OTTAWA COUNTY, MI — Ottawa County leaders want to look at restructuring the Community Mental Health department because of state funding issues leading to budget deficits.
County commissioners on Tuesday, Jan. 13, voted to set three public hearings to take public comment on transitioning CMH to an authority, instead of a county department.
The move, which could take up to a year to accomplish, would insulate the county from financial liability because of budget deficits.
The authority would be a separate entity from the county and be governed by a board of directors. All but five Michigan counties now are part of mental health authorities.
CMH is predominantly funded by Medicaid, but Ottawa County leaders say the monies provided fall below the department’s budget.
The 2025 CMH budget, while not yet closed, is projected to have a $5 million budget deficit.
County leaders blame a Michigan Department of Health and Human Services funding model for the problem and say it “punishes” Ottawa County for having a relatively low number of Medicaid recipients needing CMH care.
They advocate for a “needs based” system where care is reimbursed based on the cost of services provided.
Under an authority, the state would be liable for covering CMH budget deficits.
While a majority of county commissioners on Tuesday supported setting the public hearings, several raised concerns.
County administrators in December conducted a survey of CMH employees, learning that many are concerned about job security.
The survey showed that employees realize their current benefits and wages are better than other mental health authorities across Michigan. They don’t want to lose that advantage.
Ottawa County CMH employees also say there is higher per-employee caseloads with authorities and higher burnout.
According to the 2024 Ottawa County CMH annual report, the department served about 4,500 individuals that year.
Among those, 1,827 were adults with mental illness, 1,040 were adults with substance use disorders, 917 were children with emotional disturbances, 707 were persons with an intellectual or developmental disability and 10 were children with substance use disorder.
Commissioner Joe Moss said he would rather spend time on advocating for changes in the state funding formula rather than “reconfiguring everything we’re doing to try to fix the state’s problem.”
But Commissioner John Teeples said the county needs liability protection.
“I think the community needs to understand this is a real problem,” he said. “We cannot ignore this.”
Ottawa County CMH has dozens of contractors, he said.
“If they don’t get paid, who are they going to sue? They’re going to sue us,” he said.
Teeples said he wants to hear what the public has to say about switching to an authority.
Even if county commissioners later vote to establish an authority, they could back out at any time before the state approves the move.
The public hearing dates set to take comment on the issue are as follows:
— 6 p.m. Monday, Jan. 19, at the Spring Lake Community Center, 15549 Cleveland St.
— 6 p.m. Tuesday, Jan. 20, at the Georgetown Township Public Library, 1525 Baldwin St.
— 6 p.m. Thursday, Feb. 5, at the Ottawa County Department of Public Health building in Holland Township, 12251 James St.