1. 10/22/2015Joint Committee Meeting1 March 23, 2011

2. 10/22/2015Joint Committee Meeting2 State Budget Concepts FY 12-13 In Summary: –Budget addresses $8B deficit without raising taxes –Of 59 state agencies, 44 saw decreases, 7 were flat funded and 8 saw increases, and one new agency was created (Office of Health Transformation)

3. 10/22/2015Joint Committee Meeting3 State Budget Concepts Cont. –Budget Elevates MCD match responsibility to the state. Boards will continue admin function in FY 12 In FY 13 full integration of MCD into ODJFS. MCD match in FY 12 will come from the Boards’ state allocation. MCD match in FY 13 will come from the state line item 525.

4. 10/22/2015Joint Committee Meeting4 State Budget Concepts Cont. Traditional line items have been re-aligned,created and in some areas eliminated (i.e. 408) State funding for Non-MCD, at the state level remains small The departments have not touched local levy funds, however significant reductions to tangible personal property tax replacement fund (TPP) will impact levies

5. 10/22/2015Joint Committee Meeting5 Evaluation Board Association lobbied for a three step platform 1.Elevate MCD and fund through line item 525 2.Fully fund state line items (505,408, and 401) 3.Hold levy funds harmless

6. 10/22/2015Joint Committee Meeting6 How did we fare? MCD will be elevated beginning FY 12 and match will come from line item 525 in FY 13 The departments show a net gain in GRF but: Line items have been altered Allocation methodologies appear to shift from per capita to utilization

7. 10/22/2015Joint Committee Meeting7 How did we fare? Cont. Reduction in TPP/Commercial Activity Tax negatively impact levies –Both departments now acknowledge implications

8. 10/22/2015Joint Committee Meeting8 Language and Policy Budget Language not yet published, but expected in 2 weeks.

9. 10/22/2015Joint Committee Meeting9 What do we know: Mental Health Emphasis- direct service to individuals with Severely Mental Ill Continued Department operation of Six Psychiatric Hospitals Continue Medication subsidy at a lower allocation due to generics GRF non-MCD subsidy for local priorities

10. 10/22/2015Joint Committee Meeting10 Major Reforms MCD responsibility is shifted to state level (funding and management) FY 12 MCD cost containment strategies based on data MCD benefit package in FY 13 –Service utilization will be limited –Payment modifications beginning July 1, 2011 (Scope, Cost and Duration)

11. 10/22/2015Joint Committee Meeting11 Major Reforms Cont. –Children entitled to all medically necessary services per MCD - Early and Periodic Screening, Diagnosis and Treatment (EPSDT) –Treatment services outcome measures –Physical/Behavioral Health integration –Care Coordination by Office of Health Transformation September 2012

12. 10/22/2015Joint Committee Meeting12 Major Reforms Cont. Core Focus Populations: MCD/Medicare dual enrollees and individuals with Severely Persistent Mentally Ill (SPMI) (MCD redesign FY 13) Hospital, MCD and Non-MCD new line items Block grant reformed to emphasized direct services.

13. 10/22/2015Joint Committee Meeting13 Major Reforms Cont. Funding Proposal FY 12/13 –Line item eliminated and created –KG –Departments will allocate sufficient dollars to meet Boards MCD obligation (MACSIS utilization trend) plus 8% growth –MCD Allocation will include cost containment rules and focus on high priority areas

14. 10/22/2015Joint Committee Meeting14 Major Reforms Cont. Boards to process MCD as in the past for FY 12 but Department will impose a reconciliation policy Boards will be held harmless for MCD match i.e., levy, non-MCD funds and block grant ODJFS to pay providers MCD in FY 13

15. 10/22/2015Joint Committee Meeting15 Major Reforms Cont. Hospital line item 412 (NEW) –Civil & forensic –The Boards allocation of funds from 412 are to purchase hospital beds or alternate services –Department may opt for a pay as you go method on 412 funds or quarterly allocation with reconciliation –Department will push for regional planning of bed days

16. 10/22/2015Joint Committee Meeting16 Major Reforms Cont. Community Service 505 –Focus on Non-MCD services –Allocation designed to bring each Board as close to FY 11 Non-MCD GRF –Priority setting for these funds up to Board

17. 10/22/2015Joint Committee Meeting17 Major Reforms Cont. Departments will encourage these services: –Emergency service and crisis intervention –Housing –Children's Services –Consumer returning to Community from Hospital

18. 10/22/2015Joint Committee Meeting18 What do we know- ODADAS MCD elevation - same related issues as ODMH e.g., Cost Controls and Utilization Management Revised Non-MCD allocation procedures for FY 13 Emphasis on the department and RSC State Wide Project. Top Priority is the Opiate Addicted

19. 10/22/2015Joint Committee Meeting19 What do we know-ODADAS Cont. Other Priorities: Young Adults with dual diagnosis Severally Mentally Ill Offender re-entering communities Vets Driver Intervention Program Offenders MUST pay ½ of cost

20. 10/22/2015Joint Committee Meeting20 ODADAS Funding

21. 10/22/2015Joint Committee Meeting21 ODMH Funding

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23. 10/22/2015Joint Committee Meeting23

24. 10/22/2015Joint Committee Meeting24

25. 10/22/2015Joint Committee Meeting25 Tangible Personal Property Tax Replacement While more language and details will need to follow, the initial news is not good. Boards and other local governments have been held harmless from the loss of tangible personal property taxes as a result of tax reform. Two state revenue distribution funds (see details below) and a transfer of GRF have been used to hold local governments harmless. The Administration proposes to redirect CAT revenues and kilowatt hour tax to the GRF, thus reducing funds to reimburse local governments. The Local Government TPP Replacement Fund (Fund 7081) has traditionally received funds from Commercial Activity Tax to help replace revenue to local governments. SFY '11SFY '12SFY '13 $414,000,000$291,000,000$181,000,000 -30%-38%

26. 10/22/2015Joint Committee Meeting26 Fund 7054 is used to reimburse local governments for property tax revenue lost due to reductions in 2001 in assessment rates on tangible property owned by electric and natural gas utilities. SFY '11SFY '12SFY `13 $90,000,000$16,000,000$11,000,000 -82%-31%

27. 10/22/2015Joint Committee Meeting27 Property Tax Rollback Reimbursement (110901) This line item is used to reimburse local governments other than school districts for losses incurred as a result of the 10% and 2.5% "rollback" reductions in real and manufactured home property taxes and as a result of the "homestead exemption" reductions in taxes. SFY '11SFY '12SFY '13 $592,463,014$610,900,000$616,000,000 +3% +1%

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29. FY12 Tasks & Timeframe

30. Task Categories FY12 New Services –Description of need, service, outcomes, costs –E.g., Hospital Liaison, behavioral health/criminal justice integration FY12 Outcomes –Measurements, frequency, and reporting –Contract language/costs FY12 Board Budget (admin/special projects) F12 Service purchasing & System Budget –Usual and Customary Rates –New/expanded projects FY12 Contracts FY 12-13 Community Plan

31. April Transition Meetings FY 12 Provider Budget Development Work with Providers on usual and customary rate reductions New or enhanced programming Outcomes measurements implementation Provider and Board Staff priority list for Board review in May 10/22/2015Joint Committee Meeting31

32. April - Other Contracts –Conversation/advice from Molly Mack Termination needed? And if so, implications Outcomes language coming Length of contract term Data Reports –Costs, Utilization, Trends Community Plan work Hospital Utilization Management Bed day planning

33. April – Committees Program –Program changes for FY12 New programs, expansions, modifications –Outcomes measurement –State budget updates –Health Officer designation Finance –UCC reduction plan/proposals –Outcomes costs –State budget updates Executive –FY12 Contract Issues Discussion –FY12 Board Officers

34. Timeframe: Scheduled Meetings June Board Meeting – June 28 th –Exec 6/15 (third Wednesday) –Prog 6/13 (second Tuesday) –Fin 6/8 (second Wednesday) May Bd Mtg – May 23 –Exec 5/18 –Fin 5/11 –Prog 5/10 April Bd Mtg – April 25 –Exec 4/20 –Fin 4/13 –Prog 4/12 NOTE: Joint Meetings may be required

35. May Transition Meetings Unfinished business from April Community Plan Budget development/service purchasing 10/22/2015Joint Committee Meeting35

36. May - Other Finish Outcomes language with Outcomes workgroup Finish Contract with Molly Mack

37. May - Committees Program –Final report on agency proposals –Data reports –Community Plan –Health Officers Finance –FY12 Board Budget –Utilization Reports –Agency’s proposed FY12 Budgets –Community Plan Executive –Contract Work (term, outcomes, other) –Board Budget –Community Plan –Executive Director Contract Nominating –Board Appointments

38. June - Decisions Program –Recommendations to Board on Programming –Discussion/recommendations on Contracting language Finance –Recommendations on Board Budget –Including rental agreement System Budget –Executive Contract Recommendations Delegation of Authority recommendations