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Bill that would route federal funding through state agencies prompts concern from mental health centers

Leaders of community mental health centers in Iowa say they’re concerned about a bill that would route certain federal funding to a state agency before it reaches them. The centers have automatically gotten 70%—or about $5 million per year—of a block grant from the federal government.

Now, Gov. Kim Reynolds’ administration wants to first bring that money into the state Department of Health and Human Services.

Jess Benson, chief financial officer for Iowa HHS, says the mental health centers should still get the same amount of money they’re used to. Benson says the change is part of Iowa’s implementation of a new behavioral health system.

“That way, we have a good handle on you know what’s being spent on those things. Everybody’s being treated the same way. All providers are being treated the same way, and we have better patient records, better documentation on what’s being provided.”

But Flora Schmidt, executive director of the Iowa Behavioral Health Association, says providers still don’t know the details of how they’d get the funding, and the changes would take effect in less than three months. She’s asking lawmakers to delay that change for at least a year.

“Give these providers some certainty. Their budgets start July 1. And at this point, they don’t know what funding is going to be available to them.”