2001 Yellow Book
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OFFICE OF MENTAL HEALTH

                                      Adjusted         Executive                       
                                 Appropriation           Request                       Percent 
                                       2000-01           2001-02            Change      Change 

AGENCY SUMMARY
  Community Projects Fund            2,477,650                 0        (2,477,650)   -100.00%
  General Fund                   1,315,585,000     1,464,522,000       148,937,000      11.32%
  Special Rev.-Fed.                 28,055,000        32,931,000         4,876,000      17.38%
  Special Rev.-Other               559,314,000       479,307,000       (80,007,000)    -14.30%
  Fiduciary                            570,000           570,000                 0       0.00%
  Enterprise                         7,842,000         8,015,000           173,000       2.21%
  Internal Service Fund              2,051,000         2,234,000           183,000       8.92%
  Capital Projects Fund             43,988,000        37,719,000        (6,269,000)    -14.25%
  Mental Hygiene Capital     
    Improvement Fund-389            90,132,000       137,016,000        46,884,000      52.02%
  Total for AGENCY SUMMARY:      2,050,014,650     2,162,314,000       112,299,350       5.48%


STATE OPERATIONS
  General Fund                     611,749,000       731,413,000       119,664,000      19.56%
  Special Rev.-Fed.                    929,000         1,258,000           329,000      35.41%
  Special Rev.-Other               516,239,000       404,772,000      (111,467,000)    -21.59%
  Fiduciary                            570,000           570,000                 0       0.00%
  Enterprise                         7,842,000         8,015,000           173,000       2.21%
  Internal Service Fund              2,051,000         2,234,000           183,000       8.92%
  Total for STATE OPERATIONS:    1,139,380,000     1,148,262,000         8,882,000       0.78%

Administration and Finance
  General Fund                      57,460,000        57,213,000          (247,000)     -0.43%
  Special Rev.-Fed.                    929,000         1,258,000           329,000      35.41%
  Special Rev.-Other                         0         1,300,000         1,300,000        --  
  Fiduciary                            570,000           570,000                 0       0.00%
  Enterprise                         7,842,000         8,015,000           173,000       2.21%
  Internal Service Fund              2,051,000         2,234,000           183,000       8.92%
  Total for Program:                68,852,000        70,590,000         1,738,000       2.52%

Adult Services
  General Fund                     788,013,000       785,998,000        (2,015,000)     -0.26%
  Total for Program:               788,013,000       785,998,000        (2,015,000)     -0.26%

Children and Youth Services
  General Fund                     115,353,000       115,645,000           292,000       0.25%
  Total for Program:               115,353,000       115,645,000           292,000       0.25%

Forensic Services
  General Fund                     105,163,000       109,846,000         4,683,000       4.45%
  Total for Program:               105,163,000       109,846,000         4,683,000       4.45%

Research
  General Fund                      40,300,000        40,811,000           511,000       1.27%
  Special Rev.-Other                 5,751,000         5,772,000            21,000       0.37%
  Total for Program:                46,051,000        46,583,000           532,000       1.16%

Maintenance Undistributed
  General Fund                    (510,488,000)     (397,700,000)      112,788,000     -22.09%
  Special Rev.-Other               510,488,000       397,700,000      (112,788,000)    -22.09%
  Total for Program:                         0                 0                 0        --  

Enhanced Community Services
  General Fund                      15,948,000        19,600,000         3,652,000      22.90%
  Total for Program:                15,948,000        19,600,000         3,652,000      22.90%

AID TO LOCALITIES
  Community Projects Fund            2,477,650                 0        (2,477,650)   -100.00%
  General Fund                     703,836,000       733,109,000        29,273,000       4.16%
  Special Rev.-Fed.                 27,126,000        31,673,000         4,547,000      16.76%
  Special Rev.-Other                43,075,000        74,535,000        31,460,000      73.04%
  Total for AID TO LOCALITIES:     776,514,650       839,317,000        62,802,350       8.09%

Adult Services
  General Fund                     444,014,000       447,029,000         3,015,000       0.68%
  Special Rev.-Fed.                 21,617,000        24,695,000         3,078,000      14.24%
  Special Rev.-Other                 2,475,000         7,735,000         5,260,000     212.53%
  Total for Program:               468,106,000       479,459,000        11,353,000       2.43%

Children and Youth Services
  General Fund                      92,400,000        96,090,000         3,690,000       3.99%
  Special Rev.-Fed.                  5,509,000         6,978,000         1,469,000      26.67%
  Total for Program:                97,909,000       103,068,000         5,159,000       5.27%

Community projects
  Community Projects Fund            2,477,650                 0        (2,477,650)   -100.00%
  Total for Program:                 2,477,650                 0        (2,477,650)   -100.00%

Maintenance Undistributed
  General Fund                     (40,600,000)      (66,800,000)      (26,200,000)     64.53%
  Special Rev.-Other                40,600,000        66,800,000        26,200,000      64.53%
  Total for Program:                         0                 0                 0        --  

Community Mental Health Reinvestment
  General Fund                     167,422,000       189,990,000        22,568,000      13.48%
  Total for Program:               167,422,000       189,990,000        22,568,000      13.48%

Enhanced Community Services
  General Fund                      40,600,000        66,800,000        26,200,000      64.53%
  Total for Program:                40,600,000        66,800,000        26,200,000      64.53%

CAPITAL PROJECTS
  Capital Projects Fund             43,988,000        37,719,000        (6,269,000)    -14.25%
  Mental Hygiene Capital     
    Improvement Fund-389            90,132,000       137,016,000        46,884,000      52.02%
  Total for CAPITAL PROJECTS:      134,120,000       174,735,000        40,615,000      30.28%


Design and Construction Supervision
  Capital Projects Fund              1,750,000         1,750,000                 0       0.00%
  Mental Hygiene Capital     
    Improvement Fund-389             9,000,000         7,500,000        (1,500,000)    -16.67%
  Total for Program:                10,750,000         9,250,000        (1,500,000)    -13.95%

Executive Direction
  Mental Hygiene Capital     
    Improvement Fund-389             3,300,000         3,300,000                 0       0.00%
  Total for Program:                 3,300,000         3,300,000                 0       0.00%

Community Mental Health Facilities
  Capital Projects Fund              5,000,000         5,000,000                 0       0.00%
  Mental Hygiene Capital     
    Improvement Fund-389             5,412,000         5,424,000            12,000       0.22%
  Total for Program:                10,412,000        10,424,000            12,000       0.12%

Non-Bondable Projects
  Capital Projects Fund             11,000,000        3,000,000         (8,000,000)    -72.73%
  Total for Program:                11,000,000        3,000,000         (8,000,000)    -72.73%

Maintenance and Improvements of Existing Facilities
  Capital Projects Fund             26,238,000       27,969,000          1,731,000       6.60%
  Mental Hygiene Capital     
    Improvement Fund-389            72,420,000      120,792,000         48,372,000      66.79%
  Total for Program:                98,658,000      148,761,000         50,103,000      50.78%


                             ALL FUNDS PERSONNEL
                            BUDGETED FILL LEVELS

                            Current  Requested
Program                     2000-01    2001-02    Change

Capital Planning                 41         41        0
Administration and Finance      644        634      (10)
Adult Services               13,159     12,813     (346)
Children and Youth Services   1,955      1,953       (2)
Forensic Services             1,878      1,881        3
Research                        524        524        0
Maintenance Undistributed       338        397       59

Total General Fund:          18,078     17,723     (355)
Total All Other Funds:          461        520       59

TOTAL:                       18,539     18,243     (296)



                               BUDGET HIGHLIGHTS
                        (Executive Budget: pp.163-171)

The Office of Mental Health administers an extensive statewide mental health 
network, including community based mental health services, 17 State-operated 
psychiatric centers for adults, six State-operated psychiatric centers for 
children, three forensic psychiatric centers and two research institutes.  The 
State-operated inpatient mental health system serves 9,700 adults and children 
annually.  Outpatient services are provided to an additional 37,000 patients 
each year.  In addition to serving outpatients, OMH provides other community-
based services, including sheltered employment and residential opportunities.  
There are more then 2,500 not-for-profit and proprietary mental health service 
providers in the community meeting the needs of over 500,000 persons.  All 
community based providers are licensed by OMH. The agency is included in the 
Health, Mental Hygiene and Environmental Conservation appropriation bill.

The Executive proposes that the moratorium on bed closures implemented on April 
1, 2000 will be lifted on April 1, 2001. New bed closures will go forward 
although excess capacity of fifty beds will be maintained to allow prompt
response to future emergencies.  The Executive also proposes enacting a 
new Community Mental Health Support and Workforce Reinvestment Act to redirect 
savings from census reduction, facility consolidations and closures to 
community based providers. As part of the Executive's proposal, total 725 bed 
census reduction would take place over three years, both the Hutchings and 
Middletown adult psychiatric centers would be closed; the Queens, Rockland, 
Sagamore and Western New York children's psychiatric centers would be relocated 
to sites on adult psychiatric center campuses, and the Kirby Forensic 
Psychiatric Center would be relocated to empty space in the Manhattan 
Psychiatric Center.  The savings derived from these actions, as estimated by the 
Executive, would provide sufficient revenue to support a  10 percent increase to 
the fixed Medicaid fees paid for community-based mental health outpatient 
services, thus creating a permanent increase to the base payment in year one of 
the program.  In addition, these savings would provide for an annual cost of 
living adjustment of up to 2.5 percent through SFY 2003-04 for certain community 
mental health service providers licensed under Article 41 or Article 43 of the 
Mental Hygiene Law through State Fiscal Year (SFY) 2003-04.

State Operations

The Executive recommends a net All Funds increase in appropriations of 
$8,882,000 of 0.78 percent for a total of $1,148,262,000. Within State 
Operations, Special Revenue Fund-Other Patient Income Account support from 
patient care revenues decreases by $116,440,000.  As these patient care
revenues decrease, either service levels are decreased or
 General Fund dollars must increase to offset losses.

The Executive's State Operations funding proposals include the following:

  --   A net increase of $1,738,000 or 2.52 percent in the Administration and 
       Finance that reflects a General Fund decrease of $247,000 resulting from 
       various personal service and nonpersonal service actions;

  --   A net General Fund decrease of $2,015,000 in the Adult Services Program 
       resulting from savings from census decline, staffing efficiencies, 
       automation of the medical records system, decreasing use of overtime and 
       the transfer of shared staffing costs to Aid to Localities.  Savings are 
       partially offset by increased contractual salary costs and nonpersonal 
       service expenses including increased energy costs.

  --   A net General Fund increase of $292,000 or 0.25 percent in the Children 
       and Youth Services Program resulting from negotiated salary increases 
       offset by savings from energy efficiencies and the administrative
  
     consolidation of the Bronx Psychiatric Center with the Bronx Children's 
       Psychiatric Center.

  --   A General Fund increase of $3,652,000 or 22.9 percent in the Enhanced 
       Community Services Program to bring the program to its full annual 
       funding level of $19,600,000.

  --   A General fund increase of $4,683,000 or 4.45 percent in the Forensic 
       Services Program resulting from negotiated salary increases, nonpersonal 
       service adjustments, an increase of three full time equivalent
  
     administrative positions and the full annual impact of staffing increases 
       made in SFY 2000-01.

  --   An increase of $523,000 or 1.16 percent in the Research Program 
       reflecting negotiated salary increases and nonpersonal service 
       inflationary increases partially offset by the full annual impact of 
       personnel reductions
 in SFY 2000-01.

Aid to Localities

The Executive recommends a net All Funds increase to Aid to Localities of 
$62,802,350 or 8.09 percent for a total of $839,317,000.  This funding level
is due primarily to the following actions:
  --   The Executive recommends a net increase in the Adult Services Program of 
       $11,353,000 or 2.43 percent reflecting the transfer of Shared Staffing 
       funds from State Operations to Aid to Localities and increased
       appropriations for supported housing, offset by annualization of savings 
       from Medicaid maximization and
 various technical adjustments.  

  --   The Executive recommends a net increase in the Children and Youth 
       Services Program of $5,159,000 or 5.27 percent resulting from increases
       in funding for children's community residences and family based 
       treatment, and a trend adjustment for Residential Treatment Facilities 
       offset by annualization of savings from Medicaid maximization.

  --   The Executive recommends an increase of $26,200,000 or 64.53 percent for 
       the Enhanced Community Services Program reflecting full annualization of 
       appropriations for case management services, supported  housing, 
       children's services including case management, Home and Community Based 
       Services Waiver, family
 based treatment and family support services.

  --   The Executive recommends an increase of $22,568,000 or 13.48 percent for 
       the Community Mental Health Reinvestment Program.  Of this amount, 
       $14,900,000 would fund the new Community Mental Health Support
       and Workforce Reinvestment Act (described below).  The remaining 
       $7,668,000 would provide eighth year funding for the current Community
       Mental Health Reinvestment Program as well as annualized funding for
       SFY 2000-01 actions and new funding derived from anticipated census 
       declines in SFY 2001-02.

Shared Staffing


The Shared Staffing Program was created prior to the enactment in 1993 of the 
Community Mental Health Reinvestment Act.  The original program goal was to 
provide relief to local governments faced with the responsibility for the costs 
of providing services to a newly deinstitutionalized mentally ill population.  
Under the Program, mental health staff are paid through State psychiatric 
centers, but work in county and not-for-profit operated agencies.  OMH proposes 
transitioning the funding stream which supports these employees from State 
Operations to Aid to Localities over a three year period. In SFY 2001-02, 
$12,271,000 in General Fund appropriations would be transferred from State 
Operations to Aid to  Localities for this purpose.  State employees would be 
offered the option of transferring to county employment or rejoining the staff 
of a psychiatric center.

The Community Mental Health Support and Workforce Reinvestment Act

The Executive proposes a new Community Mental Health Support and Workforce 
Reinvestment Act to be funded with savings derived from facility closures, 
consolidations and downsizing.  The following actions are expected to generate
$64,100,000 in savings by SFY 2004-05:

  --   Eliminating 725 adult and geriatric beds from the State operated system 
       over three years starting with SFY 2001-02. In each of the first two 
       years, 240 beds would be taken out of the system and in the last year
       245 beds would be discontinued.  The per bed savings associated with 
       downsizing would be $65,500 in the first year with a $1,000 increment
       added in each of the following two years.

  --   Relocating four children's psychiatric centers (CPC) to the grounds of 
       adult psychiatric centers (PCs).  The Queens CPC would relocate to the 
       Creedmoor PC campus, The Rockland CPC would relocate to the campus
       of the Rockland PC, the Sagamore CPC would relocate to the campus of the
       Pilgrim PC, and the Western New York CPC would relocate to the campus of 
       the Buffalo PC.

  --   Closing both the Hutchings and the Middletown Psychiatric Centers.

  --   Relocating the Kirby PC, a forensic facility, into unused space in the 
       Manhattan PC.

In a related action, the Executive proposes to add up to 144 new State-operated 
beds, 104 adult transitional and 40 crisis residence beds for children and 
adolescents to be located on the grounds of State-operated psychiatric centers.  
This proposal does not rely on revenues generated from bed eliminations and 
facility closures.

Capital Projects

The Executive recommends $174,735,000 to fund capital construction projects in
SFY 2001-02.  The Governor's proposal allocates $10,424,000 for community 
projects and the remaining $164,311,000 for projects within the State operated
system.  The recommendation includes $120,792,000 in bonded appropriations.

Article VII

The Executive proposes Article VII legislation which would create the Community 
Mental Health Support and Workforce
 Reinvestment Act.


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