay. “When things get ... in court it delays the ability to implement,” Adams said.

The department also asked for an exemption to the 10% program transfer limitation in Idaho Code 67‑35‑11 for fiscal 2025 and for no additional restrictions in 2026. The requested exemption would let the department transfer funds across program categories to move resources into adult and children's mental health to cover unforeseen expenditures, staff said.

Adams warned the committee that without transfer authority the department had to make operational cuts earlier in the year. “We did have to temporarily suspend some of the services that are available to children's mental health,” he said, describing the choice as one between requesting a supplemental or reducing services to stay within the statutory budget lines.

Committee members pressed for detail about the cause of delays and whether the department would be better served by different procurement or oversight. Adams replied the combination of a large contract and legal challenges made slower, more deliberate procurement preferable to rushing implementation and risking operational failures.

The department and LSO analysts said the supplemental and ongoing federal requests are intended to give the agency authority to draw down previously awarded federal grants that were initially appropriated in earlier fiscal years but could not be used because the program did not go live until 2024.

The committee did not take a vote on the requests at the hearing. The department said it would provide further detail to the Medicaid budget discussion and supply answers on procurement timing and contractor arrangements as requested by members.

The discussion tied the behavioral health items to related budget actions before the committee, including prior one‑time appropriations for community behavioral health clinics and funding for 988 crisis line startup costs.