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F I S C A L I M P A C T R E P O R T

SPONSOR Gonzales

DATE TYPED 2/2/05

HB 597

SHORT TITLE Taos Alcohol & Substance Abuse Services

SB

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$82.0

Recurring General Fund

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Health Policy Commission (HPC)

Administrative Office of the Courts (AOC)

No response received from the Department of Health (DOH)

SUMMARY

Synopsis of Bill

HB 597 appropriates $82 thousand from the general fund to the DOH for FY06 to contract for

alcohol and substance abuse treatment services in Talpa, Taos County, to include curriculum

materials, and professional and administrative services.

Significant Issues

Facts on Talpa, New Mexico

•

Talpa is a rural community in Taos County, located on NM Highway 518.

•

Taos County has a 2003 population estimate of 31,269 people, about 60% of whom are

Hispanic.

•

Per capita personal income in 2001 for Taos County was $18,539, or $4,542 below the

state average.

•

Taos County is one of 5 counties in NM that are a federally-designated Mental Health

Professional Shortage Area (MHPSA).

House Bill 597 -- Page 2

The HPC reports on rates of alcohol and drug dependence by region (2002):

•

Northwest (Cibola, McKinley, San Juan Counties) – 7.54%

•

North Central and NE (Colfax, Harding, Los Alamos, Mora, Rio Arriba, Sandoval, San

Miguel, Santa Fe, Taos and Union Counties) – 5.02%

•

Southwest (Catron, Dona Ana, Grant, Hidalgo, Luna, Sierra, Socorro, and Valencia

Counties) - 4.63%

•

Southeast (Chaves, Curry, De Baca, Eddy, Guadalupe, Lea, Lincoln, Otero, Quay, Roo-

sevelt, Torrance Counties) – 4.00%

•

Bernalillo County – 5.95%

The HPC reports on substance abuse in New Mexico:

•

The abuse of drugs is one of New Mexico’s most serious problems. The effects are ap-

parent and impact personal health, family, work, education, and the legal and correctional

systems. In each of areas, the impacts of alcohol and illicit drugs, leading to illness, crime

and the incarceration of large numbers of New Mexicans, can be seen.

•

Across the United States, injection drug use has contributed to the spread of HIV/AIDS.

In New Mexico, rates of HIV/AIDS infection are still low even among injection drug us-

ers; however, over 80% of injection drug users are infected with Hepatitis C, and over

60% with Hepatitis B. Over a period of years, these infections can lead to liver cancer,

liver failure and possible eventual death.

•

The DOH Behavioral Services Division has identified 128,000 adults in NM who have

substance abuse problems. Of those, 32,000 sought treatment and counseling services and

7,000 were actually served as clients. Services are provided from community based

treatment centers throughout the state.

•

A study by the RAND Corporation found that every additional dollar invested in sub-

stance abuse treatment saves taxpayers $7.46 in societal costs (crime, violence, loss of

productivity, etc.)

•

This same study found that additional law enforcement efforts cost 15 times as much as

treatment to achieve the same reduction in societal costs.

PERFORMANCE IMPLICATIONS

HSD recommends HB 597 require planning and funds be coordinated with the Interagency Be-

havioral Health Purchasing Collaborative’s goals and objectives; the local behavioral health col-

laborative for Taos County.

FISCAL IMPLICATIONS

The appropriation of $82 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the

general fund.

House Bill 597 -- Page 3

The LFC FY06 appropriation recommendation is balanced between revenues and expenditures

and any increase in recurring funding must be offset by reductions in other areas. The Legislature

must consider all priorities and funding requirements to find revenue to support this legislation.

ADMINISTRATIVE IMPLICATIONS

The AOC reports the Behavioral Health Purchasing Collaborative, comprised of 15 state agen-

cies including DOH, is currently reviewing responses to its RFP for a Statewide Entity. The

Statewide Entity will be in place as of July 1, 2005, and at that time will begin to administer over

$200 million in substance abuse and mental health treatment funds that are currently adminis-

tered individually by the Behavioral Health Purchasing Collaborative’s 15 state agencies.

As of July 1, 2005, the substance abuse treatment services addressed by this bill will fall under

the administrative responsibilities of the Statewide Entity, not the DOH. Pending selection of the

Statewide Entity and negotiation of administrative mechanisms related to existing substance

abuse and mental health treatment funds, it is not clear whether the request for additional funds

in this bill will be allowed to go to DOH or have to be distributed in some other manner, if at all.

TECHNICAL ISSUES

The HSD recommends curriculum and clinical services be consistent with current, nationally

recognized best practices for alcohol and substance abuse treatment services.

OTHER SUBSTANTIVE ISSUES

The HPC reports on alcohol abuse in New Mexico:

•

Alcohol and other drug dependence rates in New Mexico are higher than the national av-

erage. The national prevalence rate for all groups is 4.8%, while the prevalence rate for

New Mexico is 6.5%.

•

Driving while intoxicated is the second largest category of offenses resulting in jail time.

o

Almost one-fourth of all New Mexico jail detainees have DWI offenses.

o

There were 13,737 total DWI convictions and 5,659 repeat DWI convictions in

New Mexico in 2001.

•

New Mexico consistently ranks high in the nation for alcohol-related motor vehicle fatali-

ties per capita, although there has been a general decrease since 1988 (was 70%) in which

NM was #1 in the nation. The number of New Mexico fatalities of alcohol-involved ac-

cidents in 2004 was 37.27%, or almost half of the 1988 percentage.

•

Lack of treatment for substance abuse in New Mexico also has costs beyond the delivery

of treatment services. Unrelated mental health and substance abuse disorders in New

Mexico are estimated to cost the state’s businesses, taxpayers and families more than $3

billion annually.

•

Alcohol consumption has been the leading cause of premature death in New Mexico.

This was due to cirrhosis of the liver as well as alcohol-involved motor vehicle crashes,

House Bill 597 -- Page 4

suicide and homicide. In fact, our statewide rate of alcohol-involved traffic crash deaths

was more than twice the national rate.

•

Only one in-patient treatment facility and approximately 5 outpatient treatment facilities

are in Taos County.

ALTERNATIVES

See administrative implications.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

Persons in need of alcohol and drug treatment services may be underserved which could nega-

tively impact the Talpa community and the Taos County healthcare systems in general.

AHO/lg