Central Health Approved Budget with Mental Health Investments
Posted: Wed Sep 09, 2026 9:28 pm
Colleagues –
Tonight, the Central Health Board of Managers adopted their FY27 budget with a historic investment in mental and behavioral health in Austin-Travis County.
The Managers approved a $630 million budget with $127.5 million going towards essential brain health. Of significance, $54 million is new money for the most fragile in our community, including:
• $33.1 million for inpatient psychiatric beds and emergency department services at Dell Seton Medical Center for complex, high-acuity cases who have cycled through the systems repeatedly and with no place to go for long-term stabilization and care. This investment directly advances No Wrong Door, our regional effort to better coordinate care for people with complex behavioral health needs who too often cycle between homelessness, emergency rooms, and the criminal justice system.
• $16 million for planning and future operations for a comprehensive Mental Health Crisis Care Center being developed in partnership with Central Health and Travis County, Integral Care, and other community partners. The Crisis Care Center would create additional crisis stabilization and treatment capacity and provide alternatives to emergency rooms and jail.
• $1.5 million for jail-based and justice-involved health support.
• $1 million for additional psychiatrists, counselors, and case managers for complex, high-acuity cases. Health care professionals are a significant need to co-respond with frontline personnel interacting with persons in mental health crisis. Health care should have a health-led response.
• $1 million for Medication-Assisted Treatment expansion for treatment services provided by Integral Care.
• $1 million for long-acting injectables.
• $400,000 for additional Psychiatric Emergency Services provided by Integral Care.
This is an excellent commitment from our healthcare district to serve some of the most vulnerable healthcare needs of our residents who often have co-occurring mental health illnesses.
Our understanding and approach to mental health has evolved over the past few decades. We understand that mental health is no different from physical health. It’s brain health. This is part of Central Health’s founding mission of more than 20 years ago, and I appreciate our healthcare district taking this step to fulfill that mission.
For too long, gaps in our behavioral health system have meant that people with the most complex needs cycle between the street, emergency departments, jail, and other public systems without ever receiving the sustained care necessary to stabilize. That is costly for taxpayers, strains our public safety and health care systems, and—most importantly—fails the people we are trying to serve. These investments give us an opportunity to change that.
These are new and expanded services. No previously served individuals will receive diminished care. Better yet, expanding these services will reduce downstream costs and public safety interactions. This is what can be possible when someone gets timely and proper care the first time.
Brain health was top of mind for me in 2011 when I announced my proposal focused on elevating Austin in education and healthcare and growing our economy. Among these goals was to make Austin the leader in brain health in Texas. The establishment of the Dell Medical School at the University of Texas came out of that. The modernization of the Austin State Hospital was part of the goal and grew out of the funding I worked for in the Senate. While these are great accomplishments for our region, the demand for mental health care has only grown, and much faster than we’ve been able to keep up.
The Meadows Mental Health Public Policy Institute recently estimated that there are nearly 1,000 individuals experiencing co-occurring issues. By that, I mean people facing mental illness, substance abuse, homelessness, and/or are justice-involved. These individuals cost our local systems in Travis County an estimated $137 million each year. We should care about the fiscal impact on behalf of our taxpayers, and we should be doing everything we can to ensure the dollars we spend meet the greatest needs.
To be clear, we should absolutely care about our people. We are only as good as the people of this great city. And I believe we can do both. This work is precisely what No Wrong Door aims to do: to disrupt the continuous cycle of homelessness, severe mental illness, and jail by connecting this vulnerable population with resources through dedicated peer support and reducing public safety interactions. I’ve asked City staff to brief the City Council on No Wrong Door during the October 6th City Council work session.
In the meantime, I want to thank Central Health for its leadership and for working with us. I also thank Travis County for its shared commitment as partners. I look forward to what’s ahead. Make no mistake, this is what we can achieve when we work together.
Thanks
Kirk
On Behalf of Mayor Watson
Tonight, the Central Health Board of Managers adopted their FY27 budget with a historic investment in mental and behavioral health in Austin-Travis County.
The Managers approved a $630 million budget with $127.5 million going towards essential brain health. Of significance, $54 million is new money for the most fragile in our community, including:
• $33.1 million for inpatient psychiatric beds and emergency department services at Dell Seton Medical Center for complex, high-acuity cases who have cycled through the systems repeatedly and with no place to go for long-term stabilization and care. This investment directly advances No Wrong Door, our regional effort to better coordinate care for people with complex behavioral health needs who too often cycle between homelessness, emergency rooms, and the criminal justice system.
• $16 million for planning and future operations for a comprehensive Mental Health Crisis Care Center being developed in partnership with Central Health and Travis County, Integral Care, and other community partners. The Crisis Care Center would create additional crisis stabilization and treatment capacity and provide alternatives to emergency rooms and jail.
• $1.5 million for jail-based and justice-involved health support.
• $1 million for additional psychiatrists, counselors, and case managers for complex, high-acuity cases. Health care professionals are a significant need to co-respond with frontline personnel interacting with persons in mental health crisis. Health care should have a health-led response.
• $1 million for Medication-Assisted Treatment expansion for treatment services provided by Integral Care.
• $1 million for long-acting injectables.
• $400,000 for additional Psychiatric Emergency Services provided by Integral Care.
This is an excellent commitment from our healthcare district to serve some of the most vulnerable healthcare needs of our residents who often have co-occurring mental health illnesses.
Our understanding and approach to mental health has evolved over the past few decades. We understand that mental health is no different from physical health. It’s brain health. This is part of Central Health’s founding mission of more than 20 years ago, and I appreciate our healthcare district taking this step to fulfill that mission.
For too long, gaps in our behavioral health system have meant that people with the most complex needs cycle between the street, emergency departments, jail, and other public systems without ever receiving the sustained care necessary to stabilize. That is costly for taxpayers, strains our public safety and health care systems, and—most importantly—fails the people we are trying to serve. These investments give us an opportunity to change that.
These are new and expanded services. No previously served individuals will receive diminished care. Better yet, expanding these services will reduce downstream costs and public safety interactions. This is what can be possible when someone gets timely and proper care the first time.
Brain health was top of mind for me in 2011 when I announced my proposal focused on elevating Austin in education and healthcare and growing our economy. Among these goals was to make Austin the leader in brain health in Texas. The establishment of the Dell Medical School at the University of Texas came out of that. The modernization of the Austin State Hospital was part of the goal and grew out of the funding I worked for in the Senate. While these are great accomplishments for our region, the demand for mental health care has only grown, and much faster than we’ve been able to keep up.
The Meadows Mental Health Public Policy Institute recently estimated that there are nearly 1,000 individuals experiencing co-occurring issues. By that, I mean people facing mental illness, substance abuse, homelessness, and/or are justice-involved. These individuals cost our local systems in Travis County an estimated $137 million each year. We should care about the fiscal impact on behalf of our taxpayers, and we should be doing everything we can to ensure the dollars we spend meet the greatest needs.
To be clear, we should absolutely care about our people. We are only as good as the people of this great city. And I believe we can do both. This work is precisely what No Wrong Door aims to do: to disrupt the continuous cycle of homelessness, severe mental illness, and jail by connecting this vulnerable population with resources through dedicated peer support and reducing public safety interactions. I’ve asked City staff to brief the City Council on No Wrong Door during the October 6th City Council work session.
In the meantime, I want to thank Central Health for its leadership and for working with us. I also thank Travis County for its shared commitment as partners. I look forward to what’s ahead. Make no mistake, this is what we can achieve when we work together.
Thanks
Kirk
On Behalf of Mayor Watson