Use it or Lose it! County Again Debates Mental Health Funds

By Holly Crocco

With more than one community voting down a crisis stabilization center within its borders, Putnam County is left with $2.1 million in federal funding that was attached to the project and which will need to be returned if a compatible project isn’t selected soon.

The county original planned to utilize American Rescue Plan Act funding to contract with People USA to create and operate a 24/7 crisis stabilization center, which has repeatedly been shot down by communities – the most recent of which was proposed in the hamlet of Carmel, but voted down by the Carmel Planning Board after much public concern.

Legislators discussed the status of ARPA funding for public health and mental health services during a special meeting of the county’s Health Committee meeting April 23.

“This project represented a significant public investment in behavioral health and crisis stabilization services and as we all know the original proposed site did not move forward, but the funding – and the obligation, and the public health need – simply didn’t just disappear with that decision,” said Legislator Nancy Montgomery, D-Philipstown, who has been an advocate for a crisis stabilization center since the onset.

During the meeting, she asked members of the administration, “Where do we stand?”

Putnam’s Director of Compliance & Intergovernmental Relations Jennifer Caruso said that both the county and People USA agreed to terminate the contract “for convenience,” since it’s virtually impossible to expend the funds by the June 1 deadline.

“As of today (the contract) is terminated,” added Anna Diaz, senior deputy county attorney in the Putnam law department.

With the center axed, Commissioner of Finance Bill Carlin explained that the county needs to either reallocate and spend the $2.1 million in ARPA funding – and fast – or send it back to the federal government.

Therefore, the administration is proposing the county put the $2.1 million toward road paving. 

“This is not an ideal situation,” said Carlin. “In talking with consultants, we feel the path of least risk is to proceed with paving, which was one of the original options when ARPA was developed. It was developed mainly for infrastructure.”

He also noted that County Executive Kevin Byrne is still “very aware that there are mental health issues in this county.”

In fact, Byrne announced in early April his intention to move $2 million from the county’s robust reserves to create a new Mental Health Services Fund, which he said will protect and honor the county’s commitment to addressing the growing mental health needs throughout the region.

The fund is in the process of being finalized

By reallocating ARPA funding to other eligible projects and assigning these funds from the county’s unassigned fund balance, Byrne said the county will create a dedicated, flexible funding stream for mental health initiatives that is not constrained by federal restrictions.

Still, some legislators still want to see the ARPA funds put toward mental health services as well.

Montgomery expressed frustration that the administration was so quick to redirect the funds, and didn’t make an attempt to put them toward a program that could provide “crisis stabilization services,” instead of operating as a full “crisis stabilization center.”

“So up until today, that money was contracted with People USA, (and) you’ve been inquiring with Treasury while that contract was still active, whether or not we could take that money and use it for paving,” she said. “Was there any attempt of the administration to amend that contract to keep it in mental health?”

Caruso emphasized that time to spend the ARPA money is by the end of this year.

“In order to have a new project and get it in place and have that spending be accomplished, going through an RFP process and a contract with a new vendor for a new project, it would not be spent in time, realistically,” she said. “It would be great to put the ARPA funding to another mental health project. We simply do not have one… We’re just trying to make the best out of this scenario we’ve been presented with.”

Legislator Dan Birmingham, R-Southeast, said he believes the county could still find a way to devote the funds to mental health services.

“I’ve got a problem with taking human services dollars and spending it on black top,” he said. “We’ve heard from our commissioner, from our sheriff… there’s a lot more mental health issues in our criminal system, in our social services system.

“I don’t necessarily want to see the money go back to the feds, either,” continued Birmingham. “But if we’re going to do that we should hear from all stakeholders, including ‘pave baby, pave…’ If we’re going to take human services dollars to do that we better have a damn good reason – and it better be better than we just don’t want to send it back to Washington.”

Discussion on the matter continued at a special April 27 meeting of the county’s Budget Committee, when it was affirmed that People USA would like to offer crisis stabilization services at a location it leases in Garrison, known as the Rose House.

Amy Grzybinski of People USA said an architect has already been employed to help with the proposal.

“He’s already drawn a full set of construction plans,” she said. “They’ve already been approved by the state regulatory, the Office of Mental Health… They’ve already been submitted and approved so were ready to go.”

Montgomery explained that the organization was interested in purchasing the property “way before ARPA,” and now that the stabilization center has been nixed in Carmel, the idea has come back around.

“We’re not considering a stabilization center in Garrison, we’re considering continuing the use of the property that is already providing stabilization services,” she said, noting that if the county doesn’t step up, it’s likely the property will be sold and People USA will need to relocate – outside of Putnam – because without the ARPA funds, the agency can’t afford to buy the property.

This was news to Commissioner of Mental Health, Social Services & Youth Bureau Sara Servadio, who stated at the meeting, “This is the first time I’m hearing about this.”

“Being able to purchase (the building) outright would certainly give us a stronger foot here in Putnam County,” said Rebecca Valk, who serves as counsel to People USA. “We can get a little bit closer to some of these services that Putnam County is looking for, but we have not found a community that does not seem to be sacred of the individuals we serve.”

Legislator Tommy Regan, R-Brewster, said mental health services should remain under the purview of the Department of Social Services.

“We have a commissioner of DSS, and the fact that she was unaware of possible changes, of possible plans, is a concern to me because what I am hearing-slash-feeling is that if we enter into an agreement with People USA, we’re running parallel – we’re doing Sara’s job,” he said. “I feel that mental health services and DSS should be run through Sara’s office.”

Legislator Jake D’Angelo, R-Carmel, said he doesn’t like that the Legislature’s decision on what to do with the ARPA funding is being driven by either supporting the Rose House or completing paving projects.

“I would rather see us just table this,” he said. “Let’s take a breath on this. Let’s not spend $2.1 million without knowing what comes next.”

Legislator Laura Russo, R-Patterson, agreed.

“With this whole process, we don’t have all of the information,” she said. “We don’t know how much this building costs, if we can make these changes, if the contract can be amended… Let’s ask the appropriate people between now and our full meeting on the fifth (of May).”

Following the meeting, County Executive Byrne expressed frustration over the Legislature debating the $2.1 million in ARPA funds that could go to paving, when “they know full well there is $2 million put aside for mental health services.”

“When it comes to the crisis stabilization center, no one has been more supportive than me,” he said. “They want to support it now, but where have they been the past three years?”

Further, if the county can’t agree on an expenditure for the APRA funds, Byrne said Putnam can kiss that money goodbye. “The Legislature will be responsible if we have to send $2.1 million back to the federal government.”