PROPOSED BUDGET

Behavioral Health Fund Center 166
Fiscal Year 2012-13 Proposed Budget
COUNTY ADMINISTRATOR’S COMMENTS AND RECOMMENDATIONS
The recommended budget reflects an increase in revenues of approximately $3.77 million or 9%, an increase in
total expenditures of more than $2.78 million or 6% and a decrease in General Fund support of $987,704 or 13%
compared to the FY 2011-12 Adopted Budget.
Revenues
Two key legislative changes have occurred over the past year that results in a significant increase in revenue to
Behavioral Health:
1. The 2011 Health and Human Services Realignment (Assembly Bill 118) resulted in several programs now
being funded with dedicated sales tax revenue rather than State General Fund dollars or realignment
revenue from the Vehicle License Fees. Such programs include Drug Medi-Cal, State Drug and Alcohol
and Perinatal programs, Community Mental Health Services, Management Care Program, and Early
Periodic Screening, Diagnosis and Treatment (EPSDT) which is the Medi-Cal program for children. The
net result of the changes in funding sources is an increase of approximately $2 million compared to the
FY 2011-12 Adopted Budget.
2. Assembly Bill 1297 described in the department’s comments above, is expected to increase revenue from
the Federal government for Medi-Cal eligible services. Prior to the passage of this bill, the State had
administratively limited the amount that could be billed for services to approximately 66% of the actual
cost of providing these services. This limit then reduced the amount of Federal Medicaid reimbursement
that could be claimed by the County, since the Federal reimbursement is 50% of the amount billed. This
limitation resulted in the County General Fund paying for the portion of the cost to deliver Medi-Cal
eligible services that had not been reimbursed. With the passage of AB 1297, Medi-Cal billings will now
be billed at actual service cost. This is expected to yield an additional $1.0 million in Medi-Cal revenue; a
19% increase compared to the FY 2011-12 Adopted Budget.
As a result of the increase in Federal reimbursement for Medi-Cal and an estimated $644,000 (20%) increase in
the EPSDT allocation, funding for Martha’s Place Children’s Assessment Center has improved, providing
sufficient funding to restore some of the positions eliminated in the prior year (as detailed below) and to reduce
the amount of General Fund support needed by approximately 28%. It is now estimated that 86% of the
$939,118 budget for Martha’s Place will be funded with other revenue and General Fund support will provide 14%
of the funding.
Mental Health Services Act (MHSA) funding is decreasing by $569,375 or 5% and reflects the funding level for the
five components of this program based on plans currently in effect. The reduction in MHSA funding is primarily
due to the increase in Medi-Cal and EPSDT funding described above. Thus funding for MHSA programs remains
at FY 2011-12 levels.
Public Safety Realignment revenue (AB 109) is included in the FY 2012-13 recommended budget in the amount
of $644,463, contributing to the overall increase in revenue. AB 109 transfers responsibility for supervision of
lower level inmates and parolees from the State to counties. Behavioral Health provides drug and alcohol
treatment as well as mental health services to AB 109 offenders in the jail and after release. No AB 109 funding
was included in the FY 2011-12 Adopted Budget. However, $270,172 was added to the Behavioral Health budget
in October, 2011 when the transfer of responsibility became effective. The more than $374,000 increase reflects
a full year of funding in FY 2012-13 for AB 109.
Revenue is also increasing from Federal grants, netting almost $303,000 or 21%. Drug and Alcohol Services was
successful in competing for a nationwide grant called the Adult Treatment Court Collaborative. This grant, one of
only 11 awarded in the country, adds more than $450,000 in revenue, which helps offset the reduction in other
funding from grants that are ending. In addition, a portion of the $303,000 increase ($111,780) is associated with
additional carry-over funding for the Children Affected by Methamphetamine grant to be used to increase client
capacity and supplement additional grant activities. This $111,780 in funding is added to the recommended
budget as noted below to fund additional staff.
Health and Human Services C-123