Statement from Debra L. Wentz, PhD, President and CEO, NJAMHAA
Governor Mikie Sherrill delivered her first budget address today, presenting a Fiscal Year 2027 proposed budget totaling $60.729 billion. The proposal includes $2.6 billion in savings and budget cuts, fully funds the state pension system, and does not raise taxes on individual New Jerseyans. NJAMHAA acknowledges the difficult fiscal environment in which this budget was developed and recognizes the Governor's effort to prioritize the health and well-being of New Jersey residents amid significant financial constraints at both the state and federal levels.
NJAMHAA is cautiously optimistic about several provisions in the proposed budget that reflect meaningful recognition of behavioral health as a core public need. The proposed $513.5 million for the Children's System of Care, including an increase over the FY 2026 level of $498.75 million, signals a continued commitment to the children and families who depend on these services. The $154 million increase for the Division of Developmental Disabilities is likewise a significant and welcome investment, and the maintenance of $20 million for the ARRIVE (Alternative Responses to Reduce Instances of Violence & Escalation) Together Program demonstrates an understanding of the connection between public safety and behavioral health. NJAMHAA is also supportive of the $582 million for childcare assistance, $7.2 billion in state Medicaid funding, and $25 million for rapid re-housing programs, all of which directly affect the stability and well-being of the populations our members serve.
With respect to youth mental health, NJAMHAA acknowledges the $33 million allocated for SPARK (School-based Partnerships and Resilience for Kids), the new school-based mental health initiative designed to expand services for students with complex, high-acuity needs. However, the transition away from NJ4S (NJ Statewide Student Support Services) raises real and immediate concerns about continuity of care and the capacity of community providers to absorb disruption while simultaneously meeting growing demand for services. NJAMHAA urges the Administration to ensure that experienced community behavioral health providers are active partners in the planning and implementation of SPARK and respectfully requests a formal seat at the table in that process.
NJAMHAA remains attentive to the gaps that this budget has yet to fully address. Community-based care for adults living with severe mental illness, substance use disorder treatment and recovery services, and behavioral health workforce development are areas of urgent and growing need that must be prioritized as budget deliberations continue. Our member agencies are on the front lines every day, providing cost-effective, community-based alternatives to emergency and inpatient care and they need sustained and increased investment to continue doing so. Their work saves millions for the state’s bottom line.
NJAMHAA looks forward to working collaboratively with the Administration and state legislators to ensure that the needs of the vulnerable individuals and families served by our member agencies are fully reflected in the final FY 2027 budget. New Jersey's behavioral health system is a lifeline for hundreds of thousands of residents living with mental health conditions, substance use disorders, and developmental disabilities. A strong, well-funded community behavioral health infrastructure is not only the right thing to do for New Jerseyans; it is also among the most fiscally sound investments the state can make. NJAMHAA remains committed to serving as a constructive and engaged partner to the Sherrill Administration, the Legislature, and all stakeholders as we work together toward a budget that truly serves all New Jerseyans.
