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Douglas County commissioners debate immediate aid and process after Bert Nash reports large operating losses
Summary
Commissioners discussed a May 21 statement from Commissioner Dorsey outlining Bert Nash Community Mental Health Center's reported financial losses and recent workforce actions; commissioners asked staff for a budget overview of the behavioral health sales tax fund and discussed whether to invite Bert Nash for an update next week.
Commissioner Dorsey delivered a detailed statement to the Douglas County Board of County Commissioners on May 21 outlining financial challenges at Bert Nash Community Mental Health Center and asking the commission to consider immediate assistance. Dorsey said the organization reported a $500,000 loss in 2024 and that, if current trends continue, it could lose roughly $3.2 million in 2025 on an annual budget he described as about $42 million. He said Bert Nash recently announced staff reductions, an early‑retirement program and salary reductions for non‑represented employees.
Dorsey asked the commission to consider several immediate steps, including revising the county’s lease for the Treatment and Recovery Center (TRC) to reduce rent to $1 per year or provide an equivalent grant, lifting a $1.6 million contractual cap on reimbursements related to the TRC, and using existing behavioral health sales‑tax reserves (which he said total about $15 million) to stabilize operations. Dorsey said Bert Nash’s endowment had approved a one‑time cash transfer of $1,350,000 to help but that the organization had otherwise exhausted reserve resources.
Commissioners and staff debated process and timing. Some commissioners urged following the regular budget process and an already planned budget overview; others pressed for more immediate review because of the reported layoffs and staff cuts. County staff said Bert Nash has submitted budget requests through the standard budget process and that staff planned a budget preview and deeper review of the behavioral health sales tax fund at a work session on June 11. Staff offered to invite Bert Nash to present an update next week (May 28) if the organization is ready and willing; commissioners asked staff to check with Bert Nash leadership and to provide an overview of how behavioral health sales tax funds have been allocated to date.
“Help cannot wait till the budget cycle, but must be placed on next week’s agenda to utilize some of the $15,000,000 in sales tax revenue for the good of the community,” Dorsey said in his statement, urging an urgent community conversation. Other commissioners said they support a review of the behavioral health sales‑tax fund and a budget overview before directing staff to recommend extraordinary funding, and they noted that the county must consider commitments to other community partners funded by the same revenue.
County staff said the sales‑tax‑backed behavioral health fund has been used for capital and one‑time projects and that last year the commission designated $2.5 million toward supportive housing; staff also said Bert Nash receives both property tax and sales tax funding because it had base funding prior to the behavioral health sales tax. Commissioners asked staff for a clear inventory of current commitments, reserves and planned uses for the fund; staff said they will present that material as part of the budget preview scheduled for June 11 and can invite Bert Nash to present an update sooner if the organization wishes.
Commissioners also noted that Bert Nash is governed by its own board and has an endowment and that any county action should preserve the partnership relationship. Commissioner Anderson said staff and commissioners have been meeting regularly with Bert Nash leadership and that staff would coordinate next steps.
Members of the public were directed to Bert Nash’s upcoming public board meeting (the speaker noted the board meets the first Thursday of June at 7:30 a.m. and that meetings are public). Commissioners asked staff to reach out to Bert Nash leadership immediately to determine whether an update can be provided at next week’s meeting and to prepare the June 11 budget preview with a deeper dive into behavioral health sales tax sources, uses and reserves.
No formal funding decision was made at the May 21 meeting; commissioners agreed to additional staff briefings and to request information from Bert Nash so the board can decide whether extraordinary assistance is necessary and how to allocate behavioral‑health sales tax reserves.
