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California Budget FY 2004-05 - May Revision TO: NAMI California Global Email Distribution List FROM: Grace McAndrews, Executive Director The following information was provided by the California Coalition for Mental Health. -------------------------------------------------------- The Governor's May Revision to the 2004-05 State Budget contains good news regarding AB 3632 payments and funding, changes to the way EPSDT will be adversely affected, and vague language affecting Pharmaceutical payments that could affect access to medications under MediCal or people in state prisons. (We can't say more about that without learning more details-which willbe forwrded when we receive them) In all other respects it appears to be the same as the January Budget which means no funding for the $20 Million Children's System of Care, no new grants for the Early Mental Health Initiative (reducing it from $10 million to $5 million) and continued funding for the $55 million Adult System of Care. The May revision provides no additional details about the proposed MediCal Redesign which is now viewed as a 2005-06 issue. AB 3632 FUNDING AND PAYMENTS The May revision increases the allocation of federal Special Education funding for this program from $69 million to $100 million. The May revision also includes a "State-Local Government Agreement" which provides that the "existing mandate debt (including about $200 million in AB 3632 claims) would be repaid to local governments over five years, beginning in 2006-07". This is structured so that counties could immediately borrow against this future obligation and reimburse mental health providers in 2004-05. The proposal also states that future unpaid mandates would have a cost estimate prepared within one year and be repealed if not funded the next year. EPSDT The budget eliminates the proposal to rebase the maximum rates but replaces it with a proposal to increase the county share of costs for growth from 10% to 20% (except for "small" counties -we will forward the definition when we have it -either later today or tomorrow). The May revision also eliminates (at least for now) the proposal to redefine "medical necessity". Last Updated on 05/13/04 webmaster@namiscc.org |
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