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During this week’s budget presentation by Governor Shapiro, funding for mental health services was addressed as a priority for vulnerable Pennsylvanians. RCPA is working to review the preliminary funding recommendations listed below, and we hope to have greater line-item insight from DHS Secretary Arkoosh’s address this Friday.
Please note that registration is now open for the DHS 2024/25 Budget Briefing. You can register to view the briefing here. Additionally, the DHS House and Senate Budget Hearings will be March 5 and 6, 2024, respectively, and RCPA has been asked to provide questions for the testimony. The DHS budget book is available here.
Lastly, as part of our RCPA Mental Health Steering Committees and Work Groups, we will review recommendations as we develop our strategic budget advocacy campaign over the next several months in our meetings with stakeholders and legislators.
We offer the following as the initial review of yesterday’s budget presentation:
2024/25 Budget: Mental Health Program Recommendations:
This budget recommends the following changes: (Dollar Amounts in Thousands) for Mental Health Services
School-Based Mental Health
This year, the Shapiro Administration looks once more to address the needs of student mental health with a $100 million investment. This new set of funds comes on the heels of $90 million recently allocated to schools, with monies originally set aside for adult mental health services targeted through the now defunct 2022 Behavioral Health Commission.
The funding mechanism for the distribution of these funds has yet to be determined if it is approved by the General Assembly. The last two rounds of school-based mental health funding have been allocated to individual districts through noncompetitive grants. The concerns have been that the funds, if not earmarked for the development of service delivery pathways, will go to building staff infrastructure in the form of social workers. While there are advantages to having these professionals in the buildings, they alone cannot address the student needs for assessment and treatment services
RCPA supports the funding being designated through the schools but will work with legislators to encourage developing a coordinated system of care coupled with a longer-term financial strategy with the schools, community-based providers, Student Assistant Programs (SAP), and county involvement in SAP coordination.
Early Intervention Services
As part of our initial budget discussions with OCDEL, we were concerned that there would not be an interim rate increase for 2024/25 as we work through the new Early Intervention rate methodology. We see in the budget that there is an increase of $16 million, nearly 9% over last year’s number. It is also projected that more children and families will be served in this coming year, and we will work with the administration to, at a minimum, continue to fund the ARPA-supported 3% increase from over the last three years.
County Child Welfare
It is projected that the County Child Welfare budget will essentially be flat, with less than a 1% increase. As the child welfare systems await the DHS Blueprint recommendations on addressing the extensive number of services for youth with complex care, especially those in congregate care, it was surprising there was not a designated funding allocation to support this initiative. This remains a priority to fund these programs.
County-Based Mental Health Funding
It was disappointing that the Shapiro Administration failed to deliver on last year’s “down payment” of the 2022/23 allocation of $20 million towards the county base. Up until last year, the county-based mental health system has gone more than a decade without a base rate increase. Last year’s $20 million represented only a 3% increase over the 2022/23 base funding. This year’s $20 million will equate to less.
We will continue, as part of our advocacy strategy, to support an allocation that is projected to be in the neighborhood of $1.2 billion to create a sustainable platform for county-based mental health service delivery.
Today, Governor Josh Shapiro gave his second budget address to members of the General Assembly. The Governor outlined an agenda that included new spending for direct service providers, minimum wage, education, health care, law enforcement, and a number of other initiatives. The below budget initiatives come from information from the Governor and his team, which has been made available to stakeholders. The budget proposals include:
Investing in Competitive Pay and Reimbursement of Services for Home & Community-Based Care
Making Pennsylvania a Leader in Economic Development, Job Creation, and Innovation
Building on Historic Education Investments & Making Progress to Support Every Pennsylvania Child
Delivering a New Blueprint for Higher Education Grounded in Access & Affordability
The above are highlights of the Governor’s proposed budget. RCPA will be examining the budget spreadsheets over the next few days, will be attending the DHS Budget Overview this Friday afternoon, and will update members with any new information as it becomes available during the budget season.
If you have any questions, please contact Jack Phillips.
The PA Provider Advocacy Coalition, an organization that constitutes a variety of PA providers and advocates across all fields, recently sent a letter to the Shapiro Administration regarding the FY 2024/25 budget. RCPA signed onto the letter, which calls for rate adjustments and investments in Medicaid services in order to address the current workforce crisis. The Coalition states in the letter:
We recognize that addressing these workforce challenges will require a sustained, coordinated, multi-faceted public and private sector response. Earlier this year, our coalition met with representatives of your administration to recommend the creation of a Health Care Workforce Council to help lead this multiyear effort. However, there is one aspect of this overall problem that is relatively straightforward—chronic underpayment by the Medical Assistance program.
RCPA will continue to keep our members informed of updates. If you have any questions, please contact your RCPA Policy Director.
RCPA recently joined over a dozen PA associations in delivering a joint letter to the Shapiro Administration requesting investments be made in behavioral health services for the Fiscal Year (FY) 2024/25 budget. As noted in the letter, which was compiled by the PA Provider Advocacy Coalition:
The mental health system all too often is unable to deliver the right care, at the right time and in the right setting. We recognize that there is no simple fix and that a sustained, multiyear effort by all stakeholders—the commonwealth, counties, providers, insurers, and advocates—is necessary to rebuild and create a mental health system for the 21st century.
RCPA will continue to keep our members informed of updates. If you have any questions, please contact your RCPA Policy Director.