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HHSA warns of HR1 impacts, budgets Deer Creek behavioral health center and proposes targeted grants
Summary
HHSA Director Ryan Groover said the agency enters the budget year with relatively strong reserves but warned HR1 (federal/state reconciliation) could cause Medi‑Cal disenrollments and new local costs. The budget includes $23M for Deer Creek Behavioral Health Center capital costs and a $200,000 one‑time grant to help community nonprofits facing funding cuts.
Ryan Groover, Director of the Health & Human Services Agency (HHSA), presented the agency’s comprehensive FY 2026–27 budget and highlighted several fiscal risks and priorities.
Financial position and major projects: Groover said HHSA is “in the strongest fiscal position that it’s ever been” and reported an agency‑level ending fund balance of roughly $67 million. The proposed budget budgets both revenue and expense for the Deer Creek Behavioral Health Center, a capital project with approximately $23 million of budgeted expense in 2026–27; HHSA said it expects construction costs to accelerate in late June/July. Behavioral health payment reform has…
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