1. TENNESSEE DEPARTMENT OF MENTAL HEALTH Commissioner E. Douglas Varney Budget Hearing: November 15, 2011

2. 2 DEPARTMENTAL OVERVIEW Provides support and community treatment services for persons diagnosed with serious mental illness and alcohol and drug issues Operate 5 regional mental health institutes  660 beds  Over 10,000 admissions Provide over $135 million in both mental health and alcohol and drug abuse community services  450 contracts with over 200 agencies  Serving more than 250,000 individuals Provide a safety net of core behavioral health services for poor people diagnosed with serious mental illness  Behavioral Health Safety Net: 32,058 served  Crisis Services: 115,776 served  Crisis Stabilization Units: 8,551 admitted  Community Psychiatric Inpatient Services: approximately 800 admissions

3. 3 CURRENT BUDGET FY 2011-2012 Total Budget $305,269,200 Community Mental Health Services $81,018,700 Community Alcohol and Drug Abuse Services $54,380,000 Regional Mental Health Institutes $152,029,200  Lakeshore $27,252,600  Middle Tennessee $42,186,500  Western $34,601,700  Moccasin Bend $25,409,000  Memphis $22,579,400 Administrative Services $17,391,300 Major Maintenance $450,000

4. 4 5% REDUCTION TARGET AND VACANCIES Position Vacancies to support overappropriations $478,400 (7 positions) Position Reductions at Regional Mental Health Institutes $2,000,000 (No Bed Reductions)  Western MHI (15 positions)  Memphis MHI (13 positions) Targeted Community Funding Reductions $6,629,500 _______________ TOTAL REDUCTION: $9,107,900

5. 5 NON-RECURRING COMMUNITY SERVICES-$10,567,600 Non-Recurring Loss $4,335,800 Crisis Services $311,300 Alcohol and Drug Abuse Treatment $1,133,400 Peer Support Centers $2,377,300 Alcohol and Drug Counseling $53,600 In Schools Child Care Consultation $163,000 Planned Respite Services $114,000 Teen Screen $115,000 Respite Voucher Program $68,200 Cost Enhancement Requests $6,231,800 Behavioral Health Safety Net $904,400 Crisis Services $1,000,000 Alcohol and Drug Abuse Treatment $813,400 Criminal Justice MH & A&D Liaisons $373,600 Children and Special Populations $1,125,400 Mental Health Recovery Services $2,015,000

6. 6 REDUCTIONS AND NON-RECURRING LOSS SUMMARY FY2012-2013 BUDGET APPROVED FY 2011-2012 BUDGET $305,269,200 5% Budget Reduction Amount ($8,629,500) Vacant Position Reduction ($478,400)  Requested position restoration $368,300 Non-Recurring State Funds ($10,567,600)  Cost Enhancement Requests $6,231,800 Non-Recurring Federal Funds ($5,768,600) ____________ *Total Reductions and Non-Recurring Loss $18,844,000  +/-42,000 individuals impacted BUDGET AFTER REDUCTIONS $286,425,200 *Without cost enhancements, reductions/loss would equal $24,965,700

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10. 10 PHASE 2: SYSTEM TRANSFORMATION

11. 11 Community and Institutional Services

12. 12 PROPOSED BUDGET FY 2012-2013 Total Budget $280,393,000 Community Mental Health Services $85,702,700 Community Alcohol and Drug Abuse Services $50,344,500 Regional Mental Health Institutes $126,504,500  Lakeshore $0  Middle Tennessee $45,980,200  Western $33,480,200  Moccasin Bend $25,381,800  Memphis $21,662,300 Administrative Services $17,391,300 Major Maintenance $450,000 *TDMH Budget is $24,876,200 less for fiscal year 2012-2013