Office of Alcoholism and Substance Abuse Services

The enacted budget makes the following changes to the Executive Budget (analysis as of March 28, 2012):

·        The enacted budget makes no changes to the Executive Budget All Funds, state operations, appropriation proposal of $116.95 million.

·        Rejects the broad Executive Budget proposal to allow the Executive to have unlimited transfer and interchange authority over all State Operations appropriations. Instead it creates four specific transfer and interchange authorization for State Operation appropriations: OGS/Back Office, Call Center, Information Technology and Alignment/ Oversight of the care of vulnerable persons. In general this authorization allows the Executive to move appropriations between state agencies for these purposes. For additional detail please see page 5 of the Summary of the SFY 2012-13 Enacted Budget memo.

·        OASAS has particular interchange authorization for:

o   Alignment Interchange and Transfer Authority which will allow the interchange, transfer, or sub-allocation of any State Operations appropriation for Office of Mental Health, the Office for People with Developmental Disabilities, the Office of Alcoholism and Substance Abuse Services, the Department of Health, and the Office of Children and Family Services, for the purpose of planning, developing and/or implementing the alignment of (i) conducting criminal background checks, (ii) workforce training, (iii) the coordination of reports, complaints and other relevant information regarding charges of abuse and neglect committed against individuals in the care and charge of such agencies as otherwise authorized by law, (iv) audit of services and (v) certification.

·        Rejects the proposal to cap reimbursement and executive compensation.  However, the Governor has already issued a similar Executive Order (S6256D/A9056D, Part H). 

·        Approves the Executive Budget proposal that allows OMH, OPWDD DOH and OASAS to establish joint operating, reporting and construction requirements, although it does not merge these agencies (S6256D/A9056D Part L). 

·        Approves the creation of a combined comprehensive planning process for OMH, OPWDD and OASAS and the creation of a Behavioral Health Advisory Council for OMH and OASAS to replace and assume the responsibilities of the existing advisory bodies.  (S6256D/A9056D, Part N)

The Assembly Budget recommends the following changes to the Executive Budget (analysis as of March 14, 2012):

·        Makes no changes to the Executive Budget, State Operations, All Funds, appropriation proposal. 

·        Modifies the Executive’s Article VII proposal to cap reimbursement and executive compensation for entities that receive state funds to add due process provisions (a hearing if a provider’s failure to comply results in the state agency terminating or not renewing a contract) (A.9056C, Part H). 

·        Approves the Executive Budget proposal that allows OMH, OPWDD DOH and OASAS to establish joint operating, reporting and construction requirements, although it does not merge these agencies (A.9056C, Part L)

·        The Assembly modifies the Executive proposal to create an integrated Behavioral Health Services Advisory Council to require an annual report to the Legislature (A.9056C, Part N).

The Senate Budget recommends the following changes to the Executive Budget (analysis as of March 14, 2012:

·        Reduces the personal service appropriations in the Office by a little over $27 million and cut most personal service appropriations for the agency in half.  We are concerned about the Senate’s proposed personal service cuts in the office of Alcoholism and Substance Abuse Services and we are taking appropriate action during the conference committee process.  The reductions included:

o   $12.1 million cut in personal services from the Executive Direction Program, Mental Hygiene Program Fund SRO account to be used for services and expenses related to the credentialing of prevention, alcohol, and substance abuse, and problem gambling counselors; and expenses related to the operation of methadone services and a patient registry for the prevention of simultaneous enrollment in multiple methadone treatment programs.

o   $14.98 million cut in personal services from the Institutional Services Program.  This reduction includes a $2.88 million cut from the Mental Hygiene Patient Income SRO account; and $12.10 million cut from the Mental Hygiene Program Fund SRO account.        

·        Rejects the Executive’s proposal to limit state payments for executive compensation exceeding $199,000 and that at least 75% of state payments be used for direct patient care services rather than administrative and compensation expenses. Instead, the Senate adds a new proposal requiring that certain not-for-profit organizations that are eligible for the human services cost of living adjustment, adhere to the federal government’s Rates of Basic Pay for the Executive Schedule promulgated by the Unites States Office of Personnel Management for setting executive compensation.  These providers of services will be required to annually submit an Internal Revenue Service Form 990, or a comparable form jointly developed by the Commissioners of the OPWDD; OMH; OASAS; OCFS; DOH; and SOFA.  If enacted, this proposal would expire March 31, 2014. The Senate also includes provisions requiring that three separate studies and reports be submitted to address executive compensation and administrative cost issues. The Senate proposal also prohibits the development of any rule or regulation to address executive compensation or administrative cost issues absent explicit legislative language.  (S.6256C, Part H)

·        Approves the Executive Budget proposal that allows OMH, OPWDD DOH and OASAS to establish joint operating, reporting and construction requirements, although it does not merge these agencies.  The Senate makes minor modifications to the Executive’s proposal (S.6256, Part L).

·        Modifies the Executive’s Article VII recommendation to replace the Mental Health Services Council and the Advisory Council on Alcoholism and Substance Abuse Services with a new Behavioral Health Services Council (S.6256, Part N).

The Executive Budget recommends (analysis as of January 20, 2012):

A SFY 2012-13 workforce of 813.  However the adjusted FTE level for 2011-12 is an increase of 5 FTEs from the level projected in last year’s budget.  The estimated workforce level for SFY 2012-13 is the result of the attrition of 39 FTEs, offset by 30 new fills.

The following chart identifies adjustments in the current fiscal year FTEs along with the recommended differences in FY 2012-13 FTEs by program:

·  Establishes a centralized 24-hour hotline housed in OCFS for abuse and neglect for certain programs operated, licensed or certified by OMH, OPWDD, OASAS, OCFS, DOH and SED; integrates health and behavioral health services across agencies (see below); and creates a behavioral health advisory council (see below for more details). 

·  An All Funds appropriation of $116.95 million, a $2 million decrease (-1.7%) from the SFY 2011-12 appropriation level.

·  The State Operations reduction is achieved through the implementation of enterprise-wide efforts to reduce purchasing costs, streamline IT applications, and reduce agency administrative staffing levels.  According to the Executive Budget Briefing Book, this budget also includes funding to support 25 new veteran’s beds and 12 new residential treatment opportunities for women with children.  It is unclear whether these funds are an aid to localities or state operations appropriation.

·  The total appropriation for Personal Service is $60.7 million, a decrease of $868,800 (-1.4%) from SFY 2011-12.

·  The Office employed an estimated 40 employees under consultant contracts in SFY 2011-12 (or approximately 24.6 FTEs) at a cost of $3.2 million.  It is estimated that 36 (or approximately 23.9 FTEs) consultant employees will be employed in SFY 2012-13, at a cost of $3.37 million.  The expenditures may include more than personal service costs and is inconsistent with Office of State Comptroller data on consultant spending so it is difficult to draw conclusions as to the cost per consultant employee.

·  Major Article VII proposals:

o   Cap Executive Compensation.  Sets caps for administration and reimbursement for executive compensation for the following agencies that operate, license, certify, or fund providers of services:  OPWDD, OMH, OASAS, OCFS, OTDA, DOH, SOFA, DCJS, OVS, and SED.  Reimbursement for executive compensation is limited to $199,000 per year, with the discretion of the commissioner to adjust this salary but not to exceed Level 1 of the federal government’s Rates of Basic Pay for the Executive Schedule promulgated by the U.S. Office of Personnel Management.  (Health and Mental Hygiene, Part H)

o   Integrate Health & Behavioral Health Services.  Permits the Commissioners of the Department of Health, the Office of Mental Health, the Office for People with Developmental Disabilities, and the Office of Alcoholism and Substance Abuse Services to integrate health and behavioral health services among these agencies.  Authorizes these agencies to waive regulatory requirements or determine that compliance with another agency’s requirements is sufficient.  This bill is intended to facilitate implementation of the Health Homes initiative. (Health and Mental Hygiene, Part L)

o   Create Behavioral Health Advisory Council.  Provides for a combined comprehensive planning process for OMH, OPWDD and OASAS.  Creates a Behavioral Health Advisory Council for OMH and OASAS to replace and assume the responsibilities of the existing advisory bodies.  (Health and Mental Hygiene, Part N)