1. BUDGET BRIEFING Presentation to the HEALTHCARE FOUNDATION OF GREATER KANSAS CITY March 25, 2011

2. OVERVIEW DMH serves 170,000 Missourians annually with serious mental illnesses, developmental disabilities and addictions.  At least 50% are Medicaid eligible On any given day, 95% of all DMH clients are served by over 1,600 contracted providers, who employ over 30,000 Missourians to provide these services. DMH directly operates 15 facility-based psychiatric hospitals and DD habilitation centers employing over 7,500 staff who serve approximately 1,900 residents or patients. 2

3. FY 2011 BUDGET BY PROGRAM CATEGORY DMH COMMUNITY SERVICES CATEGORYAMOUNT % TOTAL FTE CPS Community Programs$224 million18.6%35 DD Community Programs$486 million40.5%15 ADA Community Programs$115 million9.6%56 DD Regional Offices/Community Support $35 million2.9%762 3

4. FY 2011 BUDGET BY PROGRAM CATEGORY DMH FACILITIES CATEGORYAMOUNT % TOTAL FTE State Psychiatric Facilities$174 million14.5%3,961 DD Habilitation Centers$92 million7.6%2,783 Medications for Non-Medicaid Consumers $12 million1.0% 4

5. FY 2011 BUDGET BY PROGRAM CATEGORY OTHER PROGRAMS / ADMINISTRATION CATEGORYAMOUNT % TOTAL FTE Other (Federal Grants, Mental Health Trust Fund, Overtime Pool, Federal Revolving Funds, etc.) $44 million3.6%26 DMH – All Administration$17 million1.4%236 TOTALS $1.199 billion100%7,874 5

6. FY 2012 CORE REDUCTIONS GENERAL REVENUE (GR) CORE REDUCTIONS APPROPRIATIONS FTE FTE CPS Inpatient Redesign$3,844,996368.80 DD/CPS Facility FY 2011 Expenditure Restrictions Made Permanent $4,057,10767.71 ADA/CPS/DD FY 2011 2% Provider Rate Reductions Made Permanent $7,700,000 DD Regional Offices – Elimination of District Administrators and Business Office Consolidation $818,37424.37 DD Habilitation Center Transitions to Community Services $225, 7687.40 Department Wide E&E Reductions (travel, professional services, equipment) $134,603 6

7. FY 2012 CORE REDUCTIONS GENERAL REVENUE (GR) CORE REDUCTIONS APPROPRIATIONS FTE FTE SUBTOTAL GR CORE REDUCTIONS$16,780,848468.28 DD Habilitation Center GR Replacement With Federal Funds $23,225,784782.74 GRAND TOTAL GR CORE REDUCTIONS (Not Including Fringe) $40,006,6321,251.02 7

8. FY 2012 CORE REDUCTIONS SIGNIFICANT FEDERAL & OTHER FUND CORE REDUCTIONS APPROPRIATIONS FTE FTE Expiring Grants (Children’s System of Care, Drug Free Schools, ADA Strategic Prevention Framework) $5,932,3011.20 Reduced Federal Funding in ADA Access to Recovery Grant $2,800,000 Medicaid FFP Rate Adjustment (FED Share 63.59% to 63.41%) $1,148,209 ADA Treatment Funding From Inmate Revolving Fund $485,781 TOTAL FEDERAL & OTHER FUND CORE REDUCTIONS (Not Including Fringe) $10,366,2811.20 8

9. FY 2012 NEW DECISION ITEMS NEW DECISION ITEMGR FED & OTHER TOTALFTE ADA/CPS/DD Medicaid Cost-to- Continue & Caseload Growth (Includes $6.37 million FED for Inpatient Redesign Community Placements) ADA:$1,396,825 GR CPS:$5,202,854 GR DD:$13,633,280 GR $20,232,959$41,433,460$61,666,419 DD Habilitation Center FED Replacement of General Revenue $23,225,784 782.74 Increased DMH Facility Food Costs (2.5% Inflationary Increase) $126,601 Increased DMH Facility Medical Care Costs (5.1% Inflationary Increase) $503,491 9

10. FY 2012 NEW DECISION ITEMS NEW DECISION ITEMGR FED & OTHER TOTALFTE Increased DMH Facility and Community Medication Costs (same as DSS 5.83% pharmacy inflation) $1,133,020 Overtime Cost-to-Continue (two state holidays cut from FY 2011 budget but necessary legislation did not pass) $1,123.688$1,123,688 Sexual Offender Rehabilitation & Treatment Services (SORTS) Cost- to-Continue $1,384,046 33.05 SORTS Fulton Expansion$1,596,674 34.98 ADA Tobacco Prevention Grant$388,743 10

11. FY 2012 NEW DECISION ITEMS NEW DECISION ITEMGR FED & OTHER TOTALFTE ADA and Lafayette County Children’s Tax Partnership $136,649 Additional Legal Counsel for Eastern Region $62,000 1.00 CPS Additional Local Tax Match Authority from Lincoln County $136,649 Federal Transfer Authority to GR (One-Time Funds, Non-Count) $1,256,854 Medicaid FFP Rate Adjustment (State Share 36.405% to 36.59%) $1,116,129$32,080$1,148,209 TOTAL NEW DECISION ITEMS $27,217,508$65,415,365$92,632,873851.77 11

12. FY 2011 – FY 2012 BUDGET COMPARISON GENERAL REVENUEFEDERALOTHERTOTALFTE $562,326,162 $633,713,469$42,948,339$1,238,987,9707,441.49 12 FY 2011 FY 2012 GENERAL REVENUEFEDERALOTHERTOTALFTE $575,426,388 $578,775,972$44,827,524$1,199,029,8847,873.94