FY 14 Block Grant Planning
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Transcript of FY 14 Block Grant Planning
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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
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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
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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?”
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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
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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
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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
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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
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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)
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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)
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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
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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
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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%
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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
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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?
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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
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If Sequester Continues
• Frame the options• Across the board? • Notwithstanding MOE and other
requirements • Amount on “base” v. amount on
grants
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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
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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.
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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?
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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.
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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.
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Logistical and Fiscal Items
• NEED TO FRAME OUT:• Push vs. draw• Reporting• Other?
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Next Steps
• For SAPT alignment• Logistical/fiscal• Other?
• Next meeting or specific assignments