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Contact: William Emmet, 703-739-9333

President's FY 2006 Budget at a Glance

Washington, DC (Feb. 8, 2005)—Below is a preliminary analysis of the Administration’s proposed funding for some key programs that are important to Americans with mental illnesses.

The Good

Millions in Spending Requested for Youth Suicide Prevention
The President's budget calls for $11.5 million in funding to implement the Garrett Lee Smith Act, legislation Congress adopted last year to reduce the number of young people who commit suicide. Suicide is the third leading cause of death among young Americans.

Administration Invests Significant Resources to End Chronic Homelessness
The Administration proposes to quadruple funding (to $200 million) for the Samaritan Housing Initiative above the FY 2005 request and increase total anti-homelessness assistance to $1.4 billion (a 16% increase).

Funds for State Incentive Grants (SIGs) Increased
The budget includes a $6 million increase in the State Incentive Grants for Transformation (SIGs) above what Congress approved last year for the grants. The budget request for SIGs, intended to help states shore up the tattered safety net for people with mental illnesses, is $18 million less than the President proposed last year.

Funds Maintained for Technical Assistance Centers Previously Selected for Elimination
The Administration’s budget maintains funding (roughly $2 million) for consumer technical assistance centers – which support self-help, peer-to-peer support, and promote the principles of community integration – after proposing eliminations of the centers in previous budget proposals.

Administration Earmarks Dollars for New Prisoner Reentry Initiatives
The President's budget earmarks $75 million for a new prisoner re-entry initiative, $15 million of which would go to the Department of Justice, with the remainder of which would going to the Department of Labor and the Department of Housing and Urban Development. It is unclear how much the initiative will be do to arrest the cycle of recidivism among ex-offenders with mental illnesses.

The Bad and the Ugly

Access to Services

Medicaid – Primary Source of Mental Health Funding – Faces Most Serious Threat
Medicaid is slated for $60 billion in cuts over 10 years and major structural changes that could drastically reduce access to critical services for Americans with mental illnesses who rely on the program. Medicaid is the largest public funder of mental health services.

Funding Inadequate to Patch Holes in the Community-Based Mental Health System
The proposed budget slashes the Center for Mental Health Services’ (CMHS) discretionary budget by $64 million, jeopardizing many programs for adults and children with mental disorders. The budget also freezes funding for many important community-based mental health services under CMHS. Programs affected include:

  • The mental health block grant that provides mental health services and supports to children and adults with mental health disorders in their community;
  • The children's comprehensive mental health program that supports the development of interagency systems of care for youth;
  • PATH, which provides services to individuals with mental illnesses who are homeless or at risk of homelessness; and
  • Protection and advocacy services to help people who have mental illnesses to better understand and assert their rights.

Children & Families

Special Education Funding Shortchanges Kids with Disabilities
The budget proposes $11.1 billion for the Individuals with Disabilities Education (IDEA) Act Part B Grants to states, well-short of what has been authorized to help schools and states implement the special education services required by the IDEA .

Veterans

Veterans Services May Deteriorate
Proposed increases for Veterans Administration (VA) medical services are illusory, at best. Funding increases are based on speculative revenue sources, including deceptive "management efficiencies" of $430 million, payments from veterans ($424 million) based on legislation Congress is likely to reject, and vastly inflated projections of third-party collections. The budget also proposes cutting VA's health care staffing – by more than 3,700 employees – at a time of war and mounting casualties. With what amounts to flat-funding (in the face of rising medical care inflation), the VA's FY 06 budget is a recipe for a deterioration in timeliness, access, and even quality of care – especially for veterans with mental health problems.

Employment

Workplace Supports Cut or Flat-Lined
The Administration’s budget would eliminate important assistance to individuals with mental illness in the workplace that has, until now, been offered through the federal supported employment program (previously funded at $37.4 million via the Department of Education) and provide no funding for several other important programs. Funding has also been reduced for services and supports available through the Department of Labor that assist individuals with disabilities in rehabilitation. The Work Incentives Grants to help individuals with disabilities gain employment is level funded at $19.7 million.

Housing

Radical Restructuring of Flagship Housing Program Threatens People with Disabilities
The Administration’s proposal to block grant the U.S. Department of Housing and Urban Development’s (HUD) Section 8 program, which provides housing to millions of individuals and families, threatens rental subsidies for people with disabilities and would increase overall affordability problems.

Section 811 Housing Funds Cut in Half
The Administration would cut Section 811, which provides new housing units to people with disabilities who need support to live successfully in the community, in half from FY 2005 levels ($238 million to $120 million).

Fair Housing Enforcement Funds Cut
The budget would reduce funds to support fair housing enforcement by more than 20%, hampering enforcement efforts and allowing discrimination against people with disabilities to persist. Complaints of disability discrimination comprise the largest number of complaints filed with HUD and state and local fair housing enforcement agencies.

Criminal and Juvenile Justice Programs

New Program to Address Criminal Justice Crisis Lacks Funds
The recently enacted Mentally Ill Offender Treatment and Crime Reduction Act, bipartisan legislation to address the high numbers of people with mental illnesses who are flooding the criminal and juvenile justice systems, receives no funds under the President’s budget. This law authorizes funding for states and communities to use for jail diversion, community re-entry, correctional mental health treatment, and cross training of law enforcement, corrections and mental health personnel.

Jail Diversion and Community Re-entry Initiatives Lose Funding
The Administration proposes eliminating Byrne Discretionary Grants, an important source of funding to help states finance a number of jail diversion and community re-entry initiatives, crisis intervention programs and mental health courts targeted for youth and adults with mental or emotional disorders.

Deep Cuts for Juvenile Justice Programs
The Administration proposes deep cuts in funding for several juvenile justice programs. Total funding for these programs would be reduced by 46% from FY 2005. The Juvenile Accountability Block Grant would be eliminated and funding for the Juvenile Justice and Delinquency Prevention Act would be reduced.


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The Campaign for Mental Health Reform has been organized as the mental health community’s united voice on federal policy. Its goal is to make access, recovery, and quality in mental health services the hallmarks of our nation’s mental health system. For more information, see www.mhreform.org.

Campaign for Mental Health Reform: American Psychiatric Association * American Psychological Association * CHADD - Children and Adults with Attention-Deficit/Hyperactivity Disorder * Depression and Bipolar Support Alliance (DBSA) * Federation of Families for Children's Mental Health (FFCMH) * International Association of Psychosocial Rehabilitation Services (IAPSRS) * Judge David L. Bazelon Center for Mental Health Law * National Alliance for the Mentally Ill (NAMI) * National Association of County Behavioral Health Directors (NACBHD) * National Association of State Mental Health Program Directors (NASMHPD) * National Council for Community Behavioral Healthcare (NCCBH) * National Empowerment Center (NEC) * National Mental Health Association (NMHA) * National Mental Health Consumers' Self-Help Clearinghouse * Suicide Prevention Action Network USA (SPANUSA)

Girl (Photo: I-stockphoto.com)

President's FY 2006 Budget at a Glance

©2003 Campaign for Mental Health Reform