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For Immediate Release
Contact: Glenn Liebman, CEO, MHANYS
518-360-7916 gliebman@mhanys.org
February 3, 2026

Press Release
Advocates seek a 2.7% Targeted Inflationary Increase (TII), based on July 2025 CPI-U, to help mental health and substance use agencies tackle workforce shortages and rising costs while maintaining essential services.
(Albany, NY)- Advocates for New Yorkers with mental health and addiction related challenges, and the community-based organizations that support them are concerned with Governor Hochul’s SFY 2026-27 Executive Budget which falls short of what is needed for mental health and substance use disorder agencies’ operations and workforce. While some innovative projects are included in the proposed budget, the fundamentals of the mental health and substance use disorder system remain broken. Once again, the Governor’s proposal fails to adequately address workforce and agency needs with sufficient urgency.
The Governor’s proposed 1.7% inflationary increase is helpful but doesn’t include the minimum 2.7% required by July 2025 CPI-U to cover agencies’ cost-of-living expenses and support wages and benefits.
Access to mental health and substance use disorder services remain challenging for adults, children, and families in New York’s community-based care system. Agencies are facing rising costs and report a statewide job vacancy rate of 20%–30% by provider type, with turnover at 35% (August 2024 survey covering 43% of the OMH and OASAS community workforce).
The effectiveness of the Governor’s proposed new initiatives relies on adequate investment in the current workforce, operations, and services within mental health and addiction care, all of which are essential elements of our broader health care system.
We ask the Governor and Legislature to raise the Targeted Inflationary Increase to at least 2.7% for mental health and substance use disorder agencies in the SFY 27 budget, so services can meet the increased needs of New Yorkers.
“Failing to invest a full 2.7% inflationary increase will only accelerate workforce turnover, leaving providers unable to retain the experienced staff people rely on for consistent, trusted care,” said Luke Sikinyi, VP of Public Policy at the Alliance for Rights and Recovery. “Every time a worker is lost, people are forced to rebuild trust, restart their recovery journey, and risk falling through the cracks of an already overburdened system.”
“While a 1.7 percent increase is certainly preferable to no increase at all, it still represents a gap relative to inflation and the real-world costs of operating these essential programs,” said Doug Cooper, Associate Executive Director, Association of Community Living. “Providers continue to face outdated funding models, significant workforce shortages, and an urgent need to offer wages that reflect the complexity and intensity of care being delivered every day.”
“We are deeply disappointed that the Governor’s Executive Budget falls short of the urgently needed 2.7% Targeted Inflationary Increase (TII). New York’s substance use disorder and mental health providers are struggling to meet overwhelming demand for care,” said Allegra Schorr, President of the Coalition of Medication Assisted Treatment Providers and Advocates (COMPA).“Program staff are overworked and underpaid, vacancies average 20 to 30 percent, and operating costs continue to rise, while federal policy changes threaten to further destabilize an already fragile system. A 2.7% TII for behavioral health is not optional, it is essential to stabilize the workforce, sustain services, and protect access to lifesaving treatment. Without it, barriers to care will continue to grow a precisely the moment New Yorkers need these services most.”
“Once again, we are told that mental health is a priority, but the budget tells a different story. When the Targeted Inflationary Increase fails to keep up with inflation, it sends a clear message about whose needs are being overlooked. This is not just a budget gap, it is a human one. Underfunding community-based behavioral health services means longer waits, fewer supports, and more families left without the care they need,” said Paige Pierce, CEO, Families Together in NYS. “We cannot talk about equity, prevention, or well-being while allowing the systems families rely on to fall further behind. If New York is serious about supporting children, youth, and families, we must invest at a level that reflects the real cost of care. Raising the Targeted Inflationary Increase to at least 2.7% is the minimum needed to keep services stable and accessible for communities across the state.”
“Like other health conditions, early prevention and treatment dramatically improve outcomes for people living with a substance use disorder or mental illness. Yet New Yorkers continue to face months-long waits that unnecessarily lead to homelessness, hospitalization, and death,” said Sarah Duvall, Chief Research and Policy Officer, InUnity. “The major causes are known: severe and persistent workforce shortages, insurance obstacles, and unstable funding for care providers. After 15 years with no inflationary increases prior to this administration, services are still catching up. At a minimum, a 2.7 percent increase is necessary to keep pace with this year’s inflation.”
“While we appreciate the 1.7% targeted inflationary increase proposed in the 2026-27 Executive Budget for community-based, behavioral health not-for-profits, we urge the Governor and Legislature to increase this to 2.7% in the final budget,” said Glenn Liebman, CEO, MHANYS. “2.7% is the bare minimum needed for these agencies to just keep up with the rate of inflation as well as maintain these vital programs and workforce serving New Yorkers struggling with mental health and substance use disorder challenges. The rising costs are compounded by the increasing demand for services, which  will only increase given the federal cuts and changes to public health insurance programs, and the ongoing workforce recruitment and retention challenges.” 
“The Executive budget leaves this critical component of the mental health system behind. NAMI strongly supports the behavioral health workforce that serves individuals and families in their time of need, including adequate pay and reimbursement rates. A 1.7% cost-of-living adjustment is inadequate to recruit and retain staff necessary to meet the mental health needs of our communities,” said James Norton, Government & Community Affairs Manager, NAMI-NYS. 
“Our care management agencies continue to deliver essential support to adults, children and families dealing with mental health and substance use disorder challenges, often during crises. The 2.7% Targeted Inflationary Increase (TII), which must include High Fidelity Wrap for Children under OMH, will help cover rising costs, strengthen our workforce, and ensure vital care management remains available,” said Jackie Negri, Executive Director, NYS Care Management Coalition.
“Youth mental health providers are being stretched to the breaking point by rising costs and severe workforce shortages, and the consequences fall directly on children and families who are already struggling to access care,” said Kayleigh Zaloga, President & CEO of the NYS Coalition for Children’s Behavioral Health. “The Governor’s proposed 1.7% inflationary increase does not come close to covering real-world cost increases or stabilizing a burnt-out workforce. A targeted inflationary increase of 2.7% is the minimum needed to keep providers afloat and retain staff. If we fail to make this investment, we will perpetuate decades-old disparities in youth mental health care that have consistently denied families equitable access to timely, community-based services.”
“In September 2025, a statewide survey of NYS Council members revealed that 43% of our community mental health outpatient clinics have prolonged waiting lists, and they are often forced to temporarily restrict care due to their inability to recruit and retain the workforce they need to meet demand and comply with state regulations.  According to the CDC, youth suicide rates in NYS have increased over a 10-year period, and the ongoing opioid epidemic continues to bear down on communities of color, and other underrepresented populations. So, what’s the answer?  Local communities must have the ability to provide mental health and substance use disorder services on demand for community members who are begging for services and support.  We ask all NYS lawmakers to dig deep and ensure New Yorkers can find the help they need in a timely manner.  Nothing could be more important,” said Lauri Cole, Executive Director, NYS Council for Community Behavioral Healthcare. “
“We call on New York State to fully fund a targeted inflationary increase for human services as a matter of equity and basic fairness and in keeping with the governor’s overarching affordability agenda. New York’s direct service workforce makes up the backbone of our communities. They are parents, caregivers, and neighbors who face the same rising costs and challenges in making ends meet as the people they serve, said Pascale Leone, Executive Director, Supportive Housing Network of New York. “In a year when access to food assistance, health care, and other essential supports are under attack at the federal level, it is more critical than ever that New York step up and provide this basic stability. We are not seeking to remedy decades of underfunding, we are asking for a modest 2.7% increase that is in line with the Consumer Price Index so programs can keep pace and workers can stay in the mission-drive roles they are committed to. The Governor’s proposal of 1.7% falls short and the legislature must act to make our sector whole.”

The eleven agencies represented at the press conference are:
Association for Community Living, Coalition of Medication-Assisted Treatment Providers and Advocates of New York State (COMPA), Families Together in New York State, InUnity Alliance, Mental Health Association in New York State, National Alliance on Mental Illness New York State (NAMI), New York State Care Management Coalition, New York State Coalition for Children’s Behavioral Health, NYS Council for Community Behavioral Health Care, Alliance for Rights and Recovery, and Supportive Housing Network of New York