SFY 2026 Executive Aid to Localities Budget Bill Updates

January 22, 2025

Below please find more information regarding the SFY 26 executive budget proposal from our government relations consultant Marcy Savage at Reid, McNally & Savage.

Dear Lauri,Below is an update on what is included and where there are changes in the OASAS and OMH Aid to Localities Executive budget, as compared to the enacted SFY 2025 budget.

OMH:

  • All funds spending is increased by approx. $300 million
  • Approx. $94 million in new funding for Medicaid payments for various MH services
  • $74 million is included for BHET collection
  • An increase of $9 million is included for transitional beds, SOS CTI teams and CTI teams
  • Approx. $100 million in additional funding for transitional step down units
  • $67.089 million is included for 2.1% targeted inflation rates proposal
  • $8.36 million is provided for minimum wage funding increases (up from $8.22 million in SFY 2025)
  • $50 million in new funding for Children’s services ($35 million for residential treatment facilities and $15 million for community MH non-residential programs

OASAS:

  • All funds spending is increased by approx. $3 million
  • Total funding for the Community Treatment Services program is down $3 million
  • $37 million is included for BHET collection
  • $2.3 million in increased funding is provided for residential services
  • $6.38 million is included for minimum wage funding increases (up from $2.9 million in SFY 2025)
  • $12.8 million is included for the 2.1% targeted inflation rates proposal
  • $1.5 million and $8.5 million is included as two appropriations for the SUD/MH ombudsman program similar to SFY 2025
  • New funding totaling $3 million is provided for street level outreach and SOS teams focused on assisting those who are homeless with housing
  • $62.95 million is appropriated from opioid settlement dollars with the following spending schedule:

OPIOID SETTLEMENT FUND

Notwithstanding any provision of law to the contrary, payments  made pursuant to this appropriation shall not exceed the value of actual deposits to the opioid settlement fund as a result of statewide  opioid settlement agreements (11809) …………… 62,952,000      

Sub-schedule

Reserved for Municipalities ….. 19,350,000 29
Harm Reduction ……………… 12,237,000
Treatment …………………… 5,232,000
Workforce, Diversity, Inclusion, Equity, and Belonging …………………. 4,419,000
Health-Related Social Needs……. 3,227,000
Data and Outcomes ……………. 2,645,000
Recovery ……………………. 3,401,000
Prevention ………………….. 2,703,000
Co-Occurring   Disorders   and Special Populations ………… 3,982,000
Grassroots  Organizations Working  with Populations Disproportionately Affected …. 5,756,000
Program account subtotal …. 62,952,000