New South Central mental hospital nears completion; leaders ask lawmakers to restore construction reappropriation and fund start-up staffing

Committee on Social Services Budget · January 22, 2026

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Summary

Officials said construction of the 104‑bed South Central Regional Mental Health Hospital is on track for late 2026, but opening Jan. 2027 will require $30.9M for startup operations and a restored $70.1M reappropriation to finish construction and initial operations.

Officials overseeing the new South Central Regional Mental Health Hospital told the Committee on Social Services Budget that the facility is nearing physical completion but still needs targeted funding and staffing commitments to open and operate.

Shardae summarized the agency request and timeline: construction is expected to finish in October 2026, allowing eight months of FY27 operations; the agency requested $30.9M for first‑year operations in FY27 (including funding to reduce shrinkage and hire 336 FTEs) and expects to transition $15M in base budget from CADDS into the new agency. At the time of the report the agency anticipated admitting patients beginning in January 2027.

Juliana Reschick, superintendent for the South Central Regional Mental Health Hospital, described active construction (drywall in first patient wing, enclosing the last wing by early February) and a phased hiring plan: about 20 staff by mid‑July/August, about 40 by September for training, and fuller staffing and onboarding in October–November ahead of the target January 2027 opening. She said the hospital will have 104 beds: 52 acute civil and 52 forensic beds.

Deputy Secretary Scott Bruner asked lawmakers to consider restoring a $70,100,000 reappropriation in the CADDS budget that he said was intended for construction and remains largely unspent; he emphasized the bulk of that money will be used this fiscal year to complete the project. Bruner also reiterated the FY27 $30.9M enhancement request for operations and startup contracts (electronic health record setup, pharmacy supplies, transport vehicles and more).

Committee members sought clarity about the relationship between CADDS appropriations, the new agency’s budget and the timing of hires. Reschick and Bruner said some hiring will be supported through temporary office space, staffing agencies and partnerships with existing hospitals for leadership shadowing and training.

Ending: No appropriation vote was taken. Officials asked the committee to consider restoring the construction reappropriation and the FY27 operational enhancement during upcoming appropriations work so the hospital can open on schedule.