Step 5: Navigating School-Based Mental Health Funding

Navigating School-Based Mental Health Funding

Ensuring that mental health services are provided in schools is more important than ever. According to SAMSHA, mental health issues in children and teenagers have been steadily increasing over the last decade or so with nearly 20% of U.S. teens between the ages of 12 and 17 reporting a major depressive episode in 2023. Students with mental health challenges often struggle academically and may experience social and emotional difficulties that linger well into adulthood if left untreated.

Schools offer a unique opportunity to provide high quality clinical care right where students spend most of their time outside the home. Yet many schools face challenges in funding crucial mental health services.

Here are five significant reasons why school-based mental and behavioral health care is essential:

• Early intervention can prevent mental and behavioral health issues from escalating.
• Clinical support in school can improve academic performance and student well-being.
• Schools can provide consistent and accessible care.
• Raising mental health awareness can create a positive school environment.
• Investment in mental health and behavior management can lead to long-term benefits for society.

Challenges to Implementing Funding for Mental Health Services in Schools

Many schools understand their crucial role in supporting overall student wellness, but implementing or expanding mental health services is not always straightforward. One of the most significant hurdles is funding. Nearly half of school administrators identify funding as a top concern when it comes to student mental health, and over 55% state that they do not have enough information on how to access available funding.

Securing funding for school-based mental health initiatives is often an arduous task, requiring administrators to piece together resources from numerous sources. Schools need a simpler, more sustainable funding model and clear guidance on accessing these resources to ensure the continuity of their mental health programs.

How School Districts Can Secure Mental Health Funding

Most schools typically start with traditional funding sources like AWARE, Title I, Title II, Title IV, and IDEA funds, which are valuable options along with the soon-to-expire federal ESSER funds*.

However, there are many more opportunities to explore for additional mental health funding in schools. Here are our recommendations for steps districts can take to discover new sources of support for their mental health initiatives and sustain both current and future programs.

• Ensure senior district administration and finance staff are educated on the full range of options to sustainably fund mental health services. This includes exploring:
  • • Federal funding opportunities
    • State and local funding opportunities
    • Grants
    • Public-private partnerships
    • Innovative funding models
    • Education Related Mental Health grants

*ESSER Funds – Expiration Deadlines and Extensions: ESSER funds expire in September 2024, with most states setting a deadline of September 30 and some extending it to mid-October. Districts must commit all funds by September 30, 2024, and have until January 31, 2025, to spend them. The U.S. Department of Education offers up to 14 additional months for late liquidation if districts provide detailed justifications and plans to their state education departments.

• Monitor available mental health grants and apply for relevant opportunities where the district is eligible. Stay updated on grant announcements, deadlines, and application requirements from various sources, including federal and state agencies, private foundations, and nonprofit organizations. Here are some helpful websites to find mental health grants and initiatives:
  • SAMSHA, Substance Abuse and Mental Health Services Administration
  • Grants.gov
  • Department of Justice

• Explore self-funding mental health initiatives through reducing outside therapeutic placements. Districts often spend millions of dollars sending students to private therapeutic day schools and other outside placements. While some students need the specific skills a specialized school offers, many students who are sent to outside therapeutic placements because of behavioral or emotional challenges could be supported in the “least restrictive” environment of the public-school system if the right supports existed.

Recommendations for Policymakers to Help Schools Access Mental Health Funding and Other Resources

While school districts should explore additional financial options, it’s crucial not to overlook the influence federal and state policymakers can have in helping districts secure resources for their mental health initiatives. Here are our recommendations for federal and state policymakers:

• Create mental health sustainability funds to ensure successful transition away from Elementary and Secondary School Emergency Relief (ESSER)-based funding.

• • Publish frequent articles, blogs and infographics with links to resources on the successful use of ESSER funds prior to state mandated deadlines and how to request an extension until March 2026.

• Create a sustainable mental health funding guide for LEAs.

• Write and publish a funding guide with links to resources, clear How-To information on applying for grants and other funding sources.

• Create a website devoted exclusively to sustainable mental health funding for school districts including up-to-date state and federal information and grant opportunities, resources, deadlines, extensions and any recent changes to state and federal policies.

• Establish permanent funding entitlement streams for mental health initiatives, with an overarching goal of simplifying how mental health initiatives are funded. This involves creating dedicated budget lines within state or federal financial frameworks that are specifically earmarked for mental health services. By doing so, state and federal policymakers can ensure a stable and predictable flow of resources, reducing reliance on temporary grants and one-time funding.

• Expand Medicaid to cover school-based mental health care for both special education and general education students. This expansion would involve advocating for policy changes at the state and federal levels to include comprehensive mental health services under Medicaid’s reimbursable programs. By broadening Medicaid coverage, schools can access additional funding to provide a wide range of mental health support, including wellness counseling, therapy, and crisis intervention.

• Adopt legislation that requires private insurance and/or Medicaid to fund school-linked mental health services according to a state-wide fee schedule (e.g., AB133 in California). This legislation would standardize the reimbursement rates for mental health programs in schools, ensuring consistency and parity across the state. Legislation would also decrease the financial burden on school districts and promote equal access to mental health support for all students, regardless of their socioeconomic status or background.

• Incentivize use of school-based mental health programs versus expensive outside therapeutic placements. Here are a few examples of potential incentives:

• • Increased Funding and Grants: Provide additional funding and grants specifically for school-based mental health programs. These funds could be used to hire more mental health professionals, train staff, and develop comprehensive mental health curricula, making in-school programs more attractive compared to outside therapeutic placements.
  • Tax Incentives and Rebates: Offer tax incentives or rebates to school districts that successfully implement and maintain effective school-based mental health programs. This financial relief can motivate districts to invest in their own programs rather than seeking outside therapeutic placements.
  • Legislative Mandates and Support: Pass legislation that prioritizes school-based mental health services and requires districts to exhaust these options before considering outside therapeutic placements. Accompany this with support for implementing these services, including guidelines and best practices.
  • Partnerships with Mental Health Providers: Facilitate partnerships between schools and mental health providers. By integrating these services, schools can offer comprehensive mental health care on-site, making it a more convenient and cost-effective option compared to outside therapeutic placements.
  • Performance-Based Funding: Implement performance-based funding models that reward schools for improving student mental health outcomes through school-based mental health programs. Schools demonstrating successful mental health interventions and reduced reliance on outside therapeutic placements could receive additional funding, creating a strong incentive to prioritize and enhance their mental health services.

The key to making sure your district has a sustainable plan for funding mental health initiatives is simple: make mental and behavioral health a priority. A school district’s budget reflects the priorities it establishes and the choices it makes, and there is no greater priority than the mental and behavioral health of our young people. By ensuring your district has multiple sources of sustainable funding for these types of programs in school, you can feel confident going forward that you are giving your students their best chance to succeed in every area – academically, socially, and emotionally.