Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Hospitals Budget topic
No spam. Unsubscribe anytime.
Department of State Hospitals outlines reversion of IST infrastructure funds, position and program reductions
Summary
The Department of State Hospitals told Assembly budget members its May Revision reduces its proposed budget by about $191.5 million from the Governor's prior proposal, including a $232.5 million reversion of unused IST infrastructure grant funds and operational and position adjustments.
The Department of State Hospitals (DSH) presented May Revision adjustments to the Assembly Budget Subcommittee No. 1 on Health that overall reduce the department's proposed budget by about $191,500,000 from the Governor's earlier proposal and include programmatic and capital‑project changes.
DSH Director Stephanie Clendenin said the May Revision reflects an additional reduction of 100.8 positions and several general‑fund solutions. Major items included:
- A proposed reversion of $232,500,000 in unused Incompetent to Stand Trial (IST) infrastructure grant funding originally appropriated in FY 2022–23 (funds had encumbrance availability through 2026–27), the department told the committee this money had not been fully utilized by counties and projects; DSH described several barriers, including project financing and long covenants required by grants.
- Rightsizing the IST program appropriation and other IST‑related adjustments that reduce funding across multiple years while DSH said it will continue to fund current service levels in early‑access stabilization, community‑based restoration and diversion programs. DSH also proposed reductions tied to utilization trends for the LA County community‑based restoration contract.
- Position and operational adjustments that include a proposed reduction of 233 total positions reflected across earlier and current proposals (DSH said vacant positions associated with closed units or historically low isolation‑unit utilization were being targeted and that the department did not plan to eliminate filled positions).
- Reappropriations and re‑scoped capital outlay changes, including requests to reappropriate funds for the electronic health record project and for construction of a fire‑alarm upgrade and a hydronic loop replacement project at Coalinga; DSH said the hydronic replacement is essential to avoid operational disruptions caused by frequent leaks in the existing system.
DSH asserted the IST restructuring was intended to align funding with current referral and contract utilization, and the department said it does not expect the May Revision adjustments to reverse the progress made in reducing the IST wait list and meeting court‑mandated timelines. Committee members asked why counties did not use IST infrastructure grants; DSH cited financing structure, 30‑year covenants and insufficient grant funding relative to construction costs as deterrents for some county applicants.
Why it matters: The IST infrastructure grant reversion is a large single‑item budget adjustment that affects county partners and planned expansion of community restoration capacity. Lawmakers raised questions about whether the reversion would slow local investments and asked DSH for further detail on county uptake barriers.
Next steps: Committee members requested additional justification and breakdowns for the reversion and asked for confirmation that service levels would be maintained. No vote was taken at the hearing.
