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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 3/3/05

HB 957

SHORT TITLE Intensive Outpatient Program Development

SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Department of Health (DOH)

Children, Youth and Families Department (CYFD)

Department of Corrections (DOC)

SUMMARY

Synopsis of Bill

House Bill 957 appropriates $100,000 from the general fund to the Department of Finance and

Administration (DFA) for development and expansion of an intensive outpatient program for

substance abuse clients in Taos, Colfax and Union counties.

Significant Issues

According to the Department of Health (DOH), Executive Summary & Highlights of "Behav-

ioral Health Needs & Gaps in New Mexico,” untreated mental health and substance abuse disor-

ders in New Mexico are estimated to cost the state's business, taxpayers and families more than

$3 billion annually. The report also found that:

(1) For every dollar spent on alcohol and other drug treatment, $7.14 is saved by reductions in

other social, governmental and economic costs.

(2) For every dollar invested in mental health services, there is a $10.00 savings in other social,

governmental, and economic costs.

House Bill 957 -- Page 2

(3) For every dollar spent on substance abuse prevention, treatment, and research; $41.43 is

spent by the State on the consequences of substance abuse in other programs.

DOH noted that these three counties (Taos, Union and Colfax) ranked 9

th

, 11

th

and 22

nd

, respec-

tively, for alcohol related death rates per 100,000 population in New Mexico from 2000 – 2002

(2004 Social Indicator Report). While in the same report drug related death rates were as fol-

lows: Taos ranked 12

th

, Colfax ranked 19

th

and Union ranked last.

FISCAL IMPLICATIONS

The appropriation of $100,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 would revert to the

general fund.

OTHER SUBSTANTIVE ISSUES

DOH noted that their Community Programs Bureau has existing alcohol and substance abuse

treatment services in Taos and Colfax counties. Taos/Colfax Community Services and the Rio

Grande Treatment Center provide outpatient substance abuse treatment services for Taos, Col-

fax, and Union counties. Additionally, the behavioral health service system (including the provi-

sion of substance use treatment services) will be redesigned effective July 1, 2005 per the Behav-

ioral Health Collaborative. One of the primary purposes of the design is to minimize fragmenta-

tion of services to leverage behavioral health dollars in a manner that will ensure quality services

and cost efficiencies. The Corrections Department has contracts with outpatient substance abuse

treatment providers in Taos County. Colfax and Union counties have limited services for outpa-

tient treatment. The number of offenders under the supervision of the Corrections Department in

Colfax and Union Counties is small.

Taos county is ranked second highest for state funded alcohol and drug treatment admission

rates, per 10,000 population between 2001 – 2003 for clients 18 years and older per year (2004

Social Indicator Report). Colfax county is ranked 14

th

and Union county is ranked 19

th

per

10,000 population for 18 years and older per year.

ALTERNATIVES

DOH suggested that one alternative would be incorporating these funds into the Behavioral

Health Purchasing Collaborative Initiative.

DH/yr