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1
FY 14 Block Grant Planning
John R. Kasich, GovernorTracy J. Plouck, Director, ODMHOrman Hall, Director, ODADAS
(Future) Department of Mental Health & Addiction Services
May 9, 2013
2
Agenda
• Objectives for FY 14 plan• Brief review of FY 13 circumstances:• SAPT• MH• Sequester
• Discuss philosophy• Review, discuss scenario options• Logistical/fiscal items• Identify next steps
3
Objectives
• Where appropriate, adopt a consistent philosophy and process for both block grants
• Review with community partners:• The cash challenges of the SAPT Block
Grant• SFY13 SAPT sequestration impact • Funding Scenarios: “What if sequester
continues?”
4
FY 13 Circumstances - SAPT
• $62.7MM• Basic requirements:• 20% prevention• $10.9MM womens’
(MOE requirement)
• Cash availability has been a challenge in recent periods
5%
63%
30%
2%
FY 13 SAPT BG Budget Total
3G40 Admin
3G40 Allocation
3G40 Grant
3G40 Allocation & Grant
5
FY 13 Circumstances - SAPT
• Historically, ODADAS has used SAPT resources in concert with GRF and rotary funds (i.e., Fund 4750)
• Reductions to any one of these sources result in a need to refine all three types of community allocations in order to maintain parity approach among grantees• We will be adjusting the budget
planning process to reach a solution for predictability
6
FY 13 Circumstances – MH BG
• $15MM (includes carryover)
• Approx. half disbursed by formula (qtrly)
• Grants designated by Department priority area (w. Planning Council input)
5%
50%
45%
FY 13 MH BG Budget Total
3A90 Admin3A90 Allocation3A90 Grant
7
FY 13 Circumstances – MH BG
• MH block grant “base” allocations ($7.5MM) to boards are formula based and separate from other subsidy allocations, i.e., different approach than SAPT
• Projects are granted through Notice of Award• Some are competitive; others non-
competitive• Priority areas determined by SAMHSA,
Planning Council and Director
8
FY 13 Circumstances - Sequestration
• Communication to field 3/25 regarding reductions to major federal grants:
5% reductions against FFY13 Notice
of Award
MH block grant $721,932
SAPT block grant $3,463,988 (reduction of $164,420 from SAPT12 to SAPT13 award plus $3,299,568
SAPT13 sequester reduction)
9
FY 13 Circumstances - Sequestration
• FY 13: No reduction impacts to the field during SFY13 as a result of the following; o Utilized AoD state resources to realign
originally awarded SAPT dollarso Cancelled unobligated balances and
projects that have not yet begun (MH & AoD)
• FY 14 plan: determine approach in concert with community partners o Application of SAPT13 sequestration
reduction over SFY14/15 biennium (8 qtrs)
10
Philosophy
• Promote transparent planning & monitoring
• Apply outcomes & accountability to make informed funding decisions • Anticipate changes over time based on
our work with the field in these planning sessions
• Begin commitment to address known challenges over a reasonable period of time
• Support predictable, user-friendly processes
• Responsive to persons receiving MH/AoD services
11
The Known Sequester
• As a new consolidated organization, we are committed to sharing a strategy across grants to the extent possible• Examples: shift some SAPT spending related
to dual diagnosis; relieve other shared administrative obligations where possible
• Limited opportunities
12
The Known Sequester
• SAPT13 SequestrationAward Amount
Subsidy (95%) Admin (5%)
SAPT13 Award 65,991,361 62,691,793 3,299,568
Sequestration 5% reduction
(3,299,568) (3,134,590) (164,978)
Reduced SAPT Award
62,691,793 59,557,203 3,134,590
Reduced SAPT13 Award
Award Amount Subsidy 95% Admin 5%
13
The Known Sequester
• For SAPT:• Maintain women’s MOE and prevention
set-aside• Shift some project grants to other
sources• Apply selective reductions to project
grants• Timing
14
The Known Sequester
• For MH BG:• Maintain formula awards to Boards• Maintain priority pops – SMI, SED• Shift some responsibilities to other
sources• Apply selective reductions to project
grants• Timing?
15
If Sequester Continues
• No formal communication received from SAMSHA to indicate this will happen, or that the 5% initial sequester reduction amount would be the actual amount reduced
• Amounts if a 5% carries forth (based on FFY13 awards):• SAPT: $3,299,568• MH BG: $721,932
16
If Sequester Continues
• Frame the options• Across the board? • Notwithstanding MOE and other
requirements • Amount on “base” v. amount on
grants
17
Scenarios
• We want to achieve two plans by the end of this process:• FY 14 with FFY13 total sequester impact
of $4.1MM (both MH and SAPT)• FY 14 with continued sequester against
FFY14 MH and SAPT Block Grants • Both scenarios must contemplate SAPT
alignment activities
18
SAPT Alignment: the Problem
• Basic Information:• Feds allow the state 8 quarters to spend the
grant, but we spend SAPT in the first four quarters of the federal award.
• Historically resources obligated to the field in July include an October SAPT Award.• Example: SAPT13 October Award supports
SFY14 1st quarter and SAPT14 October Award supports SFY14 2nd, 3rd, and 4th quarters
• Only 25% of cash for the SFY is liquid and available for disbursement.
19
SAPT Alignment: Proposed Solution
• Stretch SAPT Award allocation over more quarters in order to come into alignment with the amount actually available to support SAPT revenues
• Will result in less cash to the field in short term, but more predictability in short and long term• What terms need considered?• How may impacts be managed?
20
SAPT Alignment: Proposed Solution
Based on SAPT13 Award
Subsidy Portion (95% of Award)
Subsidy 4 QTR Distribution
Subsidy 5 QTR Distribution
Quarterly Reserve for Alignment
Original 62,691,793 15,672,948 12,538,359
Sequester (3,134,590) (783,647) (626,918)
Revised Amount
59,557,203 14,889,301 11,911,441 2,977,860
• Proposed SAPT alignment solution for reserve
Alignment applied over a 5 quarter period would build an SAPT reserve at the Department to off-set federal cash delays.
Restored SAPT funding decisions could resume after the initial 5 quarters.
21
SAPT Alignment: Proposed Solution
• Need to “catch up” approximately $3MM each quarter in order to align with federal award availability:• No other resources available to cushion
the gap that occurs during alignment process
• Component for consideration:• Programs funded with multiple sources
(Block Grant, State GRF, Rotary) and how to manage the Block Grant Reduction fairly.
22
Logistical and Fiscal Items
• NEED TO FRAME OUT:• Push vs. draw• Reporting• Other?
23
Next Steps
• For SAPT alignment• Logistical/fiscal• Other?
• Next meeting or specific assignments