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

SPONSOR Salazar, N.

ORIGINAL DATE

LAST UPDATED

02/01/08

HB 393

SHORT TITLE Restore Behavioral Health Programs & Services

SB

ANALYST Hanika-Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$4,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to an Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 393 appropriates $4 million from the General Fund to HSD for FY09 to restore and

provide continuation and stabilization of substance abuse and mental health services in NM. The

services identified include prevention, intervention and inpatient and outpatient treatment of

substance abuse and mental illness; crisis response programs; juvenile justice services; intensive

case management; intensive outpatient services; opioid replacement therapy; psychosocial

rehabilitation; transitional living; psychiatric services for infants, youth and adults; and any other

services that were discontinued or reduced due to redirected funding in prior fiscal years.

FISCAL IMPLICATIONS

The appropriation of $4 million contained in this bill is a recurring expense to the General Fund

Any unexpended or unencumbered balance remaining at the end of FY09 shall revert to the

General Fund.

House Bill 393 – Page

2

Agencies report that in 2004, legislation was enacted that created the Behavioral Health

Purchasing Collaborative (BHPC). The collaborative model called for combining all sources of

behavioral health funding to create a less fragmented system which would provide quality

services. HB 393 reinstates the previous funding system for diverse behavioral health programs

if those programs were discontinued or reduced. HB 393 creates a parallel system of funded

programs which would not be connected to the behavioral health service system, which is

currently being implemented.

This particular appropriation is not included in the Governor’s Executive Budget. The Executive

Budget recommendation includes a General Fund appropriation to contract for substance abuse

and mental health prevention and intervention services statewide.

SIGNIFICANT ISSUES

Agencies report the BHPC has contracted with a single, statewide entity, Value Options, to

provide the array of services listed in HB 393. Standard definitions of behavioral health services

and requirements for best practices are currently in place through this statewide entity to assure

that quality, appropriate and culturally sensitive services are delivered.

ADMINISTRATIVE IMPLICATIONS

HSD currently purchases a majority of its behavioral health services through the Behavioral

Health Purchasing Collaborative’s contract with ValueOptions New Mexico (VONM).

TECHNICAL ISSUES

HSD reports the bill does not specify the programs to receive this appropriation and mixes

together services for adults and children as well as mental health and substance abuse services.

The bill states that services are “now chronically under funded due to the redirection of funds to

the administration of those programs in New Mexico". HSD states that it is more accurate to say

that services are under funded because appropriations don’t address the level of need as based on

the “Behavioral Health Needs and Gaps in New Mexico, July, 2002.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Behavioral health services, both mental health and substance abuse services, will be funded at

the level currently approved by the Legislature.

MW/mt