Department of Mental Health requests $291.2 million in general funds for FY27, highlights IDD waiver enrollments and staffing needs

Wendy Bailey, executive director of the Department of Mental Health, told the Appropriations Committee the agency is seeking $291,247,156 in general funds for fiscal 2027 and $453,083,201 in spending authority for fee‑funded operations.

"We are requesting $291,247,156 in general funds," Bailey said, and described roughly $33.4 million in increased general‑fund requests from the current year and line‑item proposals to enroll people in waivers and shore up staffing and technology.

The agency asked for $5.8 million to enroll about 250 people from the IDD planning list into the home‑and‑community‑based waiver and $1.1 million to cover an anticipated FY27 rate increase tied to waiver services. Bailey told the committee the waiver is a joint partnership with the division of Medicaid and that 2,965 people currently receive waiver supports while about 2,600 remain on a planning list.

Bailey said the agency is also seeking $6.3 million to cover operational shortfalls at state‑operated 24/7 programs, citing a client population that has grown older and more clinically complex. "About 10 years ago, 48 percent of our clients were over the age of 45. Now 62 percent are," she said, adding that a higher share of clients now require one‑on‑one staffing.

To address recruitment and retention, the department requested targeted salary adjustments: a 3 percent increase for the three hardest‑to‑fill positions at each of 11 state programs, shift differentials of 10–15 percent for evening and night shifts, and longevity increases. The department estimated average wages for support care professionals rose from about $23,000 to about $29,000 over five years but said 89–90 percent of staff remain below market.

The FY27 request includes technology and capital items the department said are necessary to maintain safe operations: $2.5 million for electronic health record support, $3.4 million for information security to meet HIPAA and ITS rules, and $2 million for capital asset needs such as generator replacements and boiler/chiller work at state hospitals.

Bailey also requested $650,000 to expand an 8‑bed Jackson County crisis stabilization unit to a 16‑bed maximum, saying demand and space justify the enlargement and that crisis units accept admissions from outside the county.

On federally funded pandemic recovery dollars, Bailey said ARPA supported a number of high‑outcome programs but that those funds will end in October. The department has spent approximately $26 million of an FY27 ARPA allocation of about $51 million and is requesting $4 million to continue select programs, including 988 crisis line support, peer respite sites and community‑based intensive services.

The presentation highlighted an 81‑bed maximum security forensic unit brought online last June. "In six months, the wait list has been cut in half," Bailey said, noting the average wait for competency restoration fell to about five months from roughly a year; the department also reported a 51 percent increase in admission orders to forensic services as awareness and referrals have risen.

Committee members pressed Bailey on whether the surge in forensic referrals reflected changing criteria or an effort to delay court proceedings. One member, who identified themselves as a recovering criminal defense attorney, observed that drug‑related cases often prompt competency requests; Bailey acknowledged some referrals may be inappropriate and offered to provide more information, noting evaluation orders have increased substantially.

On grant funding for community mental health centers, Bailey told the committee the department disbursed about $85 million in subrecipient grants to the 11 county‑based centers in FY25 and that those centers received roughly 89–90 percent of state general funds allocated through Department of Mental Health grants. She said county contributions to centers are determined by millage (producing about $9–10 million statewide) and that some counties supplement required amounts with additional cash or in‑kind support.

The meeting closed without a recorded formal vote on the FY27 request; the chair asked for a motion as the committee prepared to rise and report.

Next steps: Bailey offered to provide additional data on the rise in evaluation orders and forensic referrals and declined to record a committee vote during the session.