Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
210.420,
210.440
NECESSITY, FUNCTION, AND CONFORMITY: EO 2004-726, effective
July 9, 2004, reorganized the Cabinet for Health and Family Services and placed
the Department for Behavioral Health, Developmental and Intellectual
Disabilities within the cabinet.
KRS
210.440 requires the secretary of the cabinet
to allocate funds to the behavioral health, developmental and intellectual
disabilities 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 behavioral health, developmental and intellectual disabilities
board from:
(a) A behavioral health,
developmental and intellectual disabilities 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 behavioral health, developmental and intellectual disabilities
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
Department of Revenue, divided by the population of a given area.
(5) "Region" means that geographic locality
determined by incorporation for the purpose of delivery of comprehensive
behavioral health, developmental and intellectual disabilities 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 behavioral health, developmental and
intellectual disabilities 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 behavioral health, developmental and intellectual disabilities
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 behavioral health, developmental
and intellectual disabilities 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 behavioral health, developmental and intellectual
disabilities 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.
STATUTORY AUTHORITY:
KRS
210.420,
210.450,
EO 2004-726