Major state cuts proposed

Two state mental hospitals and as many as eight correctional facilities would close under state officials’ proposals to meet Gov. Robert F. McDonnell’s request for budget-cutting ideas.

State agencies’ proposals include deep cuts in state payments for community care for troubled youth and people with mental disabilities.

McDonnell spokeswoman Taylor Thornley said the governor is still reviewing the proposals.

“Difficult decisions will have to be made in the weeks ahead as we work to put together a balanced budget that maintains adequate funding for critical needs, mandated services and economic development programs,” Thornley said.

Among the biggest cuts agencies proposed is $22 million from closing the Northern Virginia Mental Health Institute in Falls Church. Staunton’s Western State Hospital is the main backstop for people from the state’s most populous region who need hospitalization for mental health treatment.

“I don’t think that would be a very good idea ... it’s the most populous region in the state, and it has its share of mental health issues,” Sen. Margaret Whipple, D-Arlington, said Thursday.

To meet McDonnell’s request for ideas for even more savings, the Department of Behavioral Health and Developmental Services also suggested closing Southern Virginia Mental Health Institute in Danville, saving another $10 million.

In notes prepared for legislators, the department said it had few other places to seek savings.

It said community mental health services endured cuts of nearly $25 million under the previous administration. Medicaid, the joint federal-state health care program for the poor and disabled, has also cut payments.

Still, to meet the deepest of McDonnell’s three budget cut targets, the department proposed cutting nearly $10.5 million from the local mental health agencies that provide the bulk of community care.

Cuts proposed by the state’s Medicaid agency would also affect mental health care, including:

— As much as $12 million in payments for community mental health services

— As much as $5.5 million for mental health case management

— As much as $4 million for day treatment services

Because state payments are matched by federal funds, the loss to local mental health agencies would be twice as large.

Sen. Emmett Hanger, R-Mount Solon, said the budget outlook didn’t appear to require prison closings of as many as six small correctional facilities and two prisons suggested by the corrections department.

He said Augusta County Correctional Center in Craigsville would not be a target, adding: “Augusta is not one that would be considered high-cost and outdated.”

Among other proposed cuts:

— Eliminating $5 million of state funds for Comprehensive Services Act programs for the state’s most troubled youth

— Making cities and counties pay a larger share of Comprehensive Services Act school programs, saving the state $3.9 million

— Cutting the state share of spending for foster care for troubled youth, to save $7.5 million

— Cutting operating rates that Medicaid pays to nursing homes, to save as much as $37 million; cutting rates for outpatient treatment to save as much as $19 million, cutting fees for doctors to save as much as $26 million.