908 KAR 2:050.
Formula for allocation of funds.
RELATES TO: KRS
KRS 210.420, 210.450, EO 2004-726
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.
Definitions. (1) "Cabinet" means Cabinet.
(2) "Local tax
match" means revenue raised locally by a mental health/mental retardation
(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.
local match" means revenue raised locally by a mental health/mental
retardation board, but shall be limited to:
contributions other than those from a county fiscal court or city legislative
(b) Cash donations
(c) Sales of
(d) Interest income;
(e) Rental income;
(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
"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.
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
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.
(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
(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.)