Central Health Focusing on Travis County’s Mental Health Crisis in Fiscal Year 2027 Budget

AUSTIN, Texas—When someone in Travis County experiences a mental health crisis, there is no dedicated psychiatric emergency department or comprehensive crisis center designed to immediately get the person the right level of care.

They end up in a hospital emergency room, jail, or back on the street, where their condition worsens and the cost of caring for them climbs.

Central Health’s proposed fiscal year 2027 budget is built to address this community challenge—and many more.

“We’ve heard a clear and growing sense of urgency from elected officials, community organizations, and patients about our region’s mental health crisis, and the need for Central Health to work alongside the city, the county, and other partners on comprehensive, long-term solutions,” said Dr. Pat Lee, Central Health president and CEO. “Mental health is health care, and our FY 2027 budget proposes meaningful investments to expand access to the right care, at the right time, for more people.”

On Wednesday, the Central Health Board of Managers voted to set the maximum proposed tax rate for FY 2027 at 8% above the no-new-revenue rate. A no-new-revenue tax rate is the rate designed to bring in roughly the same amount of property tax revenue from existing properties as the year before. This procedural vote allows Central Health to move forward with a public hearing on a proposed tax rate Wednesday, Sept. 2, while preserving the Board’s flexibility as the budget is finalized. The Board may ultimately adopt a lower rate, including a 6% increase or a no-new-revenue rate, as discussions continue. As Travis County’s hospital district, Central Health is primarily funded by local property taxes.

For the median Travis County homestead valued at $372,638, an 8% rate would raise the annual Central Health portion of the tax bill by about $44. A 6% rate would raise it by about $36.

“Our board understands the very real challenges facing families across Travis County, and we take seriously our responsibility to both our patients and taxpayers,” said Geronimo Rodriguez, chair of the Central Health Board of Managers. “This budget is about continuing to build the comprehensive health care system our community needs while being thoughtful and intentional with every taxpayer dollar.”

The proposed budget includes two new mental health investments for the Board’s consideration. The first provides capital and first-year operating funding to support inpatient behavioral health services that do not currently exist. The second establishes a $7.3 million mental health reserve to help fund future operations of a mental health crisis center being discussed with the City of Austin, Travis County, Integral Care and other community partners. The reserve would carry forward and grow each year to support future operating costs.

Together, the proposals represent a potential $27.3 million investment in components of No Wrong Door, a coordinated crisis response initiative launched this year by the City of Austin with Travis County and 15 other partners, including Central Health. The goal is simple: no matter where people in crisis enter the system, they should be connected to the right care instead of cycling between the streets, emergency rooms and jail without receiving sustained mental health treatment.

Central Health would also align existing services with the initiative, including clinicians embedded with homelessness response teams, mobile crisis services across the community, and ongoing clinical support for people living in city-funded shelters and permanent supportive housing.

In the draft budget presented by staff, Central Health would operate a total of 22 inpatient psychiatric beds and a mental health crisis center with about 60 adult and pediatric beds. The Board will vote on the proposed FY 2027 budget on Sept. 9.

Travis County Judge Andy Brown and Austin Mayor Kirk Watson have both raised the urgency of the county’s mental health gaps during the FY 2027 budget process. In a letter to the Board on Aug. 25, Watson described the need for inpatient and high-acuity psychiatric capacity as immediate.

Expanding Services in 2027

Beyond mental health, the proposed budget includes $27.3 million in strategic investments:

• Access to care ($18 million): New providers in general surgery, podiatry, cardiology, nephrology, neurology, and oral surgery. Adds a complex primary care team at the Travis County Jail and a Rapid Access Clinic for patients leaving the hospital or emergency department.
• System infrastructure ($5.4 million): Cybersecurity, data systems, and facilities support, including Phase 2 of the Hancock campus opening in January 2027.
• Workforce ($2.6 million): Clinical education, leadership development, and more.
• Community support ($1.3 million): Startup costs for the Central Health Foundation and expanded capacity to grow non-tax revenue.

The budget also includes $117.5 million for CommUnityCare Health Centers, Central Health’s federally qualified primary care network, and risk-based capital for Sendero Health Plans, also part of the Central Health system, to meet Texas Department of Insurance requirements. Together, Central Health, CommUnityCare Health Centers, and nonprofit Sendero Health Plans form a connected health care system designed to help Travis County residents with low-income access and navigate the care they need.

Building on 2026 Results

The proposed budget builds on Central Health’s FY 2026 Year of Access initiative, which focused on faster, more connected care. Results include:

• CommUnityCare Health Centers expects to serve more than 150,000 patients this year, with visits up 6% through June. More than half of those patients are uninsured.
• Central Health completed more than 39,000 specialty care appointments through July.
• CommUnityCare Health Centers reduced new-patient primary care wait times by nearly 37% with some appointments now available in two weeks.
• MAP (Medical Access Program) and MAP Basic enrollment reached 133,041, up from 116,732 two years ago.

Watch the Commissioners Court presentation: https://traviscotx.portal.civicclerk.com/event/3702/media

Delivering on a Seven-Year Commitment

In 2022, the Central Health Board of Managers committed more than $750 million over seven years to close critical gaps in Travis County’s health care system.

Central Health is delivering on that commitment by expanding care closer to home, with 35 clinical sites, including new and expanded locations in Del Valle, East Austin, and Hornsby Bend. Over the past three years, Central Health also launched more than 30 new specialty and diagnostic service lines to help patients get care sooner.

By directly providing essential services like cardiology, behavioral health, and women’s health, the Central Health system is reducing wait times and building a fully connected network of primary and specialty care for Travis County residents.

What Comes Next

The FY 2027 budget process continues through September. The public can attend the following meetings and events:

• Aug. 31: Community Conversation at Austin Community College Highland, co-hosted by Travis County Judge Andy Brown. Open to the public.
• Sept. 2: Public hearing on the FY 2027 budget and tax rate before the Board of Managers. Public comments are welcome.
• Sept. 9: Board of Managers votes to adopt the FY 2027 budget and tax rate.
• Sept. 15: Travis County Commissioners Court votes to approve the FY 2027 budget and tax rate.

Resources

View the FY 2027 Budget Presentation: https://cdn.intelligencebank.com/us/share/BnK4M4/74AZO/MPNO7/original/08.26.2026+Proposed+Tax+Rate+%26+Budget