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

SPONSOR Lovejoy

ORIGINAL DATE

LAST UPDATED

2/26/2007

3/2/2007 HB

SHORT TITLE Behavioral Health Purchasing Budget

SB 1102/aSPAC

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 727

SOURCES OF INFORMATION

LFC Files

Responses Received From

Administrative Office of the Courts (AOC)

Human Services Department (HSD)

Department of Labor (DOL)

Department of Health (DOH)

Children Youth and Families Department (CYFD)

Corrections Department (CD)

No Response Received From

Division of vocational Rehabilitation

Governor’s Commission on Disability

SUMMARY

Synopsis of SPAC Amendment

1. On page 2, line 13 through 18, strike Subsection B in its entirety and insert in lieu thereof the

following new subsection:

"B. The collaborative shall submit, through the human services department, a separate

identifiable consolidated behavioral health budget request. The consolidated behavioral health

budget request shall account for requested funding for the behavioral health services program at

the human services department and any other requested funding for behavioral health services

Senate Bill 1102/aSPAC – Page

2

from agencies identified in Subsection A of this section that will be used pursuant to Paragraph

(5) of Subsection C of this section."

The amendment requires the Collaborative to submit a consolidated behavioral health budget to

the Human Services Department. However, this does not require the appropriation be made to

HSD and it eliminates the requirement to present the budget to the Legislative Finance

Committee and other appropriate hearings. This makes the purpose of a consolidated budget

unclear if it is not for the purpose of a consolidated appropriation or general information for

targeted committees.

Since over 90 percent of the behavioral health budget resides at HSD, it is appropriate to

designate that agency as the information conduit.

Synopsis of Original Bill

Senate Bill 1102 (SB 1102) adds language to §9-7-6.4 NMSA 1978 that updates the Interagency

Behavioral Health Purchasing Collaborative (Collaborative) membership by changing the name

of the Agency on Aging, Office of Indian Affairs, and the Committee on the Concerns of the

Handicapped to their current names. In addition the bill requires the Collaborative to present a

single budget for behavioral health services, representing income and expenses across agencies.

The new language requires each agency that participates in the Collaborative to participate in the

budget preparation, and requires the Collaborative co-chairs to present it before the legislative

finance committee and other appropriate hearings.

FISCAL IMPLICATIONS

While there would be some fiscal impact but it would be minimal and un-determinate at this

time. In fact, the existing item C (3) in SB1102 requires the collaborative to meet regularly and

inventory all expenditures for behavioral health, including mental health and substance abuse.

SIGNIFICANT ISSUES

The changes should merely formalize the existing requirement to inventory all expenditures for

behavioral health, including mental health and substance abuse. LFC performance audits report

total FY06 Collaborative expenditures through ValueOptions as $300 million. Of this total HSD

is responsible for over $253 million through the Medicaid program. DOH contributes another

$36 million leaving about $11 million from CYFD and Corrections combined. Among the

Collaborative’s responsibilities is to develop a statewide master plan for delivery of services.

Formalizing the budget presentation requirement is essential to development and implementation

of a statewide master plan.

If the proposed transfer of the DOH Behavioral Health Division to HSD takes place over $289

million of the $300 million budget will be in one agency. At this point connecting the

Collaborative state behavioral health policy to the budget will be even more important

POSSIBLE QUESTIONS

Should the entire behavioral health budget be consolidated and appropriated to one program with

policy development from the Collaborative.

MW/nt