Legislative Updates

FY27 Budget Request

The Department of Mental Health FY27 budget request is a $33,467,962 increase from FY26. This request includes: ​

  • $5,860,474 to enroll 250 people on the ID/DD Home and Community Based Waiver ($4,754,063) and rate increases expected in FY27 ($1,106,411)​
  • $6,328,194 for continued operation needs, including filling vacant positions at 24/7 DMH operated programs and state share match​
  • $4,264,000 to replace a portion of State and Local Fiscal Recovery Funds including 988 call centers and court liaisons​
  • $4,059,248 for personal services for in-range adjustments, educational benchmarks, title changes, difficult to recruit/retain positions, and longevity increases​
  • $2,555,685 for Electronic Health Records support and maintenance​
  • $3,477,353 for information technology security measures and cloud migration needs​
  • $650,000 for 16-bed Jackson County Crisis Stabilization Unit​
  • $2,098,942 for capital asset needs at NMRC, NMSH, and SMSH​
  • $4,174,066 for CMHC operating cost increases

ID/DD Home and Community Based Waiver – This request is for the state share of adding an estimated 250 enrollees in the Medicaid ID/DD Waiver program. At the end of FY25, approximately 2,500 people were on the Planning List. A rate study was conducted, and rates were implemented beginning FY24. The average state share billing per month, per person, for the 11 months of FY25 based on the unduplicated count being billed was $15,213 (rate increases included would be 25% additional, estimated to be $19,016.25 per enrollee/per month). That annualized average multiplied by 250 new enrollees is the request of $4,754,063. The number of enrollees at the end of FY25 was 2,838. Also included is an estimate for actuarially presented rate adjustments from Medicaid, which are for FY27. The amount requested for rate adjustments is $1,106,411 in general funds.​

Continued Operational Needs – Due to escalating workforce expenses to meet the needs of Mississippians served at DMH’s 24/7 programs, and reduction in funding related to vacant positions, this funding is requested to assist and restore operational costs needed to provide the current level of service. The amount requested is $6,328,194. ​

Replacement of State and Local Fiscal Recovery Funds – This is a request for replacement of a portion of legislatively appropriated funds that will end on or near December 31, 2026. These funds will continue operations of 988 call centers, court liaisons, crisis stabilization, and IDD crisis training. Without funding, these services will likely be discontinued. The general funds requested will provide approximately 75% of the FY27 funding when service coverage funding expires, which is near October 2026. The amount requested is $4,264,000. ​

Personal Services –Funding requested in salaries is to stabilize the DMH workforce and includes: longevity increases at 1% for employees with less than 15 years of service, and 2% for employees with at least 15 years of service; in-range salary adjustments for employees who have achieved completion of the qualifications for approved programs, or who need adjustment to be relatively on par with similar functioning employees. Also included are state program workforce needs specific to agencies within DMH for certain occupations that have been difficult to recruit and/or retain. The amount requested is $4,059,248. ​

Electronic Health Records – With the expected implementation of a new Electronic Health Record (EHR) system for DMH programs (IDD regional programs and behavioral health programs), funds are requested for ongoing operational support and maintenance of the system. Included in the request are general funds in the amount of $2,555,685 for the operating and state share portions, depending on the facility. ​

Information Technology Security – Information Technology Services (ITS) has revised policies, and DMH is requesting a roughly estimated funding for compliance with said policies beginning in FY27. The total is estimated at $3,000,000 in general funds for what is an evolving and recurring need to stay compliant with federal, state and other regulations related to information and its security against cyber-attacks. During the 2025 Regular Session, the Mississippi Legislature passed HB 1491 directing ITS to implement a Cloud Center of Excellence (CCOE) and set the goal for full statewide adoption of cloud services by July 1, 2027. The total annual recurring funding estimated, including one-time migration charges, is $477,353 for all DMH servers. 

Jackson County Crisis Stabilization Unit (CSU) – This request is for Region 16 (newly formed by Jackson County) to have CSU funding on a par with other Community Mental Health Centers (CMHCs). Since its inception, Region 14 has included George and Jackson County. In July 2025, Jackson County officially separated from Region 14 with a plan to operate its own CMHC, designated as Region 16. This new CMHC will provide services only in Jackson County and will be operating as South Mississippi Mental Health Center (SMMHC). Region 16 is in an initial certification period pending on-site health and safety reviews and additional DMH Division of Certification measures that must take place prior to full certification and service provision. Region 16 currently has a location for a 16-bed CSU; however, the previous Region 14 received a general fund grant for the operation of 8-bed CSU. This requested funding of $650,000 is the additional amount that will be needed for the operation of a 16-bed CSU for Region 16. ​

Capital Assets at DMH Program Locations – This is a request for equipment that is needed at DMH facilities, including a generator replacement at NMSH and six NMRC community group homes, and a boiler and a chiller replacement at SMSH. The amount requested is $2,098,942.​

CMHCs Operating Costs – This requested funding is in general funds $4,174,066 and consists of the top priority items that local CMHCs have requested to defray the increased costs associated with the services based on their estimates using inflation. These services are subrecipient general fund grants to the CMHCs and have generally not had inflationary increases in years: Community Support Services, Physician Services, and Community Living. ​