Mental Health Matters: Tackling the School Funding Puzzle

As schools across the country work to meet the growing mental health needs of students, many face a common barrier: funding.

In the latest episode of the Stepping Stones for Mental Wellness podcast, I sat down with Mark, our Growth Officer at Stepping Stones Mental Health Division, to discuss how schools can overcome financial challenges and build sustainable systems of care. 

With years of experience across K-12 and higher education mental health, Mark offered a grounded and hopeful perspective on how districts can maximize the resources available to them—and why strategic partnerships are key. 

🎯 Why Funding for Mental Health Still Feels So Hard 

Mark shared three of the most persistent challenges districts face when navigating mental health funding: 

1. Complexity: Juggling multiple funding streams, each with its own rules, creates administrative burdens—especially for teams already stretched thin. 

1. Lack of Long-Term Strategy: Funding is too often used reactively rather than being integrated into a broader, sustainable mental health framework. 

1. Accountability & Capacity: Districts need more than staffing—they need clinical oversight, compliance support, and measurable outcomes. 
   

“That’s where we come in,” Mark noted. “To help districts reduce stress and focus on what matters most—student well-being.” 

🌉 California’s CYBHI: A New Era of Opportunity 

Mark highlighted California’s Children and Youth Behavioral Health Initiative (CYBHI) as one of the most exciting developments in the education and health landscape. With $4.7 billion invested, CYBHI supports: 

• Services delivered in schools 

• Integration with community and insurance-based systems 

• Capacity-building for early intervention and prevention 

Unlike time-limited funding like ESSER, CYBHI lays the groundwork for long-term, system-level change. 

🏥 Unlocking the Power of Medicaid Reimbursement 

Many districts underutilize Medicaid due to the perceived complexity of reimbursement. Mark explained that confusion around eligibility and documentation often prevents schools from accessing what could be a stable and sustainable revenue stream. 

Stepping Stones supports districts by: 

• Streamlining documentation and compliance 

• Embedding Medicaid-aligned practices into daily service delivery 
• Providing training and system support for long-term success 
  

📊 Aligning Resources with Student Needs 

The most effective funding strategies are data-driven. From absenteeism to behavioral incidents and IEP trends, Mark emphasized the importance of using local data to: 

• Identify real student needs 

• Inform program planning 

• Track outcomes over time 

“Every dollar should drive real impact,” Mark said. “That’s why we connect funding to outcomes and support clinical oversight every step of the way.” 

🧭 Real Stories, Real Solutions 

Mark shared inspiring stories from Georgia, New Mexico, and other districts where Stepping Stones has helped build alternative schools, reinvest Medicaid funds, and even tap into nonprofit grants—all tailored to meet unique community needs. 

🤝 Final Advice: Don’t Go It Alone 

For any district feeling overwhelmed by the complexity of mental health funding, Mark’s advice is simple: Lean into partnerships. 

“You don’t have to do it alone. The most successful districts find partners who understand both the funding and the realities inside their schools.” 

🎧 Listen to the Full Episode 

This episode is a must-listen for school administrators, educators, and advocates who want to take meaningful steps toward transforming mental health support in schools. 

🔗 Listen on Spotify
📌 Follow us for the next installment of our School Funding Series! 

By Tiffanie Ives Coleman 
Director of Client Services, Stepping Stones Mental Health Division