Iowa legislative panel agrees to mental health redesign

DES MOINES – An Iowa legislative conference committee has reached an agreement on a mental health redesign policy, but details of how it will be funded have been left to another House-Senate conference committee.

The conference committee report on Senate File 2315 must be approved by both chambers, but the committee chairs, Rep. Renee Schulte, R-Cedar Rapids, and Sen. Jack Hatch, D-Des Moines, expressed confidence their respective chambers will give their approval.

Under the statewide service delivery plan created by SF 2315, access to mental health services will be more equitable and not depend on where someone lives.

The bill calls for counties to maintain their property tax levy that generates about $125 million annually for mental-health services. Every county would levy the equivalent of $47.28 per person in property taxes for mental health services. Some counties levy less than that, so SF 2315 calls for the state to spend $18 million to “buy out” those counties. Counties levying more than $47.28 could maintain their current levy or lower their property tax asking.

It also calls for using $20 million in one-time federal money to help with the transition from a county-based mental-health system into a statewide effort where services would be administered regionally and delivered locally.

The conference committee report also spelled out how data on the counties' transition funding needs will be collected and presented to the Legislature later this year. Legislature leaders have indicated lawmakers will make a supplemental appropriation if needed.

Left unresolved, Schulte said, is how counties' cost of Medicaid-funded services will be bought out. Hatch and Schulte said a conference committee resolving differences on the health and human services budget is expected to include $40 million to cover those costs.

That committee is scheduled to meet later today.