Below is the Impact Statement describing how failure to pass the
Governor's Tax Reform package may impact the Department and its
operations.
____________________________________
Steve Hamerdinger
Director, Office of Deaf Services
ALDMHMR
100 North Union, Montgomery, AL 36130
(334) 353-4301 (TTY)
(334) 242-3643 (Voice)
_________________________________________________

Alabama Department of Mental Health and Mental Retardation
Budget Cuts Impact Statement

The Constitution of the State of Alabama does not allow deficit
spending. Consequently, a 20% cut to the current state General Fund
budget (FY 03) would reportedly be necessary to keep the state General
Fund budget out of deficit (in FY 04). The following outlines the
impact a 20% General Fund cut would have on the Department of Mental
Health and Mental Retardation.

* A 20% cut to the department's General Fund budget would
result in the loss of $19,366,526 in state dollars.

* The loss of these state dollars would result in a
further loss of approximately $20 Million in federal dollars.

* A 20% cut to the department's General Fund budget would
result in actual cuts in services which could not be off-set with
savings realized by any consolidation plans.

* A reduction over current year level of funding (FY 03
budget) would result in the non-settlement of the longstanding Wyatt
case, which is scheduled for a termination hearing on October 1, 2003.

* The Indigent Drug Program, which provides critically
needed psychiatric medications for thousands living in the community,
would be drastically cut and would result in increased and costly rates
of re-hospitalization further slowing the recovery of consumers.

* Over 2,000 persons with mental retardation on waiting
lists would not receive any services despite their Medicaid eligibility.

* Funding for substance abuse services would be cut
resulting in greater delays in accessing treatment programs.

* Approximately 21 central office administrative support
positions/functions would be eliminated.

* Additional state mental health facilities would be
closed, over and beyond those included in DMH/MR's consolidation plans.

The above cuts in services would devastate the mental health system in
Alabama, leaving thousands of Alabamians in crisis and without needed
services. Additionally, the impact would be catastrophic as it would
result in the non-settlement of the Wyatt case, which has spanned well
over 30 years. To not end this case would unquestionably result in
continued litigation with enormous legal expense; an expense Alabama
cannot afford to pay. The report of the President's New Freedom
Commission on Mental Health (released in July), finds that the mental
health care system in America is in a terrible crisis and in need of
total reform and calls for the wholesale transformation of the entire
system nationwide. This tragedy is the result of a culmination of many
factors including stigmas associated with mental illness, the lack of
public education and the woefully inadequate funding of service delivery
systems nationwide. Like other mental health systems across this
country, Alabama's public mental health system is in crisis. While
Alabama has made noted strides in many areas of mental health, these
strides have been greatly hindered by the continuous budget crisis
cycles that plague Alabama. The report of the President's Commission
may be viewed at www.MentalHealthCommission.gov.




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