Nelson Smith, commissioner of the Department of Behavioral Health and Developmental Services, told the Senate Finance Appropriations Subcommittee that state behavioral health facilities face widespread aging systems and urgent life‑safety needs and that his department has an immediate capital requirement presented to the committee as $182 million.

Smith said the department operates 12 facilities — including eight adult behavioral health hospitals, one children and adolescent behavioral health hospital, one center for behavioral rehabilitation, one training center and one medical long‑term care facility — with more than 2,000 beds, about 4.2 million square feet across some 130 buildings on roughly 2,000 acres, more than 5,500 employees and just under 2,000 patients on an average day. He said many facilities are more than 50 years old and seven of the 12 have exceeded their useful life.

The commissioner described a pattern of emergent procurements: "Since this past year I've declared 11 emergencies," he said, and those emergency procurements have exceeded $56 million in the current year. Smith said ARPA funds the agency requested for capital were fully obligated to highest‑priority projects and noted escalating construction costs have produced shortfalls on existing projects.

Smith reviewed projects already funded and underway, including $55.7 million appropriated in 2025 for capital infrastructure improvements. That package, he said, includes $24.3 million for Eastern State Hospital (including a $7 million emergency supplement for Building 1 and $17.3 million for Building 2 security and safety work), $20 million for life‑safety supplements, HVAC replacement at Southwestern Virginia Mental Health Institute, rooftop unit work at the Commonwealth Center and boiler upgrades at Piedmont Geriatric Hospital, and $11.4 million to address heating and hot water at Hiram Davis Medical Center and Central State Building 94.

On Hiram Davis, Smith said the facility has experienced raw sewage leaks in recent years, plumbing deterioration, Legionella risk that required mitigation with the Virginia Department of Health, and repeated HVAC and elevator failures. He said the department plans a closure process for the old Hiram Davis building and aims to keep operations safe through that transition, estimating closure around 2027 and that interim repairs will remain necessary while planning and procurement proceed.

Smith said the agency plans to pursue community placements and renovations for smaller residential homes when feasible. He estimated renovating two homes in one community would cost about $1.5 million per home to meet skilled‑nursing‑level needs, and said licensing and staffing upgrades would follow.

The commissioner described proposed amendments to the Governor's budget, including an additional $52.1 million in fiscal 2026 to address an overall $182 million shortfall, and listed projects the funds would support: HVAC and duress systems at Catawba Hospital, renovations at the Commonwealth Center, security and access control at Piedmont Geriatric Hospital, security and window replacement at Southwestern, and temporary heat and hot water solutions at Hiram Davis. He said many requests are life‑safety driven and that annual market escalation has driven project cost increases of roughly 25% year over year on some projects.

Committee members asked for clarifications. Senator Deeds raised questions about funding for renovations at Brook Down Chesapeake if Hiram Davis patients move; Smith said that planning is proceeding in parallel with the work group process and that definitive decisions require completion of code‑mandated steps. Senator Dixon asked whether the $11.4 million line item is dedicated to Hiram Davis; Smith said the amount supports Building 94 work at Central State and Hiram Davis band‑aid solutions to maintain heat and hot water while longer‑term work proceeds.

Smith closed by describing the department's project management capacity: an expanded team with about 14 employees in the environment of care group and recent record of obligating ARPA funds and advancing multiple projects. He asked the committee to consider additional funding to address immediate life‑safety needs and rising project costs.