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Governor Pataki's recently released Executive Budget for the fiscal year beginning April 1, 2001 (FY 2001-02) offered some surprises for the mental health community in the form of the proposed "Community Mental Health Support and Reinvestment Act" -- also known as "Reinvestment 2."

Continuing the work of the Community Mental Health Reinvestment Act of 1993 -- which expires in September 2001, "Reinvestment 2" will provide $64 million in new annual funding for community mental health services by 2004 through the closure and consolidation of state psychiatric centers.

"Reinvestment 2" proposes an annual 2.5% cost-of-living-allowance (COLA) for non-profit community mental health workers for each of the next 3 years -- as well as a 10% Medicaid fee increase for other outpatient programs.

Under the proposal, Hutchings Psychiatric Center in Syracuse will close on January 1, 2003, and Middletown Psychiatric Center in Orange County will close on January 1, 2004. A total of 725 adult psychiatric center beds are to be eliminated over three years with the lifting of one-year moratorium on bed closure in April 2001.

The plan also calls for four children's psychiatric centers (CPC) to be re-located to the grounds of adult facilities. Queens CPC would relocate to Creedmoor Psychiatric Center, Rockland CPC to the Rockland Psychiatric Center, Sagamore CPC to Pilgrim Psychiatric Center, and Western New York CPC to Buffalo Psychiatric Center.

The Governor's proposal immediately drew criticism from state employee unions and some legislators who were all surprised by the plan. The future of the plan is uncertain as it faces significant opposition. The proposed relocation of children's facilities appears particularly controversial.

The OMH budget proposal also included funding for the second year in-phase of the Enhanced Community Services (ECS) program passed last year. Adult case management and supported housing services will receive an increase of $18.75 million. Children's community services will receive $7.45 million more, as well as a recommended trend factor and staffing enhancements at residential facilities.

Community-based housing will receive rent stipend increases ranging from $180 to $1,080 for some 5,100 existing Supported Housing units and an additional 2,000 units already authorized.

Supported employment will benefit from 400 new slots worth $900,000. The budget plan also calls for 104 new state-operated adult transitional residence beds, and 40 children’s crisis residence beds, to be operational in two years.

FY 2001-02 is the final year (Year 8) of Reinvestment funding under existing law.
$3.3 million in new funding for community programs is proposed (worth $6.6 million in future years).