Putnam County Executive Kevin Byrne has proposed creating a new mental health services fund of more than $2 million, using county reserves after an earlier plan to finance a stabilization center with federal aid was abandoned.
The fund would be established by assigning money from the county’s unassigned general fund balance, a move that requires approval from the Putnam County Legislature for any future spending.
County officials said the proposal follows the collapse of a long-discussed plan to use American Rescue Plan Act (ARPA) funding to develop a 24/7 stabilization center. After that project failed to move forward after the Carmel Planning Board rejected the center’s site plan, the administration began looking for other ways to support mental health services while reallocating remaining ARPA dollars to eligible uses.
Byrne said the new fund would provide a dedicated source of local funding for mental health programs without the restrictions tied to federal aid.
The fund would be structured as an assigned fund, meaning it could only be used for mental health-related purposes. Specific expenditures would still require legislative approval.
County officials said the administration will work with the Department of Mental Health, Social Services and Youth Bureau to determine how the money should be spent. Potential uses include crisis services, outpatient care, youth programming, and community-based initiatives.
Mental Health Commissioner Sara Servadio said demand for services continues to grow across age groups and that additional funding could help expand programs and improve access to care locally.
Finance Commissioner William Carlin said the proposal is supported by the county’s financial position and would not require any borrowing.
In recent years, the county has expanded mental health efforts, including establishing a director-level position, creating a co-response team pairing law enforcement with mental health professionals, and working with providers such as Philipstown HUB, the Prevention Council and CoveCare Center.
The Legislature has not yet voted on the proposal.
Article provided by the County Executive's Office
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