COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1702-02

Bill No.: SB 465

Subject: Requires the Department of Mental Health to assess persons referred to them and provide residential treatment if needed.

Type: Original

Date: February 26, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
General Revenue (Unknown) (Unknown) (Unknown)
Total Estimated

Net Effect on All

State Funds *

(Unknown) (Unknown) (Unknown)

* Could exceed $100,000 in a fiscal year.

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Federal Funds Unknown Unknown Unknown
Federal Funds (Unknown) (Unknown) (Unknown)
Total Estimated

Net Effect on All

Federal Funds*

$0 $0 $0

* Revenues and expenditures unknown but net to $0.

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Official from the Office of State Courts Administrator and Department of Social Services stated the proposed legislation would not fiscally impact their organizations.



Officials from the Department of Mental Health (DMH) stated the DMH is unable to determine the number of referrals that could be made as a result of this legislation, and therefore, is unable to determine the fiscal impact. However, since the proposed legislation appears to be an entitlement for persons affected by any type of mental condition, developmental disability, or alcohol or drug abuse problem, the cost to provide residential treatment services could be very significant. Residential services would range in cost by division and targeted population. Using the scenario of 100 referrals at a per diem cost, below are examples of the DMH's costs to provide residential services (does not include the 60% FFP):



Division of MRDD

100 individuals x $60 per day x 365 days = $2,190,000



Division of ADA

100 individuals x $17 per day x 365 days = $620,500



Division of CPS

100 individuals x $23 per day (for adults) x 365 = $839,500



The Department of Mental Health currently pays for and provides residential services for court committed forensic clients.



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
GENERAL REVENUE FUND * (Unknown) Could exceed $100,000 (Unknown) Could exceed $100,000 (Unknown) Could exceed $100,000
FEDERAL FUNDS
Income - Department of Mental Health Unknown Unknown Unknown
Expenses - Department of Mental Health (Unknown) (Unknown) (Unknown)
ESTIMATED NET EFFECT ON
FEDERAL FUNDS * $0 $0 $0



FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Small Business



The proposed legislation could result in the DMH going to private providers for additional bed capacity, thereby having an unknown, positive, impact on small businesses.



DESCRIPTION



The proposed legislation provides that the Department of Social Services or the Courts may refer persons to the Department of Mental Health for assessment. If this assessment indicates that the person is affected by a mental disorder, mental illness, mental retardation, developmental disability, or alcohol or drug abuse, the Department of Mental Health cannot refuse to provide residential treatment services to the person.



This legislation is not federally mandated, would not duplicate any other program and would require additional capital improvements or rental space.



SOURCES OF INFORMATION



Office of State Courts Administrator

Department of Mental Health

Department of Social Services











Jeanne Jarrett, CPA

Director



February 26, 2001