Office of Mental Health

The enacted budget makes the following changes to the Executive Budget (analysis as of March 30, 2009):

• An All Funds appropriation of $2,047,858,000, an increase of $2 million from the proposed budget.  This increase of $1 million in the Administration and Finance Program and $1 million in the Adult Services Program reflects savings from increased Federal Medical Assistance Percentage (FMAP) provided from the Federal stimulus package.  This will fund services and expenses associated with the “continuation of respondents appearing in person before a judge in certain proceedings”. Some if not all of this additional funding may be related to the rejection of the Executive Budget proposal to delay the expansion of mental health programs in DOCS facilities as required by the SHU Exclusion law.

• Adds $400,000 in Aid to Localities funding to the NY Psychiatric Institute

• Adopts Article VII legislation which allows for the reduction of inpatient capacity in SFY 2009-10 by 450 beds with a minimum of two weeks’ notice to the Legislature, through ward closures of up to 150 beds or conversion to transitional placement programs.  Any other bed reductions must comply with existing 12 month notice provisions.

• Rejects Article VII legislation which would have provided for a four year extension, until January 1, 2014, of the current exemption for employees of the Department of Mental Hygiene, the Office of Children and Family Services, and local government operated, regulated, funded or approved programs from certain social work and mental health professional licensure requirements.

• Rejects Article VII legislation that would have delayed the expansion of mental health program authorized by the SHU Exclusion Bill by 3 years (until July 2014), allowing DOCS to evaluate the effectiveness of the Residential Mental Health Unit at Marcy and reassess need.  The legislation would also have restricted mental health services requirements of the SHU bill to only level 1 and 2 DOCS prisons, and reduced initial specialized mental health training for staff.

According to the Assembly Yellow Book, (analysis as of December 31, 2008):

• Proposes increased capital funding for a new inpatient forensic building at Mid-Hudson PC ($185 million), and a new adult inpatient building at Bronx PC ($112 million). These proposals are not identified individually in the Capital Projects budget, but are presumably part of the lump sum appropriations for the Mental Hygiene Capital Improvement Fund, Accreditation Purpose ($347.5 million).

The Executive Budget recommends (analysis as of December 16, 2008):

• A FY 2009-10 workforce of 17,127 FTEs, an increase of 56 FTEs over the adjusted FTE level for FY 2008-09. This net increase of 56 FTEs reflects the abolition/layoff of 120 FTEs, and the attrition of 410 FTEs, offset by 586 new fills. It is unclear which exact position eliminations will be subject to layoffs, however 73 FTEs will be abolished in association with a new “Transitional Placement Program” and we assume others are associated with the Forensic Program.

The following table identifies adjustments in the current fiscal year’s FTEs along with the recommended change from the adjusted FY 2008-09 FTEs by program:

• An All Funds appropriation of $2.045 billion, an increase of $108.5 million (5.6%) over the enacted SFY 2009-10 appropriation. Most of this increase is in Special Revenue funds. This includes a $40.2 million (3.6%) increase in funding for personal service and a $7.4 million increase (4.6%) increase in contractual services.

• The Executive Budget Agency Presentation narrative for OMH shows a net $40.4 million decrease in the personal service appropriation from the adjusted SFY 2008-9 agency appropriation. This reflects adjustments due to the Special Pay Bill containing negotiated union raises and agency-wide reductions made during the fiscal year.

• OMH employed an estimated 1,199 employees under consultant contracts in SFY 2008-09 at a cost of $41.7 million or an average cost of $34,838 per consultant contract employee.  It is estimated that $44.3 million will be allocated for consultant contracts in SFY 2009-10 for 1,199 employees, at a cost of $36,923 per consultant contract employee, a 6% increase over the average cost in SFY 2008-09. The purpose and use of these contract employees should be clarified at statewide labor management.

• 450 adult inpatient beds (11% of capacity) will be closed. Staffing associated with 150 beds will be shifted to community based programs. 300 beds will be converted to the “Transitional Placement Program”, which is a less staffing intensive outpatient level of care. This initiative will reduce the state workforce by 153 FTEs, of which 73 will be abolished. Over 75% of the savings will be reinvested. (2009-10 savings: $6.1 million). Controls on hiring and non-personal services will save an additional $10.1 million.

• Large holiday/overtime increases in the following programs/accounts: Adult Services Program, Mental Hygiene Patient Income Account, $13.3 million (51.2%), Mental Hygiene Program Fund Account, $11.1 million (85.6%); Children and Youth Program, Mental Health Program Fund Account, $4.3 million (87.7%); Forensic Program, Mental Health Program Fund Account, $7.3 million (31.1%); Research Program, Mental Health Program Fund Account, $311,000 (54.3%). The fiscally unsound use of overtime funding should be addressed at statewide labor-management.

• Staffing levels in the Sex Offender Management Treatment Act (SOMTA) program will be reduced from the current level of 2.0:1 to standards used in other states’ civil confinement programs (1.5:1). Under proposed Article 7 legislation respondents will remain in DOCS or on parole pending court proceedings and certain judicial proceedings will be performed with video conferencing. The Executive Budget associates 179 FTE reductions in the Agency Presentation and 217 FTEs in the Budget Briefing Book, this discrepancy should be clarified at statewide Labor/Management. (2009-10 savings: $11.7 million)

• A 3 year delay in implementation of the Special Housing Units bill pending assessment of current year initiatives required under the Disability Advocates, Inc. settlement. Postpones hiring 86 FTEs. (2009-10 savings: $8.6 million)

• Legislative additions in FY 2008-09 for research programs at Nathan Kline ($1 million) and Psychiatric Institute ($500,000) are eliminated.

• Article VII legislation would allow the closure or restructuring of eighteen wards in selected Adult facilities. Implementation of these ward efficiencies would reduce staffing needs and allow OMH to redirect a portion of these staff resources into State-operated community-based programs.

• Article VII legislation provides for a four year extension, until January 1, 2014, of the current exemption for employees of the Department of Mental Hygiene, the Office of Children and Family Services, and local government operated, regulated, funded or approved programs from certain social work and mental health professional licensure requirements. This extension will enable State operated and other human service organizations to recruit and retain a sufficient number of staff and achieve savings of over $10 million annually.