Bexar County officials and the Center for Health Care Services (CHCS) remain at odds over a multi‑million‑dollar financial dispute that could affect thousands of residents who rely on affordable mental‑health care.
Background of the conflict
CHCS, one of Texas’ 39 local mental‑health authorities, provides outpatient mental‑health, addiction recovery, and developmental‑disability services to adults and children in Bexar County. The agency operates a $154 million budget, with roughly half funded by the state, serving between 37,000 and 40,000 county residents each year.
The disagreement stems from a 2016 interlocal agreement that allowed CHCS to occupy a county‑owned outpatient clinic at 928 W. Commerce St. under a rent‑payment clause. In 2019 the parties added an amendment stating that rent could be redirected to satisfy the state‑required local match for mental‑health grant funding.
What each side claims
Bexar County asserts that CHCS owes up to $6 million in unpaid rent for fiscal years 2021‑2023. County Judge Peter Sakai wrote that the agency must cooperate with an independent audit, provide full financial records, and settle the alleged balance before any additional discretionary funding is considered.
CHCS counters that the rent payments were intentionally redirected to meet the state match requirement and therefore do not constitute a debt. The authority also claims the county owes it $2.8 million for mental‑health services it provided on the county’s behalf without a written contract or compensation.
Funding pressures
President and CEO Jelynne LeBlanc Jamison has warned that CHCS faces a $15 million budget shortfall for fiscal year 2027. If unresolved, the shortfall could force layoffs and reduce services for vulnerable residents.
“If local governments aren’t supporting community mental health, where are these individuals going?” Jamison asked. “They end up in the emergency department at University Health or in the county jail. Investing in the mental‑health authority is a better use of taxpayer dollars than paying for crisis care later.”
County’s stance
In a letter dated Aug. 21, Judge Sakai said the county will not approve further funding until CHCS agrees to a “properly structured” audit and confirms its cooperation. He emphasized responsible stewardship and the need for verified facts before allocating additional taxpayer money.
CHCS responded that it is willing to cooperate with an audit that meets its standards and offered an alternative dispute‑resolution framework, asking the county to accept it by the end of August.
Implications for residents
The stalemate threatens the continuity of services that help prevent mental‑health crises from overwhelming hospitals and the criminal‑justice system. Both parties argue that unresolved financial questions should not delay essential care for Bexar County residents.
County officials declined further comment, and CHCS has not indicated any change in its funding request strategy.
Original reporting: San Antonio Report — read the source article.
