Officials ask legislature to clear transfer limits, seek federal funds after Idaho Behavioral Health Plan delay

Alex Williamson, budget and policy analyst with the Legislative Services Office, and Alex Adams, director of the Department of Health and Welfare, told the Joint Finance‑Appropriations Committee about budget changes and requests tied to the Division of Mental Health Services, including supplemental federal authority and transfer‑limit exemptions tied to the Idaho Behavioral Health Plan.

The department requested a one‑time federal supplemental of about $6,700,000 and an ongoing federal operating increase of about $261,400 to permit access to federal grants related to IBHP. Committee materials and Ms. Williamson's presentation also showed recent appropriations that include $6,000,000 made ongoing for community behavioral health clinics, $3,000,000 one‑time for community mental health, $4,400,000 one‑time to help stand up the 988 crisis line, $720,000 ongoing for youth crisis centers, and a transfer of $830,000 from mental health services to the Division of Medicaid in a prior action.

Why it matters: the IBHP funding affects crisis services, community behavioral health clinics and services not covered by Medicaid. The department is asking the legislature for an exemption to the 10% program transfer limits in Idaho Code 67‑3511 for fiscal year 2025 and for fewer transfer restrictions in 2026 so it can move funds department‑wide into adult and children’s mental health if unforeseen expenditures occur.

Committee members pressed the department about the IBHP rollout. Senator Cook asked why the contract and implementation were delayed; Director Adams said the procurement and rollout predated his tenure, that the IBHP contract was among the largest the state has issued and faced about a year of legal challenges. "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 litigation and other court actions delayed implementation.

Senator Wintrow and others raised budget concerns tied to the IBHP. Adams told the committee the IBHP budget projections were off—"by a factor of about 60%," he said—and that shortfalls and statutory limits on transferring appropriations forced the department earlier this year to temporarily suspend some children's mental health services rather than petition the legislature for a supplemental. Adams explained the distinction between entitlements (such as Medicaid) and gap‑filling services covered by these appropriations, saying that when an item is an entitlement the department has a legal obligation to pay even if costs exceed estimates.

The director and analyst said the Medicaid budget (which includes the IBHP contract) is scheduled for a later hearing and that more detailed conversations on the contract and its fiscal impacts will take place at that time. Several legislators requested follow‑up information on contract timing, specific grant availability and how waivers or transfer exemptions would be used.

The committee did not take a recorded vote on the department's 2026 requests during this hearing; staff and the director offered to provide additional documentation and updates at later hearings, including detailed breakdowns of federal grant authority the department seeks to access.