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State board pushes mental health funding, citing potential $300M in savings
MMental health

State board pushes mental health funding, citing potential $300M in savings

  • August 8, 2025

LINCOLN, Neb. (KOLN) – Nebraska’s State Advisory Board for Behavioral Health is calling on lawmakers to secure funding for long-term mental health and substance abuse treatment.

During its quarterly joint meeting Thursday, the board and the Committee on Substance Abuse discussed how incoming federal funds should be used in Nebraska.

The board provided feedback to help state senators make well-informed budget decisions, particularly on supportive housing for people with mental, physical and emotional disabilities.

“We give advice based on what we experience and see in the community to provide that feedback to the state so they can make appropriate decisions on how to spend federal and state dollars,” said Tim Heller, chairman of the advisory board.

Heller pointed to assisted outpatient therapy — a court-ordered form of mental health treatment — as a potential solution. He said implementing such a program could save Nebraska $300 million or more.

“It reduces homelessness, it reduces crime, it reduces hospitalizations, it reduces incarcerations,” Heller said. “By providing case workers to people with mental illness, it allows them to live in the community successfully by having those resources.”

Assisted outpatient therapy is used in Louisville, Kentucky, where mental health-related crimes and hospitalizations have dropped significantly. Data from that program includes:

40% decrease in arrests79% decrease in mental health-related emergency room visits86% decrease in psychiatric hospitalizations57% decrease in incarceration of individuals with mental illness

Heller compared those results to Omaha statistics, estimating similar savings:

40% decrease in arrests – average $1,000–$2,000 per arrest, totaling about $40 million saved79% decrease in mental health-related ER visits – about 10,000 visits a year at $500 each, saving $40 million86% decrease in psychiatric hospitalizations – at roughly $7,100 per visit, saving $61 million57% decrease in incarcerations – saving an estimated $132 millionDecrease in homelessness

In total, he estimated more than $300 million in potential savings.

“Implementing a program like this can be done for $100 million — you would still have $200 million saved,” Heller said.

The board’s recommendations will be distributed to state senators ahead of future funding decisions. Members of the committee stressed the importance of investing in programs with long-term outcomes.

Heller also encouraged leaders to review resources from the Treatment Advocacy Center in Washington, D.C., which supports assisted outpatient therapy nationwide.

“The things I’d like to see is that we improve addressing severe and persistent mental health,” he said.

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  • Tags:
  • Health
  • Mental health
  • MentalHealth
  • Nebraska Division of Behavioral Health
  • State Advisory Board
  • State Advisory Committee on Mental Health Services
  • State Advisory Committee on Substance Abuse Services
  • Substance abuse
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