2002 Yellow Book
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OFFICE OF MENTAL HEALTH
 


                                  Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change


AGENCY SUMMARY
  General Fund               1,424,797,000 1,362,422,000  (62,375,000)  -4.38%
  Special Rev.-Fed.             32,931,000    39,493,000    6,562,000   19.93%
  Special Rev.-Other           453,107,000   559,982,000  106,875,000   23.59%
  Fiduciary                        570,000       570,000            0    0.00%
  Enterprise                     8,015,000     8,277,000      262,000    3.27%
  Internal Service Fund          2,234,000     2,292,000       58,000    2.60%
  Capital Projects Fund         37,719,000    37,700,000      (19,000)  -0.05%
  Mental Hygiene Capital     
    Improvement Fund-389        90,132,000   125,180,000   35,048,000   38.89%
  Total for AGENCY SUMMARY:  2,049,505,000 2,135,916,000   86,411,000    4.22%


STATE OPERATIONS
  General Fund                 728,467,000   665,527,000  (62,940,000)  -8.64%
  Special Rev.-Fed.              1,258,000     1,258,000            0    0.00%
  Special Rev.-Other           404,772,000   485,447,000   80,675,000   19.93%
  Fiduciary                        570,000       570,000            0    0.00%
  Enterprise                     8,015,000     8,277,000      262,000    3.27%
  Internal Service Fund          2,234,000     2,292,000       58,000    2.60%
  Total for STATE OPERATIONS:1,145,316,000 1,163,371,000   18,055,000    1.58%

Administration and Finance
  General Fund                  57,213,000    57,061,000     (152,000)  -0.27%
  Special Rev.-Fed.              1,258,000     1,258,000            0    0.00%
  Special Rev.-Other             1,300,000     1,300,000            0    0.00%
  Fiduciary                        570,000       570,000            0    0.00%
  Enterprise                     8,015,000     8,277,000      262,000    3.27%
  Internal Service Fund          2,234,000     2,292,000       58,000    2.60%
  Total for Program:            70,590,000    70,758,000      168,000    0.24%

Adult Services
  General Fund                 785,497,000   793,536,000    8,039,000    1.02%
  Total for Program:           785,497,000   793,536,000    8,039,000    1.02%

Children and Youth Services
  General Fund                 115,645,000   118,690,000    3,045,000    2.63%
  Total for Program:           115,645,000   118,690,000    3,045,000    2.63%

Forensic Services
  General Fund                 107,401,000   113,082,000    5,681,000    5.29%
  Total for Program:           107,401,000   113,082,000    5,681,000    5.29%

Research
  General Fund                  40,811,000    41,686,000      875,000    2.14%
  Special Rev.-Other             5,772,000     6,019,000      247,000    4.28%
  Total for Program:            46,583,000    47,705,000    1,122,000    2.41%

Maintenance Undistributed
  General Fund               (397,700,000) (478,128,000)  (80,428,000)  20.22%
  Special Rev.-Other           397,700,000   478,128,000   80,428,000   20.22%
  Total for Program:                     0             0            0     --  

Enhanced Community Services
  General Fund                  19,600,000    19,600,000            0    0.00%
  Total for Program:            19,600,000    19,600,000            0    0.00%

AID TO LOCALITIES
  General Fund                 696,330,000   696,895,000      565,000    0.08%
  Special Rev.-Fed.             31,673,000    38,235,000    6,562,000   20.72%
  Special Rev.-Other            48,335,000    74,535,000   26,200,000   54.21%
  Total for AID TO LOCALITIES: 776,338,000   809,665,000   33,327,000    4.29%

Adult Services
  General Fund                 425,758,000   423,126,000   (2,632,000)  -0.62%
  Special Rev.-Fed.             24,695,000    30,400,000    5,705,000   23.10%
  Special Rev.-Other             7,735,000     7,735,000            0    0.00%
  Total for Program:           458,188,000   461,261,000    3,073,000    0.67%

Children and Youth Services
  General Fund                  96,090,000    96,494,000      404,000    0.42%
  Special Rev.-Fed.              6,978,000     7,835,000      857,000   12.28%
  Total for Program:           103,068,000   104,329,000    1,261,000    1.22%

Community Mental Health Reinvestment
  General Fund                 174,482,000   177,275,000    2,793,000    1.60%
  Total for Program:           174,482,000   177,275,000    2,793,000    1.60%

Enhanced Community Services
  Special Rev.-Other            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         37,719,000    37,700,000      (19,000)  -0.05%
  Mental Hygiene Capital     
    Improvement Fund-389        90,132,000   125,180,000   35,048,000   38.89%
  Total for CAPITAL PROJECTS:  127,851,000   162,880,000   35,029,000   27.40%

Design and Construction Supervision
  Capital Projects Fund          1,750,000     1,750,000            0    0.00%
  Mental Hygiene Capital     
    Improvement Fund-389         7,500,000     8,000,000      500,000    6.67%
  Total for Program:             9,250,000     9,750,000      500,000    5.41%

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     6,000,000    1,000,000   20.00%
  Mental Hygiene Capital     
    Improvement Fund-389         5,424,000     5,470,000       46,000    0.85%
  Total for Program:            10,424,000    11,470,000    1,046,000   10.03%

Non-Bondable Projects
  Capital Projects Fund          3,000,000     2,000,000   (1,000,000) -33.33%
  Total for Program:             3,000,000     2,000,000   (1,000,000) -33.33%

Maintenance and Improvements of Existing Facilities
  Capital Projects Fund         27,969,000    27,950,000      (19,000)  -0.07%
  Mental Hygiene Capital     
    Improvement Fund-389        73,908,000   108,410,000   34,502,000   46.68%
  Total for Program:           101,877,000   136,360,000   34,483,000   33.85%



                                                                    
                                                                    
      

                         ALL FUNDS PERSONNEL
                        BUDGETED FILL LEVELS
                                                                    
                                                                    
      
                                   Current     Requested
Program                            2001-02       2002-03   Change
                                                                    
                                                                    
      
Capital Planning                        41            41        0
Administration and Finance             617           617        0
Adult Services                      12,571        12,160    (411)
Children and Youth Services          1,964         1,964        0
Forensic Services                    1,878         1,878        0
Research                               524           524        0
Maintenance Undistributed              397           397        0

Total General Fund :                17,469        17,058    (411)
Total All Other Funds :                523           523        0

TOTAL:                              17,992        17,581    (411)
                                                                    
                                                                    
       


                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 145-151)

The Office of Mental Health (OMH) 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 approximately 7,600 persons 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 than 2,500 not-for-profit,
municipal and proprietary mental health service providers in the
community, meeting the needs of over 500,000 persons annually.  All
community-based providers are licensed by OMH.  

The Executive proposes continued funding for a number of community-
based program initiatives. The Assisted Outpatient Treatment Program
(Kendra's Law) provides intensive services to persons who are
seriously mentally ill and who might constitute a danger to themselves
or others if they were not treated, but who are able to live in the
community if they follow their treatment plans. The Medication Grants
Program screens persons being released from hospitals, jails or
prisons to determine their need for community mental health services. 
Persons in need of mental health services are referred to community-
based providers and are enrolled in a program to provide psychotropic
medication while their eligibility for Medicaid coverage is
determined. The Enhanced Community Services Program uses revenues from
the Health Care Reform Act (HCRA 2000) to support 500 new residential
placements and additional case management services for adults as well
as a number of community-based services for children. The New York/New
York II Program will add 150 supportive housing units in the
community.  In addition, State Fiscal Year (SFY) 2002-03 will see the
opening of 150 Community Mental Health Reinvestment funded beds. An
additional 1,900 beds are in the "pipeline" at various stages of
development.  The Executive proposal does not include an appropriation
for new bed development.

The Executive's proposal includes plans to go forward with year two
of a three-year plan to downsize the State-operated system. During SFY
2002-03, 395 beds would be eliminated, resulting in $18,280,000 in
General Fund savings, in addition to $6,550,000 in savings derived
from bed closures in SFY 2001-02. Although the landmark Community
Mental Health Reinvestment Act expired on September 30, 2001, the
Executive offers no proposal to extend or to replace this law. 
Without the needed statutory authority directing savings from bed
closures to community-based services, any savings derived from bed
closings since the expiration date of the statute inure to the General
Fund.  The Executive's lack of initiative comes despite past
recognition of the desperate need of the non-for-profit community and
municipal mental health providers for an increase in base funding in
order to address a growing workforce crisis.    

The Executive proposes to move forward with planned capital projects
at adult and children's psychiatric centers that had been recommended
for closure or co-location with other facilities in SFY 2001-02. 
Various projects will be undertaken at the Hutchings and Middletown
Psychiatric Centers, as well as at the Queens, Rockland, Sagamore and
Western New York Children's Psychiatric Centers.  

In SFY 2001-02, the Executive proposed Article VII legislation to
shift to county control $12,271,000 in State Operations funding which
supported 215 shared staff positions.  The proposal was not enacted
into law.  In SFY 2002-03, the Executive retains funding for shared
staff positions in the State Operations budget, but limits funding to
the 155 filled positions and takes savings for the vacant positions.

The Agency is included in the Health, Mental Hygiene and Environmental
Conservation appropriation bill.

State Operations

The Executive recommends a net All Funds appropriation of
$1,163,371,000, an increase of 1.6 percent. Within State Operations,
Special Revenue Fund Other support increases by $80,675,000, primarily
due to a $80,400,000 increase to the Patient Income Account (PIA). 
Growth in the PIA is essentially due to a substantial increase in
Federal disproportionate share payments to OMH for care provided in
State psychiatric centers and to increased Medicaid revenues derived
from OMH's Prepaid Health Plan.  As patient care revenues increase,
less General Fund support is required for State-provided mental health
services. 

The Executive recommends a net decrease in General Fund support of
$62,940,000 which results from the following actions:

--     A $59,203,000 General Fund increase from: negotiated salary
       increases totaling $38,924,000; an increase of $14,284,000 from
       the restoration of 42 FTE positions in the Forensic Program and
       increases in nonpersonal service related to energy and
       pharmaceutical costs; and $5,995,000 for nonpersonal service
       inflation adjustments. 

--     Decreases totaling $122,143,000 from: savings of $80,428,000
       derived from increased patient care revenues; $18,280,000 in
       savings from the closure of 395 beds; $8,195,000 in savings
       from a freeze on filling vacant positions; $6,550,000 in
       savings as bed closures from SFY 2001-02 are annualized;
       $4,805,000 in nonpersonal Service reductions; $1,800,000 in
       savings from elimination of 30 unfilled shared staff positions;
       $1,230,000 in savings from elimination of 20 vacant positions
       in Administration and Finance; and $855,000 in miscellaneous
       savings.

Aid to Localities

The Executive recommends a net All Funds appropriation of
$809,665,000, an increase of $33,327,000, or 4.3 percent. The funding
increase results from the following recommended changes:

--     A net increase of $565,000 in General Fund support representing
       $6,384,000 for increases for the Medication Grants Program,
       Supportive Employment, Residential Treatment Facilities, and
       Mental Health Reinvestment, which is offset by $5,819,000 in
       decreases from Medicaid maximization and increased Federal
       support;

--     An increase of $26,200,000 for the Enhanced Community Services
       Program, funded from HCRA 2000; and 

--     A $6,562,000 increase in Federal support, primarily for housing
       grants.

Capital Projects

The Executive proposes a net All Funds appropriation of $162,880,000,
an increase of $35,029,000, or 27.4 percent. The increase is due
primarily to resumption of plans for repair and renovation at adult
and children's psychiatric centers that had been targeted for closure
or co-location to other campuses in the SFY 2001-02 capital plan.

Article VII Proposals

The Executive proposes Article VII legislation which would eliminate
the Youth Opportunity Program that provides part-time employment in
voluntary operated agencies for disadvantaged young persons who are
in danger of dropping out of school. The Program is funded and
administered by the Office of Mental Retardation and Developmental
Disabilities, but OMH - licensed agencies also participate and would
be affected by elimination of the Program.

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