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Home Page Good morning Senators and Members of the Assembly. I’m pleased to have this opportunity to present the Executive Budget for the Office of Mental Health.
New York State leads the nation in providing services for people with psychiatric disabilities. While reducing dependence on institutional care, we have fostered the growth of an increasingly flexible network of recovery-oriented services in the community. We have worked together with local governments and providers to shape a system that is more responsive to the needs of each individual. We have encouraged full, open and meaningful participation by recipients and their families in designing services, planning and formulating policy. In a changing health care environment, we have laid the groundwork for managed care which will enhance access to services while ensuring accountability from the providers of those services.
Governor Pataki’s proposed budget for 1999-2000, which provides for $1.81 billion in total authorized spending, enables us to continue our efforts to improve the quality of life for the individuals we serve. At the same time, it embodies principles of sound fiscal planning, allowing the Office of Mental Health to realize savings which can be used to enhance the services we operate, license and fund. For example, OMH is able to increase its pharmacy budget by $11.6 million. That increase will support the expanded use of new, more effective medications such as clozaril, risperidone and olanzapine.
The needs of mentally ill individuals are no longer limited to hospital-based services. Community services, rehabilitation, employment and support services have, to a large degree, supplanted costly inpatient care for those recovering successfully in the community. The realization that persons with mental illness can and do recover is a basic tenet which underpins New York State’s continued efforts to provide services in the community.
In recognition of the need to support local community development of quality mental health services–including outpatient, community support, self-help and residential beds–the Executive Budget provides an additional $29.4 million in annualized funding through the Community Mental Health Reinvestment Act, which was extended by the Governor in 1998-99, bringing total Reinvestment funding to nearly $194 million. This funding is consistent with formula levels for an anticipated decline of 470 adult non-geriatric beds in State psychiatric centers during the coming fiscal year. Based on that projected decline, OMH will reduce its workforce by 789 positions during 1999-2000, by means of attrition and early retirements.
Included in the workforce actions I just mentioned are 215 shared staffing positions. When New York State moved toward building up community-based services, shared staffing was developed to provide necessary expertise to local communities. Today, OMH licenses more than 2,500 programs statewide. The development of these programs, coupled with the implementation of Reinvestment, have alleviated the need for shared staffing. Additionally, as the State moves toward implementation of Special Needs Programs, we cannot favor one community over another by providing shared staff services. Amendments to the Reinvestment statute will make an additional $6 million in discretionary funding available to respond to locally identified needs by eliminating the requirement that a portion of Reinvestment funds be allocated to the State Operations budget.
Included in the Governor’s Budget is a 2.5% cost-of-living increase enacted by the Legislature last session for certain non-profit programs in the community.
While supporting the growth of community-bases services, OMH recognizes that not all individuals are able to live in the community safely and we continue to support programs which address the needs of these individuals. The safety and security of patients and the public remains a top priority for the Office of Mental Health. Improvements made at State facilities since 1994 have reduced unauthorized absences by 89%. The new budget includes capital funding to rehabilitate space in a secure facility to house and treat patients determined to be sexually violent predators under proposed legislation to be introduced this session.
The Empire State continues its efforts to reduce unemployment and welfare while providing meaningful work opportunities for its citizens. The Office of Mental Health strongly supports this effort. Work brings self-esteem and allows the individual to feel like a member of a community, rather than a dependent. It is no different for an individual experiencing the debilitating effects of mental illness. Developing innovative employment programs and opportunities remains a priority for OMH, and this budget adds 400 supported employment slots, expanding dedicated funding for work programs to nearly $11 million.
In the area of Childrens Services, OMH continues to support innovative approaches such as the Mott Haven Project, a Federal demonstration grant which provides a comprehensive system of care for 300 children and their families in the South Bronx. Upstate, OMH has partnered with the Department of Health and Oneida County to provide a broad array of community-based mental health services to children and families through the Kids Oneida Project. In late 1998 the Health Department filed an application on behalf of OMH to extend our Home and Community-based Services Waiver for another five years. This will allow children who would otherwise need institutional care to stay at home and receive services which they would not have been eligible to receive under Medicaid.
Finally, the Office of Mental Health continues to work with the Department of Health to develop and implement Medicaid Managed Care Special Needs Plans. We will shortly be entering the procurement process for SNPs and we expect the first contracts to be awarded during the coming Fiscal Year.
This budget secures New York’s place in the forefront among all other states in providing necessary services and supports for those who are most vulnerable. I thank you for your attention.