908 KAR 2:050.

Formula for allocation of funds.

 

      RELATES TO: KRS

210.420, 210.440

      STATUTORY AUTHORITY:

KRS 210.420, 210.450, EO 2004-726

      NECESSITY, FUNCTION,

AND CONFORMITY: EO

2004-726, effective July 9, 2004, reorganized the Cabinet for Health Services

and placed the Department for Mental Health and Mental Retardation within the

cabinet. KRS 210.440 requires the secretary of the cabinet to

allocate funds to the mental health/mental retardation boards at the beginning

of each fiscal year. KRS 210.420 requires the Secretary to prescribe, by

administrative regulation, a formula for the allocation of these funds,

including provisions for per capita allocations, incentive allocations which

require local matching funds based on per capita wealth of the area served, and

discretionary allocations to be available to the secretary to maintain

essential services pursuant to KRS 210.410. This administrative regulation

prescribes the formula for allocation of these funds.

 

      Section 1.

Definitions. (1) "Cabinet" means Cabinet.

      (2) "Local tax

match" means revenue raised locally by a mental health/mental retardation

board from:

      (a) A mental

health/mental retardation tax (KRS 210.460, 210.470, 210.480); and

      (b) A county fiscal

court appropriation or an appropriation by a city legislative body, including

in-kind contributions at fair market value.

      (3) "Other

local match" means revenue raised locally by a mental health/mental

retardation board, but shall be limited to:

      (a) In-kind

contributions other than those from a county fiscal court or city legislative

body;

      (b) Cash donations

and contributions;

      (c) Sales of

workshop products;

      (d) Interest income;

      (e) Rental income;

and

      (f) Funds provided

by affiliates derived from the sources specified in this subsection, limited to

the extent that the funds shall be used to finance programs endorsed by the

board in its annual plan and budget.

      (4) "Per capita

wealth" means the current total assessed value of property, as adjusted

and recorded by the Kentucky Revenue Cabinet, divided by the population of a

given area.

      (5)

"Region" means that geographic locality determined by incorporation

for the purpose of delivery of comprehensive mental health/mental retardation

services under KRS 210.370 as controlled by a board of directors.

 

      Section 2.

Population. (1) Population figures used by the secretary to determine the

formula allocations shall come from the U.S. Department of Commerce, Bureau of

the Census, as reported in the most recent edition of the Urban Studies Center,

University of Louisville, Population Research Unit Report.

      (2) Any geographic

breakdown in population shall be in accordance with KRS 210.370.

 

      Section 3. Formula

for Allocation of State Appropriated Funds. The formula for allocation of state

appropriated funds shall be as follows:

      (1) Per capita

allocations. Of the total general funds appropriated by the General Assembly

for a fiscal year for the community mental health/mental retardation services

programs, fifteen (15) percent shall be distributed based on per capita

allocations. The sum available to each region shall be determined by dividing

the total funds available in the per capita allocation by the total population

of the Commonwealth, multiplied by the population of each region; provided,

however, that the payment of the sum shall be on a cost related fee for service

basis following receipt of appropriate and timely billings submitted by each

board.

      (2) Discretionary

allocations. The discretionary allocations available to the secretary to

maintain essential services pursuant to KRS 210.410 shall be equal to ten (10)

percent of the general funds appropriated by the General Assembly for a fiscal

year for community mental health/mental retardation programs.

      (3) Cost-related fee

for service allocations. Of the total general funds appropriated by the General

Assembly for a fiscal year for the community mental health/mental retardation

services program sixty (60) percent shall be allocated based on service units

reported in the board's annual plan and budget as approved by the secretary

including approved amendments; provided, however, payment shall be on a

cost-related fee for service basis following receipt of appropriate and timely

billings submitted by the board. If any board fails to report sufficient service

units to access its cost-related fee for service allocation, these funds shall

be reallocated on a cost-related fee for service basis to those regions whose

reported service units exceed their allocation.

      (4) Incentive

allocations.

      (a) Of the total general

funds appropriated for community mental health/mental retardation programs,

fifteen (15) percent shall be allocated to the regions based on local tax match

and other local match weighted to reflect the per capita wealth of the region.

Local tax match and other local match shall be based upon the preceding fiscal

year's local collections as determined by the independent auditor of each board

and certified by the cabinet.

      (b) The cabinet

shall adjust the local tax match revenue and other local match revenue by

applying a per capita wealth adjustment factor. The adjustment factor shall be

computed by dividing the per capita wealth of the state by the per capita

wealth of a region.

      (c) The matching

rates shall be thirty-five (35) cents for each dollar of local tax match after

per capita adjustment and fifteen (15) cents for each dollar of other local

funds after per capita wealth adjustment. The preceding totals shall equal the

total state funds earned by each board under the incentive allocation provided

there are sufficient funds appropriated and allocated to the incentive

allocation.

      (d) An initial

incentive ceiling shall be calculated for each board by dividing the local

incentive funds available (fifteen (15) percent of the total general funds appropriated)

by the population of the state, multiplied by the population of each region. If

one (1) or more boards fails to report sufficient local tax match and other

local match funds to attain their ceiling, the amount they are under the

ceiling shall be returned to the incentive allocation for reallocation to

regions that exceeded their ceiling. If through this method all incentive funds

cannot be allocated, the remaining funds shall be placed in the cost-related

fee for service fund to be allocated on a cost-related fee for service basis.

      (e) Incentive funds

shall be adjusted following the receipt of actual collections for the previous

fiscal year. The report of actual collections shall be submitted by the

independent auditor in conjunction with each annual audit report of each board.

(Recodified from 902 KAR 6:050, 3-7-89; Am. 20 Ky.R. 2261; eff. 3-14-94.)