State Budget Update

March 5, 2025

While we continue to track federal actions and weigh in with our DC representatives every day, we want to keep you up-to-date on our state budget priorities and advocacy to obtain our objectives:

1) 7.8% increase on Medicaid rates, state contracts, etc. for Human Service agencies

Two weeks ago a press conference focused on the need for a 7.8% increase was held in the Capitol.  Last week a group of 11 membership association leaders met with key leaders from the Governor’s Office and DoB to reiterate our desperate need for this increase.  At the same time, numerous groups across the state and here in Albany have been holding lobby days and rallying in support of the increase for mental health and substance use disorder agencies.  In addition, groups representing stakeholders continue to press Assembly and Senate leaders to champion our needs to address workforce shortages and ever increasing operating expenses.  Unfortunately, we have been hearing that some lawmakers want to (again) bifurcate how agencies use whatever the final increase is, in order to ensure the funds primarily ‘go to staff’ (rather than permitting eligible agencies to use these funds according to the attestation the state agencies require providers to sign).  

2) OMIG Audit Reform Bill 

We now have newly amended bills (in the Senate and the Assembly) that are the same – one sponsored by Senator Harckham (S4955A) and the other by Assemblywoman Amy Paulin (A1069A).  As we wait for the release of Assembly and Senate one-house bills that are an articulation of the priorities of each house as they enter intense budget negotiations and we push to ensure our OMIG request is included in the one house bills, the NYS Council continues to provide statewide leadership alongside COMPA, CPNYS, HANYS, GNYHA, and the Federation of Mental Health Services.  We will be meeting with Assembly Ways and Means central staff on Monday, to review elements of the amended legislation and to demonstrate unified support for urgently needed reform. 

3) Carve Out of BH Services from Medicaid managed care

Senator Samra Brouk (Chair, Senate Mental Hygiene Committee) has agreed to sponsor our carve out bill in her house, and moments ago Assemblywoman JoAnn Simon agreed to sponsor our bill in her house. Now we are cooking with gas folks!  Stand by. 

4)  $195k rate increase for outpatient providers serving children, youth and families AND insurance mandate to ensure mental health and substance use disorder services for New York’s children, youth and families with commercial insurance is the same as the list of services provided under the Medicaid Program

ADVOCACY:  The NYS Council in collaboration with the HealthyMinds, HealthyKids Campaign requests your immediate support for both of the budget requests.  Please take a moment to weigh in here:https://healthymindshealthykids.org/take-action/

Two years ago our colleagues at Health Management Associates (HMA) were retained by the HealthyMinds, HealthyKids Campaign to analyze how much money would be needed to vastly improve access to outpatient mental health services for children, youth and families.  After a considerable amount of work, HMA projected that we would need about $200M from the state budget to reduce barriers and move waiting lists.  We have been fighting for these rate increases ever since.  

Later today two representatives from the HMHK Campaign will speak with David Lombardo who hosts a statewide radio show focused on issues facing our state and specifically, budget and policy issues in play during the legislative session, to discuss the rate request and the need for a mandate to ensure mental health and substance use disorder care is equally available (Medicaid and commercial insurance) to all New Yorkers seeking support from the public mental hygiene system.  

More to follow.