House Appropriations hears Department of Mental Health budget with proposed bed cuts, 988 funding request and CCBHC rollout

House Appropriations Committee · January 29, 2026

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Summary

The House Appropriations Committee on Jan. 28 heard the Department of Mental Health present its FY2027 budget, highlighting a proposal to reduce Vermont Psychiatric Care Hospital (VPCH) capacity from 25 to 21 beds, a request to spend up to $1 million for 988 operations if funds flow through the state waterfall, and continued rollout of CCBHC certification.

The House Appropriations Committee heard the Department of Mental Health present its FY2027 budget on Jan. 28, focusing on staffing shortages, crisis system investments and several proposed program reductions.

Commissioner Emily Hawes told the committee that the department conducted a line-by-line review of its budget aligned with Vision 2030 and aims to focus spending on Medicaid-required costs, evidence-based investments and efficient programs. "Our mission is to promote mental health as a vital part of overall well-being by advancing prevention, early intervention, and recovery focused care," Hawes said.

Hawes reported staffing pressures across the system and said the Vermont Psychiatric Care Hospital (VPCH) currently has a vacancy rate of about 37% in direct-care floor positions. She said the hospital's census has been operating at roughly 20–21 patients rather than its 25-bed licensed capacity and that the department proposes reducing the hospital's operating capacity from 25 to 21 beds for budgetary and safety reasons tied to reliance on contracted travel staff.

Agency officials highlighted investments and operational changes intended to shift care into community settings, including mental health urgent cares, enhanced mobile crisis teams and Vermont's adoption of the 988 Suicide & Crisis Lifeline. DMH deputy commissioner Samantha Sway said Vermont is among the highest utilizers of 988 nationally and that the state recently implemented a 911→988 transfer protocol so appropriate emergency calls can be routed to crisis services. A DMH presenter reported November volumes near 1,700 calls per month and an in‑state answer rate of about 82% (goal: 90%).

The department described progress on the federal Certified Community Behavioral Health Clinic (CCBHC) demonstration. Hawes and staff said two agencies are certified and drawing enhanced rates, five more agencies are preparing for certification, and CCBHC requirements include expanded staffing, care coordination, quality reporting and community needs assessments.

On the budget specifics, DMH outlined the FY'27 'ups' (salaries and benefits, pre‑admission screening, urgent care operations, grants and transfers) and proposed reductions or in‑house reallocations. Key items included a request for authority to spend up to $1,000,000 on 988 initiatives if discretionary waterfall funds reach the department; moving some contracted training in‑house (including first‑responder mental health training historically referred to as Team 2); consolidating a contracted suicide‑initiative project management role under a state suicide prevention director; and a proposed cut to nursing services funded by DMH for a single community care home in Washington County.

Hawes also called out a proposed reduction in a Chittenden County community outreach program that DMH had previously flagged for scaling back after system changes. The department noted it funds roughly 200 grants and that it will provide additional financial breakdowns when requested by the committee.

DMH said a $1,000,000 carryover is earmarked for startup and operational costs for a youth unit at Southwest Vermont Medical Center, and that $9,500,000 in construction funding for that project is held by the Buildings & General Services (BGS) capital process and nearing contract finalization.

Committee members pressed for more granular page‑numbered materials, gross totals on grant pages, and additional vacancy and designated‑agency staffing data; DMH agreed to provide those details. The department emphasized that many adjustments are intended to preserve core crisis and community care while controlling costs and ensuring clinical oversight.

The committee did not take formal votes during the presentation. The chair closed the DMH segment and noted the committee would reconvene later in the afternoon with additional presenters.