ALBANY — Funding to boost access to mental health services for low-income children did not make it into New York’s final $277 billion budget, though the state is legally mandated to increase aid.
Health advocates — who had been pushing for $200 million to increase Medicaid reimbursement rates — say the lack of action puts the lives of children who are in crisis at risk.
The rate increase is aimed at addressing a shortage in community-based and in-home providers, such as counselors, social workers and child psychologists, which has led to long wait times. In some cases, children are placed in out-of-state residential programs because services aren’t available closer to home, mental health advocates said.
The state budget was approved last month, roughly 8 weeks after the April 1 deadline, and didn’t include the $200 million.
WHAT NEWSDAY FOUND
- Funding to boost access to mental health services for low-income children did not make it into New York’s final $277 billion budget, though the state is legally mandated to increase aid.
- Health advocates — who had been pushing for $200 million to increase Medicaid reimbursement rates — say the lack of action puts the lives of children who are in crisis at risk.
- The rate increase is aimed at addressing a shortage in community-based and in-home providers, such as counselors, social workers and child psychologists.
“All the kids who have been on wait lists will continue to be on wait lists. The families who have been suffering from not being able to access services will continue to suffer from not being able to access services,” said Kayleigh Zaloga, president and CEO of NYS Coalition for Children’s Behavioral Health, which represents nonprofit service providers and advocates for children and their families. “Not all of the kids are going to make it without getting the care they need.”
The push for funding comes after a judge in January approved the state’s settlement of a class-action lawsuit brought by children and their parents, who alleged that New York violated federal Medicaid laws by failing to provide outpatient services to eligible children.
The state agreed to take 18 months to develop an improvement plan to bolster services, which includes raising provider reimbursement rates.
In some cases the reimbursement rates are lower than the cost of providing the service, so it’s difficult for nonprofit providers to maintain staff levels, Zaloga said.
She and other child health advocates say they hoped the state would take immediate action in the 2026-27 state budget.
A spokesperson for Gov. Kathy Hochul pointed to the nearly $2 billion in investments that have been made to the state’s mental health system since the Democrat took office, including about $576 million aimed at improving and protecting youth mental health.
“While our work to improve access to services is well underway, the settlement provides us with a framework to further implement an approach to community-based care under Medicaid that is responsive to the needs of children and their families,” Hochul spokesperson Nicolette Simmonds said in an emailed statement.
Budget priorities
Republican lawmakers questioned why the governor and Democratic-led legislature didn’t include the funding in the budget.
“With nearly $10 billion in additional spending beyond what the Governor said was necessary just weeks ago, the excuse cannot be a lack of resources. This was a conscious decision about priorities,” Sen. Patricia Canzoneri-Fitzpatrick (R-Malverne), the ranking Republican on the State Senate mental health committee, said in a statement.
Assemb. Joe Sempolinski (R-Olean) also questioned why youth mental health didn’t take precedence. “Our first priority should be ensuring the most vulnerable among us receive the services they need, especially our children,” Sempolinski, the ranking Republican on the Assembly mental health committee, said in an emailed comment.
The budget included a 2.7% inflationary rate increase across many human services programs, which Zaloga said will provide “modest relief” amid rising costs.
And the State Legislature last week passed a few bills targeting mental health. One bill would streamline the coordination of care for children with complex behavioral health needs, in an effort to ensure young people aren’t left in hospitals for days or weeks after being discharged while they wait for placement in other treatment programs. The measure now heads to Hochul for her consideration.
Federal cuts
Assemb. Jo Anne Simon (D-Brooklyn), who chairs the Assembly mental health committee, said she wasn’t sure why the $200 million wasn’t included, but noted that the ask came as the state saw billions of dollars in federal cuts to Medicaid and other safety net programs under the Trump administration. “We have had far less money to work with because of D.C.,” she said.
The state’s entering into the settlement agreement is a recognition of the need for change, she said. The “current system is clearly inadequate and people are going without care,” said Simon, who advocated for the funding. “It is in my mind money that’s well spent to address the needs sooner rather than later.”
For children, particularly children in crisis who may be expressing suicidal thoughts, there isn’t time to wait weeks or years, Zaloga said.
Cody Hauptman, of Babylon, who was part of the class-action lawsuit, has been experiencing mental health issues since he was 4½ years old. Hauptman, who is now 19, ended up in residential care away from his family because providers weren’t available in his community.
“When you’re a kid and your mind isn’t right, it’s really scary. You just want to talk about it with someone you can trust. You want to deal with it at home — not at a hospital, or in the back of a cop car,” he said in a guest essay for Newsday. “For me, and every kid like me, we’ve got to do better.”
