SAMHSA’s Weekly Financing News Pulse: State and Local Edition April 21, 2010

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Alabama Legislature Approves Budget, Medicaid and CHIP Funding Maintained

On April 13, the Alabama House of Representatives and Alabama Senate approved a $1.6-billion general fund budget for state agency operations that maintains Medicaid and Children's Health Insurance Program (CHIP) funding at their current levels. The budget relies on a $197-million Federal extension of American Recovery and Reinvestment Act funding that Congress has not yet approved.

Michigan's Shiawassee County Considers Bond Issue To Refinance CMHA

The Shiawassee County Board of Commissioners is considering putting together a bond issue to refinance the Community Mental Health Authority (CMHA) facility. The proposal under consideration requires the board to issue bonds and use the proceeds to acquire CMHA's facility, which it would then lease to CMHA. CMHA would make payments equal to the amount of debt service on the county's bonds for 23 years, at which point the bonds would be paid off and CMHA would take back control of the title from the county. CMHA would be responsible for all costs and maintenance of the building for the duration of the lease. The CEO of CMHA says that the plan would save them $15,000 annually.

Nevada Governor Agrees To Allocate Funds To Prepare for Medicaid Expansion

On April 14, Governor Jim Gibbons (R) agreed at a Nevada Board of Examiners meeting to spend $279,119 in state funds to establish a planning unit to prepare for the expansion of Medicaid in 2014. Nevada currently only allows families with incomes up to 100 percent of the Federal Poverty Level (FPL) to enroll in Medicaid, but under the Patient Protection and Affordable Care Act, adults without children will become eligible for Medicaid and the income eligibility expands to up to 133 percent of the FPL. The funds will allow Nevada Department of Health and Human Services Director Mike Willden to hire staff and a consultant to determine how much additional staff and funding will be necessary for the state to comply with the new requirements. Willden projects that under the new law, Nevada will add 150,000 to the 260,000 currently on its Medicaid rolls.

Virginia Governor Proposes Budget Amendments on Mental and Substance Use Treatment

Governor Bob McDonnell (R) proposed two budget amendments that would affect behavioral health treatment in Virginia. The first would authorize the expansion of the state's Medicaid managed care program to cover community mental health and substance abuse services and residential treatments. The second would add behavioral health drugs to the Medicaid Preferred Drug List, a proposal that legislators rejected under previous administrations. Lawmakers will vote on the measures on April 21. To continue reading these articles and see all articles included in this week's State and Local Financing News Pulse
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