Lane County OKs 18-Month Behavioral Health Funding Agreement with OHA

Lane County’s Board of Commissioners voted unanimously on Jan. 6 to enter an 18-month County Financial Assistance Agreement, or CFAA, with the Oregon Health Authority. The board and county staff characterized the contract as an interim but improved framework following months of stalled statewide negotiations over funding, compliance standards and county responsibilities for behavioral health services.

County staff said the agreement contains several provisions designed to protect local interests. The CFAA includes protections related to federal litigation exposure, a clarified description of how services are to be prioritized to align with local plans and budgets, and an added “reasonableness” standard to the definition of substantial compliance. The agreement also establishes a joint process for revising local plans, creating a mechanism for counties and OHA to collaborate on operational details and policy adjustments during the term.

The 18-month term was presented as a deliberate choice to buy time for counties and the state to further negotiate and operationalize longer-term terms. County officials emphasized that the contract funds behavioral health safety-net services, including aid-and-assist forensic populations, while explicitly not obligating counties to rapidly construct residential infrastructure. That distinction addresses a major concern among local officials about unfunded mandates and the pace at which county facilities would be expected to expand.

For Lane County residents, the immediate effect is protection of core behavioral health services for vulnerable populations and continuity of funding streams that counties use to support crisis response, outpatient care and court-related competency services. Municipal budgeting and service prioritization will be conducted under clarified standards that county leaders say better reflect existing local plans and fiscal constraints.

The CFAA’s “reasonableness” standard and joint revision process have practical implications for how compliance disputes are resolved and how future plan changes will be negotiated. Those provisions may reduce the threat of punitive actions tied to strict technical compliance and allow room for local conditions to shape service delivery.

With the agreement now approved, the next 18 months will be critical. Counties and OHA must translate interim language into operational practices, reconcile outstanding points from prior negotiations and determine whether a longer term arrangement will replace the interim CFAA. For now, county officials framed the agreement as a compromise that stabilizes funding and clarifies obligations while preserving local discretion over service priorities and capital commitments.