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Legislative Update: First Session of 108th Congress Adjourns with Little Achieved

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December 19, 2003-The 108th Congress adjourned its first session accomplishing little for people with mental disabilities. Longstanding mental health bills (the Family Opportunity Act, mental health parity) and the renewal of laws affecting individuals with mental disabilities (TANF, IDEA) fell by the wayside this year. The Senate also failed to approve a year-end mandatory spending bill that includes funding for community-based mental health services and programs.

Some members of Congress have expressed optimism about passage of some of these proposals next year. However, it remains to be seen what can be accomplished in an election year.

In this issue:

Public Mental Health Services Funded Modestly

The President's Commission on Mental Health highlighted consumer-driven services and recovery in its report, but did not urge the increased federal funding for public mental health programs essential to realize these reforms. Advocates are disappointed that Congress largely failed to increase funding for programs and services administered by the Substance Abuse and Mental Health Services Administration's (SAMHSA) Center for Mental Health Services (CMHS) above the budget the President submitted last February. However, Congress did opt to maintain or increase grant funding in some programs the Administration
had proposed to freeze or cut.

This trend was evident in most of the grants in CMHS' discretionary budget (Programs of Regional and National Significance), including the jail-diversion program, post-traumatic stress program, seniors mental health program, and consumer-run technical assistance centers.

  • The jail diversion program will receive $7 million, a $1-million increase over the President's level funding. Funds help communities develop programs to divert mentally ill offenders from the criminal justice system into community-based mental health treatment. Funding for the program has steadily increased in the last three fiscal years ($4 million in FY 2002, $6 million in FY 2003 and $7 million in FY 2004). The
    Bazelon Center and other mental health advocates hope to expand the program further next year when Congress is scheduled to reauthorize SAMHSA programs and services.
  • The post-traumatic stress disorders program escaped the Administration's proposed $10 million cut and will remain funded at $30 million.
  • The seniors mental health program will be level-funded at $5 million.
  • The consumer-run technical assistance centers will receive $2 million, despite the Administration's attempts to eliminate the centers' funding.

Some Programs Are Increased

The grant program to assist individuals who are homeless or at risk of being homeless (PATH) will receive the largest increase ($6.7 million) of all CMHS programs, followed by the children's mental health program, which was increased by $3.9 million. The legal assistance program for individuals with mental disorders
administered by the protection and advocacy systems will increase by $1 million over the FY 2003 level.

Congress Shrinks Cuts

Although the mental health block grant and the CMHS discretionary budget were slated for cuts by the
Administration, Congress called for smaller reductions.

  • The mental health block grant will be reduced by $2.4 million rather than the $4.1 million proposed by the Administration.
  • The discretionary budget (PRNS) will be cut by $3.6 million rather than $32.7 million.

New Funding for Substance Abuse Treatment

Although the substance abuse block grant has typically received large increases, the discretionary budget at SAMHSA's Centers for Substance Abuse Treatment (CSAT) will receive the largest increase (over $100 million) in fiscal year 2004.

This new funding is for a drug and alcohol treatment voucher program, including faith-based programs. It will serve as a competitive grant, allowing states flexibility to customize programs based on the initiative's principles and policies.

States may contract entirely with private entities and accountability will be linked to a demonstration of treatment effectiveness.

Senate Will Consider Overall Spending Next Year

Although the Senate has yet to approve the Omnibus Appropriations Act of Fiscal Year 2004, (H.R. 2673) the funding levels in the conference report will not likely change for public mental health services (see chart). The Senate is expected to resume consideration of the omnibus bill when it reconvenes on January 20, 2003. For the moment, programs will remain funded at fiscal year 2003 levels, under a resolution
set to expire on January 31, 2004.

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TANF Renewal Held Over

Congress once again failed to reauthorize the 1996 welfare law, which created the Temporary Assistance for Needy Families (TANF) program. Current law was extended until March 31, 2004, giving Congress more time to complete a bill.

A report last year by the General Accounting Office (GAO) highlighted the challenges faced by many TANF recipients with disabilities. It found that families with disabilities (physical or mental) were half as likely to leave the TANF rolls as recipients without disabilities. Similarly, families caring for children with disabilities were less than half as likely to leave the rolls. Renewal of the law must recognize the barriers faced by this population and include provisions to assist such recipients in successful transition to work.

Instead, the renewal bill quickly passed by the House was similar to last year's House bill, mirroring the
Administration's proposal. It would undermine state flexibility in giving TANF recipients with disabilities access to assistance in finding and maintaining employment. It also has stricter work requirements that could lead to unfair sanctions for these recipients.

The Senate version, the Pathways to Independence Act (S. 1523), was approved by committee, but did not come up for a floor vote. Sponsored by Senators Gordon Smith (R-OR), Jim Jeffords (I-VT) and Kent Conrad (D-ND), the bill would help families care for children or adult relatives with disabilities. It
would also allow states to provide assistance to TANF recipients with disabilities who need mental health or
substance abuse treatment beyond six months, as long as they also engage in some work activity. Disability advocates will continue to build support for this important legislation next year in hopes of influencing both the Senate debate and a final TANF bill.

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Mental Health Parity Extended

Legislation to provide full parity between mental health and medical/surgical care stalled again. However, passage will remain a high priority next year. In fact, prior to adjournment, Senate sponsors were able to
secure a commitment from the Republican leadership to bring parity up as one of the first bills on the Senate floor in the new session. Until then, existing law has been extended until December 31, 2004.

The Senator Paul Wellstone Mental Health Equitable Treatment Act (S. 486, H.R. 953) is cosponsored by
Senators Pete Domenici (R-NM) and Edward Kennedy (D-MA) and Representatives Jim Ramstad (R-MN) and Patrick Kennedy (D-RI). It builds on the 1996 Parity Act that requires equal lifetime
and annual financial limits.

The new legislation would require parity for plans sponsored by employers with more than 50 employees who already provide mental health benefits. It expands the 1996 law to prohibit limits on outpatient sessions, inpatient days, co-payments, deductibles and maximum out-of-pocket expenses that are different from limits imposed on other care.

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Family Opportunity Act Stalls

Congress again failed to enact legislation to expand Medicaid coverage to include more children with severe emotional disturbance, which would reduce families' need to relinquish custody to access mental health service for their child. The Family Opportunity Act (S. 622, H.R. 1811) is sponsored by
Senators Charles Grassley (R-IA) and Edward Kennedy (D-MA) and Representatives Pete Sessions (R-TX) and Henry Waxman (D-CA).

The bill would allow families to "buy in" to Medicaid on a sliding scale to cover a child who meets the SSI definition of disability. A family with access to employer-sponsored health care that contributes at least 50% of the premium must elect this coverage and use these benefits first. The child's Medicaid coverage would then supplement the private health insurance policy.

The Family Opportunity Act also provides a needed fix toMedicaid's home- and community-based waiver to allow children with serious emotional disturbance who are at risk of being placed in a residential treatment center or who are currently receiving services in such a center to access services under the waiver. (Only children in or at risk of placement in a hospital are now eligible for services under the waiver.) This provision is also included in the recently introduced Keeping Families Together Act (S. 1704, H.R. 3243).

The Senate committee approved its version of the bill, but the House failed to act this year. It will remain a priority for the sponsors and for advocates next year.

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Keeping Families Together

In October, Senators Susan Collins (R-ME), Mark Pryor (D-AR), Norm Coleman (R-MN) and Jeff
Bingaman (D-NM) and Representatives Jim Ramstad (R-MN), Patrick Kennedy (D-RI), Pete Stark (D-CA), Charlie Norwood (R-GA), Spencer Bachus (R-AL), Charles Pickering (R-MS), Mike Castle
(R-DE) and Nancy Johnson (R-CT) introduced legislation to address the custody-relinquishment problem. Enactment is a high priority for mental health and child welfare advocates.

The Keeping Families Together Act (S. 1704 and H.R. 3243) would promote comprehensive interagency systems of care for children with mental or emotional disorders by providing six-year " Family Support Grants" to help states build new state-level infrastructure. It will also establish a new federal interagency task force to examine mental health issues in the child welfare and juvenile justice systems. The bill would require states to report annually on the success of the programs and activities and the Department of Health and Human Services to provide a report to Congress evaluating states' success in addressing custody relinquishment.

The legislation would authorize $4.5 million for FY 2004, $6.5 million for FY 2005, and $11 million for each fiscal year from 2006 to 2009. The federal task force would be authorized at $1 million for each fiscal year from 2004 to 2009.

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IDEA Reauthorization Carries Into Next Year

Congress adjourned without completing reauthorization of the Individuals with Disabilities Education Act (IDEA).

The Senate had been poised for floor debate, but the bill slipped into next year. The Senate bill (S. 1248), while not as protective of students' rights as current law in situations involving discipline, is still much stronger than the House-passed bill. It encourages the use of positive behavioral supports to help students with behavior problems and would require schools to determine whether the offending behavior was a manifestation of the child's disability before suspending or expelling the child. This process would investigate whether a violation of the school's conduct code was the result of the child's disability or the school's failure to implement the child's individualized education plan (IEP) or to use appropriate behavioral interventions.

In contrast, the House-passed version (H.R. 1350) would dramatically alter the IDEA's current discipline standards, allowing schools to expel children with disabilities at will if they violate the "school's code of conduct." This bill would seriously impair the ability of many students with disabilities to succeed in school.

Advocates will continue to push for a final bill that protects students with disabilities from inappropriate exclusion from classroom or school. In the meantime, the Bazelon Center will
support continuation of current law.

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  Judge David L. Bazelon Center for Mental Health Law
1101 15th Street, NW, Suite 1212
Washington, DC 20005

Phone: 202-467-5730
Fax: 202-223-0409
Email: webmaster@bazelon.org

 
Judge David L. Bazelon Center for Mental Health Law
1101 15th Street, NW, Suite 1212
Washington, DC 20005

Phone: 202-467-5730
Fax: 202-223-0409
Email: webmaster@bazelon.org