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January 31, 2007


GOVERNOR ELIOT SPITZER RELEASES FIRST EXECUTIVE BUDGET PROPOSAL STRONGLY FOCUSED ON NEEDS OF NEW YORKERS WITH PSYCHIATRIC DISABILTIES: Newly elected NYS Governor Eliot Spitzer released his first executive budget proposal on Wednesday, January 31st, which fulfills many of the promises he made during the campaign and in speeches since to put the needs of everyday New Yorkers, many of whom live with challenges like mental illness, above all else.

Highlights of Governor Spitzer’s 2007-08 budget proposal include new housing beds, a continuation of the Cost of Living Adjustment that began last year, additional Home and Community Based Waiver slots for kids with special needs, expansion of prison-based mental health services, and a commitment to ‘rightsize’ the state psychiatric system to improve services to all New Yorkers.

While there are components of Governor Spitzer’s budget proposal that cause mental health advocates some concern, we are quite optimistic that we will be able to work with the Administration and Legislature to resolve these issues and improve services for people living with psychiatric disabilities.

Following below is a detailed summary of the components of Governor Spitzer’s 2007-08 budget proposal as it relates to New Yorkers living with psychiatric disabilities:

HOUSING

Apparently the rally held by the NYS Campaign for Mental Health Housing last week, at which nearly 1800 people descended on Albany calling for additional investments in housing for people with psychiatric disabilities, was successful. This effort, in conjunction with many other factors, helped make the case for Governor Spitzer to include additional housing for people with psychiatric disabilities in his budget proposal. Governor Spitzer’s budget includes $6 million this year ($12.1 annualized) to create 1000 new supported housing beds. In addition, he also identifies $200 million to be dedicated to the capital costs of creating 1000 new congregate care beds, likely to be Single Room Occupancy (SRO) beds. This is the largest investment in mental health housing in recent memory and mental health advocates are very excited about the possibilities this will provide for people with psychiatric disabilities.

In addition, with $12.9 million in the OMH budget, Governor Spitzer has continued the state’s commitment to the NY/NY III agreement of a few years ago to meet the housing needs of homeless individuals, including those with psychiatric disabilities.

$12.6 million in new funding to provide funding for the first year of a three-year initiative to enhance staffing and respond to inflationary pressures in Community Residences and Family-based Treatment programs.

$6.3 million in new funding to handle increased rent and utility costs in the third year of a three-year increase in stipends for Supported Housing.

Also, OMH provides additional funding to provide supplemental funding for increased property, construction, rehabilitation and facility rehabilitation costs promised for beds currently ‘in the pipeline’ that were promised in previous years.

While we know that the budget includes initiatives to improve the lives of adult home residents, we do not have much information yet. As we get a better idea of the Governor’s proposals in this area, we will share this information.

In documents that support the release of the Governor’s budget, they state, “The lack of decent, safe, affordable, and integrated housing is one of the most significant barriers to full participation in community life for people with mental illness. OMH will need to continue developing integrated and affordable housing opportunities and accompanying support services for individuals with mental illness committed to in previous budget cycles, and initiate new priority housing opportunities as State finances allow.”

We couldn’t agree more.

COMMUNITY SERVICES

As part of last year’s NYS budget, a 3-year 2.5% Cost of Living Adjustment (COLA) was provided to community-based programs throughout the human services sector. This year’s executive budget proposal continues that commitment, providing the second year of that COLA ($30 million). Therefore, if it is approved by the Legislature, direct care staff in mental health programs will receive another 2.5% COLA this year, hopefully helping to address the continued problems with recruiting and retaining qualified staff.

Specifically, language accompanying the budget states that, “Funding and management strategies for voluntary-operated community based service systems needs to balance expansion efforts with ongoing infrastructure needs and address staff recruitment and retention issues and other inflationary pressures. Accordingly, OMH will need to continue working with community-based providers to ensure that all available funding is used in the most efficient and effective manner to meet the needs of consumers and their families, and that stable funding sources are pursued to ensure adequate support for agency operating expenses.”

CHILDREN'S SERVICES

Governor Spitzer’s budget proposal includes an increase in the number of Home and Community Based Waivers slots, a program that has proven extremely successful at meeting the needs of children with psychiatric disabilities. This year’s recommendation is to expand the program by 180 new slots to 1620 at a cost of $1.2 million this year ($4.7 million annualized).

OMH also identifies $.5 million to provide continuity of care to young adults transitioning to the adult service system. We believe this funding is geared toward kids placed out of state transition back into the state, however we will have additional information on this in the coming weeks, especially as this is a priority issue for MHANYS.

In addition, this year’s budget proposal builds upon the historic commitment included in last year’s budget, Achieving the Promise for New York’s Children and Families. This initiative includes a program called Child and Family Clinic Plus intended to provide screening and early detection of mental health needs in children. This year’s budget includes a continuation of the components of the Achieving the Promise initiative, including Child and Family Clinic Plus, tele-psychiatry and early detection.

In addition, as part of the Department of Health component of the budget, eligibility for Child Health Plus will expand from 250 percent to 400 percent of the Federal Poverty Level, allowing an additional 400,000 children presently without any health insurance to join the program.

See also, Research.

PRISON MENTAL HEALTH SERVICES

In the Department of Correctional Services portion of the budget, supporting documentation states, “In concert with the Office of Mental Health, the Department will proceed with targeted investments to expand and enhance services to prisoners with mental illness, featuring the development of a specialized residential mental health program – as an alternative to a Special Housing Unit placement – specifically for those with persistent mental illness.”

While we hope that this will include funding for capital construction of facilities specifically dedicated for prisoners with psychiatric disabilities, MHANYS and other members of the Mental Health Alternatives to Solitary Confinement (MHASC) campaign are very please to see OMH identify an additional $2 million for an expansion of prison mental health services ($9 million annualized).

FACILITY CLOSURES

Though there are no proposed facility closures in the budget. There is language indicating that this is something the administration will be reviewing in the future. To quote from the budget narrative, “Despite significant reductions in inpatient capacity, which allowed for reinvestment of resources into the community, the current institutional service system now being operated by OMH needs to be right-sized, in order to be more cost effective and better meet regional needs.”

MHANYS looks forward to playing an active role in discussions about better utilizing the resources available in the mental health system to the benefit of all New Yorkers with psychiatric disabilities.

MEDICAID

Governor Spitzer’s budget proposal with regard to Medicaid makes sweeping changes to the current Medicaid system in an effort to save nearly $1 billion in Medicaid costs. Initiatives include stepping up efforts to reduce Medicaid fraud and strengthening quality oversight of community providers in collaboration with the Office of the Medicaid Inspector General. There will also be a simplification of the process by which individuals apply for and maintain coverage through Medicaid and Family Health Plus intended to bring more than 900,000 uninsured adults and children into these programs and keep them in. Public outreach campaigns will also be stepped up for these programs. In addition, trend factors in reimbursement rates for hospitals, nursing homes, Child Health Plus, Family Health Plus and managed care plans will be frozen “as part of a strategy for a more rational reimbursement system that more appropriately aligns payment to health care providers with services rendered.”

A series of demonstration projects will be undertaken to better manage the care of nursing home patients, persons with co-occurring disorders, such as mental illness and substance abuse, and other medically complicated cases and high cost users. These projects are intended to avoid the need for costly hospitalizations and institutional care while improving quality of care.

See also, Medications.

MEDICATIONS

Also in the area of Medicaid, the Governor’s budget calls for changes to the Preferred Drug Program, enacted in 2005. Specifically, anti-depressants will no longer be exempted from the Preferred Drug Program under the Governor’s proposal – atypical anti-psychotics will remain exempt along with HIV/AIDS and anti-rejection medications. In addition, the Governor’s proposal calls for using cost as a criterion in the drug review process under the Preferred Drug Program. Also, there is mention of amending the time frames for public notice for the Preferred Drug Program - details are yet to come. Physicians will retain the ability to have the final determination as to which medication a patient is prescribed. MHANYS has traditionally opposed efforts to roll back any of the safeguards, like those mentioned above, that were included in the original Preferred Drug Program agreement in 2005. We believe that these actions, while intended to simply save money, would likely reduce access to medications that help people with psychiatric needs remain healthy and stable, instead causing them to rely on more intensive and expensive forms of care when access is denied.

Citing the fact that 75% of the Medicaid program’s resources are spent on 20% of the enrollees – primarily elderly and disabled individuals - the budget proposal also calls for improving the care coordination for medically complicated and high cost individuals. For people with psychiatric disabilities, this will likely include building on the existing Psychiatric & Clinical Knowledge Enhancement System (PSYCKES) program currently run by OMH, which has proven quite successful at providing better coordinated care and reducing costs ($4.3 million).

Lastly, while it is not a continuation of the Medicaid wrap-around benefit provided to all dual eligible individuals throughout much of last year, a wrap-around benefit will continue for dual eligible individuals needing mental health (likely anti-depressants and atypical anti-psychotics), HIV/AIDS and organ transplant drugs to ensure access to those unable to get their medications through their Medicare Part D plan.

SEXUAL OFFENDERS

Governor Spitzer’s budget proposal also calls for an additional $19.2 million ($46 million annualized) to continue the efforts begun under the Pataki Administration to house sexual offenders in the state’s inpatient mental health system. This funding will go to hire 335 full time employees this year, totaling 782 when the funding is fully annualized.

MHANYS and other mental health advocates have joined with experts in sexual offender management to, instead, call for the establishment of a comprehensive approach to sexual offender management that includes education, prevention, treatment, monitoring and supervision – all of the aspects that comprise an effective sexual offense reduction strategy.

GERIATRIC MENTAL HEALTH ACT

Funding for the Geriatric Mental Health Act, enacted into law in 2005, continues at $2 million – no additional funds were added.

SUICIDE PREVENTION

Funding for Suicide Prevention programs, including support for the ongoing State Suicide Prevention Plan, continues at $1.5 million – no additional funds were added.

RESEARCH

An additional $1.5 million was proposed to improve the capacity of OMH research facilities at Nathan Kline Institute and Psychiatric Institute to enhance children’s mental health treatment and support services.

TIMOTHY'S LAW

"The Executive Budget also includes a $100 million General Fund appropriation for the Department to finance provisions of "Timothy's Law" which was enacted in late 2006. Under this statute's provisions, on or after January 1, 2007, the State is required to fully reimburse employers with 50 or fewer employees for the costs associated with providing broad-based mental health insurance coverage."

ADDITIONAL ITEMS

$.4 million in new funding to replace Federal funding to continue Project Caring, to bridge corrections and community-based services for women with mental illness.

$.6 million in new funding to add supported employment slots for people with psychiatric disabilities.

$.9 million in new funding to cover costs above the Medicaid funding for Comprehensive Psychiatric Emergency Programs (CPEP).

$1.2 million ($1.9 annualized) in new funding to support trend factor increases for Residential Treatment Facilities.

$.3 million in new funding for school mental health services.

Continued funding to maintain current bed levels within OMH facilities for adults (4030), children (526) and forensic programs (695).

Continued funding of $326.6 million to support state facility building preservation, design and construction, health and safety, accreditation, energy conservation and environmental protection.