* 1999-00 through 2001-02 reflect enacted appropriations.
* 2002-03 and 2003-04 reflect Executive recommended appropriations.

The Office of Alcoholism and Substance Abuse Services (OASAS) administers a statewide system of chemical abuse prevention, early intervention and treatment services provided in various inpatient and outpatient settings. Each day, approximately 114,000 persons receive chemical abuse treatment services from over 1,300 agencies across the State that are licensed and regulated by OASAS. In addition to its licensing and regulation functions, OASAS is responsible for providing leadership and advocacy in the field of chemical dependency. OASAS continues the process of forging a single, consolidated and coordinated chemical dependency treatment system out of what had been two separate alcohol and substance abuse treatment and prevention systems. With implementation of a consolidated chemical dependency fee for Medical Assistance payments, OASAS consolidation nears completion. OASAS is awaiting approval of a Medical Assistance fee structure for community-based detoxification services before expanding availability of the services statewide.

For State Fiscal Year (SFY) 2003-04, the Executive requests funding to support 951 full-time equivalent (FTE) staff positions to provide oversight and technical assistance to community-based service providers, as well as to provide direct care services at the 13 State-operated Addiction Treatment Centers (ATC) located statewide. The ATCs annually provide inpatient services to pproximately 7,000 persons who require intermediate-term care after completing a more intensive acute care treatment phase, provided in community hospitals. The Executive projects no change in staffing levels at the ATCs.

This agency is included in the Health and Mental Hygiene appropriation bill.

State Operations

The Executive proposes an All Funds appropriation of $76,525,000, a net increase of $2,519,000, or 3.4 percent. This increase results from negotiated salary increases, the OASAS share of costs for maintenance services at ATCs that are located on the grounds of State psychiatric centers, and the expected cost associated with relocation of OASAS' central offices. Those costs are offset by savings from the elimination of 28 central office FTE positions and nonpersonal service efficiencies.

Aid To Localities

The Executive proposes an All Funds appropriation of $394,377,000, a net decrease of $9,094,600, or 2.3 percent. The Executive recommends General Fund increases of $6,674,000 to fully annualize a three percent cost of living adjustment provided in the SFY 2002-03 budget, and $3,702,000 to reflect the impact of a 53rd Medicaid cycle and the operational cost of new residential development. The Governor proposes General Fund savings of $6,200,000 through the implementation of strict contract performance standards; of $3,872,000 through a technical adjustment to reflect actual funding required for support of certain Treatment services; and of $1,300,000 from the elimination of legislative enhancements. The proposed budget also reflects a decrease in Special Revenue-Other Funds of $5,700,000, related to the shift of chemical dependence transition funding to re-appropriation status, and of $1,500,000, related to an appropriation adjustment in the Asset Forfeiture Account to reflect actual receipts.

Capital Projects

The Executive proposes an All Funds capital appropriation of $36,835,000, a net increase of $5,815,000, or 18.7 percent. Appropriations for capital improvements to voluntary operated community chemical dependence treatment facilities are increased by $8,272,000 while appropriations for the State-operated system are decreased by $2,500,000.

Article VII

The Executive proposes Article VII legislation to permit Article 28 hospitals to continue replacing State grant funds for chemical abuse treatment with federal Disproportionate Share payments through March 31, 2006.