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DIRECTOR'S Update
September 1996

Personnel

Ted Searle, the former director of the Office of Resource Management, was appointed as Director of the CMHS Office of Policy, Planning, and Administration-formerly the Office of Policy and Planning. This office is charged with gathering information about field activities and analyzing the implications for CMHS policies and programs.

To better coordinate the Center's focus on managed care, CMHS has established a new position, Associate Director for Organization and Financing. Dr. Jeffrey Buck is serving in this important role.

Charlotte Mehuron, former director of the Office of External Liaison (OEL), has taken a similar position with the Food and Drug Administration. Until her replacement is hired, Dr. Thomas Bornemann, the Center's Deputy Director, will be the acting director of OEL.

The Rural Mental Health Association presented Ron Manderscheid, Director of the Survey and Analysis Branch, with its "Going to Bat" award for rural advocacy. He has long been a champion of consumers, supporting the Consumer/Survivor Research and Policy Work Group, and the Consumer Managed Care Network.

Budget

Fiscal Year 1996. Congress authorized the CMHS budget for FY 1996 in April. At slightly more than $413 million, it is $26 million less than the Center's FY 1995 budget. Nonetheless, the final budget for CMHS proved to be higher than might have been expected midway through the budget process.

The most significant cut was $14 million in knowledge development and application grant funds. Rather than make crippling, across-the-board cuts in all demonstration grants, CMHS decided to discontinue specific programs, including those for HIV/AIDS clinical training, which will be discontinued at the end of this year.

Fiscal Year 1997. Negotiations for the FY 1997 budget have been underway since May, when the House Subcommittee on Labor, Health, and Human Services held hearings on the President's proposed FY 1997 budget for SAMHSA. The Senate is scheduled to act on the budget this month.

The President's budget again proposed consolidating PATH with the Mental Health Block Grant. The House has maintained PATH as a separate budget line.

The House Appropriations Committee recommended a total of $415 million for CMHS for FY 1997. This is an increase of $2.1 million over FY 1996. This increase restores the Protection and Advocacy program to the FY 1995 funding level. The Knowledge Development and Application, Children's Services, Mental Health Block Grant, and PATH programs remain at their enacted FY 1996 funding level.

As did the FY 1996 budget proposal, the President's FY 1997 request proposes to replace the Community Mental Health Center Block Grant with Performance Partnership Grants. The future of this initiative, however, is uncertain.

CMHS staff continue to develop ambitious initiatives for FY 1997. These programs include those that:

  • Keep people with severe mental illness living independently;

  • Keep people with severe mental illness out of jail;

  • Involve consumers and families;

  • Promote mental health care for older Americans;

  • Create systems of care for Native American children; and

  • Improve crisis intervention services.

Federal Legislation

The House and Senate are considering several bills that affect the scope and quality of mental health services. Among these are S.2031, the Mental Health Parity Act of 1996. On Wednesday, September 11, Representative Roukema (R-NJ) introduced a companion bill in the House. The Senate hearings on this proposal are scheduled for today, September 12. The complete text of S.2031 and Senator Domenici's (R-NM) remarks are an appendix to this update.

Other legislative activities include:

Reauthorization. S.1180 is held up in the Senate because of a controversial provision about religious organizations. The Bill will not be considered during this session; the House has taken no action.

Performance Partnership Grants (PPGs). The Administration has considered asking Congress for legislative authority to test PPGs by supporting demonstration projects.

Saving Our Children: The American Community Renewal Act of 1996, HR.3647. This Act would allow religious organizations to receive funds under Title XIX of the Public Health Service Act. Such organizations would be able to maintain their religious character and would be permitted to hire exclusively individuals who are members of their religion. Such hiring practices could be accomplished, in part, by requiring that States provide equivalent licensing to counselors for religious organizations as they provide for other counselors. The House has not taken action on the measure.

P.L. 104-121. This law removed substance abuse as a condition that could lead to eligibility for SSI and SSDI.

All of these legislative measures could have a profound effect on the lives of people with severe mental illness. However, the major legislative issue Congress now faces, and which it faced in the last session, is that of insurance parity for mental health.

Reorganization at the Substance Abuse and Mental Health Services Administration and at the Center for Mental Health Services

As part of the "Reinventing Government" process, which strives to make Government more responsive to its customers, the Substance Abuse and Mental Health Services Administration (SAMHSA) and CMHS underwent a major reorganization. The creation of a SAMHSA Office of Program Services-which oversees SAMHSA activities related to grants, contracts, and personnel-enables CMHS to focus resources on services and less on administrative duties. This element of the reorganization dramatically increases CMHS' operating efficiency and its collaboration with its sister SAMHSA Centers, the Center for Substance Abuse Prevention and the Center for Substance Abuse Treatment.

Along with similar offices in the sister Centers, the CMHS Office of Resource Management was dissolved and consolidated into the new SAMHSA Office of Program Services.

KEN96-0041

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