Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Feldman

ORIGINAL DATE

LAST UPDATED

02/24/07

HB

SHORT TITLE Community-Based Behavioral Health Services

SB 1034

ANALYST Geisler

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$16,000.0

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to: HB 609, HB 835, SB 879

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

Unknown, see

narrative

Recurring

Federal

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

Human Services Department (HSD)

Health Policy Commission (HPC)

SUMMARY

Synopsis of Bill

Senate Bill 1034 would appropriate $16,000,000 to the Department of Health (DOH) to provide

community-based services and supports to persons who:

•

have a mental disorder, a developmental disorder, a brain injury, a substance abuse

disorder or any combination thereof; or

Senate Bill 1034 – Page

2

•

have been in a residential treatment facility, psychiatric hospital, evaluation facility or jail

two or more times in the past four years and are eighteen years of age or older.

Funds may be used to provide case management or comprehensive community support services;

counseling; individual or group therapy; day or partial-day programming activities such as

psychosocial rehabilitation; medication; alcohol or substance abuse treatment and counseling;

crisis supports; and supportive housing or other supervised living arrangements. DOH may

purchase services from a single behavioral health entity, provide the services directly, or contract

with another qualified provider to provide the services directly. Some of the appropriation may

be used to provide matching funds for the Medicaid program on behalf of persons who meet

eligibility criteria as set forth above.

FISCAL IMPLICATIONS

HSD and DOH note that it is likely that some individuals who would be served with the

appropriation in SB 1034 would be Medicaid-eligible recipients. If this is the case, any monies

used to provide services included in the state medicaid benefit package could be eligible for

federal match. The number of eligible clients and the amount of this impact cannot be readily

determined.

This appropriation, if not spent in FY08, could carry over into future years. Any unexpended

balance would not revert to the general fund.

SIGNIFICANT ISSUES

The populations identified in SB 1034 have been targeted for enhanced behavioral health

services in the Governor’s Performance Measures and Accountability Contract. Provision of

expanded community-based services statewide would decrease the reliance on high-end inpatient

and residential facilities, and increase utilization of local outpatient and intensive outpatient

services to maintain individuals in their communities.

Supportive housing and other supervised living arrangements are especially in short supply. The

Developmental Disabilities Supports Division, Intake and Eligibility Bureau is under pressure to

expedite allocations to the DD Waiver for individuals dually diagnosed with developmental

disabilities and a mental illness, creating a ripple effect of other individuals remaining on the

waiting list even longer for such allocations.

ADMINISTRATIVE IMPLICATIONS

None for DOH or HSD. Use of such funds would need to be coordinated with the Interagency

Behavioral Health Purchasing Collaborative and administered by ValueOptions New Mexico.

RELATIONSHIP

SB1034 relates to the following: HB 609, which proposes to establish the Mandatory

Community Treatment Act and HB 835 proposes an appropriation of $5,000,000 for operation

expenses associated with the Mandated Community Treatment Act. SB 879 proposes an

appropriation of $27,000,000 for Medicaid Managed Care Behavioral Health Services.

Senate Bill 1034 – Page

3

AMENDMENTS

DOH and HSD suggest the following amendments:

1. Page 2, lines 4-5: Add clarifying language allowing appropriate community based services so

the sentence now reads:

"… counseling; crisis supports; and

supportive housing or other supervised living arrangements;

and any other appropriate community-based services.

2. Page 2, lines 5-11: Change this sentence to read as follows, in keeping with §9-7-6.4:

The department, as a Collaborative agency member, shall use this funds in a manner than ensures

both availability of services and efficient use of all behavioral health funding

. may

purchase

services from a single

behavioral health entity or provide the

services directly or contract with

a

n

other qualified provider to provide the services directly, and the

The department may use

some of the appropriation to provide matching funds for the medicaid program on behalf of

persons who meet eligibility criteria as set forth above.

GG/mt