County stabilization center faces $3.5M FY27 deficit; Bend offers $200,000/year opioid‑settlement pledge
Summary
County behavioral-health staff presented an FY27 stabilization‑center budget with a projected $3.5 million shortfall; the City of Bend offered a $200,000 annual opioid‑settlement contribution and commissioners discussed additional commitments.
Deschutes County behavioral‑health staff told the joint meeting the crisis stabilization center faces a multi‑million dollar shortfall next fiscal year and urged broader jurisdictional contributions to preserve 24/7 crisis services.
Nicole Keith, program manager overseeing crisis services, presented the FY27 forecast. She said anticipated revenue (including grant rollovers and an assumed application award) totals about $5,785,000, including roughly $320,000 in opioid settlement funds and an assumed $1,000,000 in generated revenue. Total program costs (personnel, materials, indirects) were estimated at about $9,300,000, leaving an approximate deficit of $3,515,000 under current assumptions.
County staff and commissioners warned the forecast assumes flat Medicaid reimbursement and noted risks from potential Medicaid and coordinated‑care organization cuts that could worsen the deficit. County behavioral health has factored an average 7% vacancy and indirect costs such as building maintenance, IT and grant reporting into the budget.
The City of Bend offered to commit opioid‑settlement dollars to help sustain services. A city official said the city intends to provide a minimum of $200,000 per year from the opioid settlement and asked county staff to decide deployment between mobile crisis and stabilization services.
Commissioners said the sheriff's office historically contributed over $600,000 annually but cut that funding last year; a soft commitment in the $150,000–$250,000 range from law‑enforcement partners was discussed but the overall $3.5M gap remains unresolved.
County and city leaders asked staff to continue outreach to other cities and agencies and to return with proposals for closing the gap; commissioners highlighted that stabilization services reduce hospital and law‑enforcement costs and urged jurisdictional collaboration.
Next steps: county staff will continue outreach for contributions and return with more detailed funding options; the City of Bend’s $200,000 pledge is a near‑term offer subject to council ratification and intergovernmental agreement.
