Guinn’s order could hit some agencies hard

Monday, Aug. 26, 2002 | 10:34 a.m.

CARSON CITY -- Gov. Kenny Guinn's order to state agencies to cut 3 percent of their budgets could mean a financial hit of up to 6 percent in some areas, such as mental health and handicapped services.

Carlos Brandenburg, administrator of the state Division of Mental Health and Developmental Disabilities, says the loss of state funds will likely mean an equal or greater loss of matching federal grant money.

Agencies must submit plans to cut their budgets by 3 percent this fiscal year by Sept. 5. The cuts were ordered after state taxes came in below expectations.

Brandenburg told the state Commission on Mental Health and Development Services on Friday that the developmental disabilities program receives a major share of its money from the federal government. Without the matching state money, it would not be able to take advantage of the federal funds, he said.

"The state is in a major fiscal deficit. The revenues are not coming in," Brandenburg said.

"Light a candle and say some prayers for us," he told the commission.

Ed Cotton, director of the state Division of Child and Family Services, said the 3 percent doesn't sound like much, but its impact could be "draconian." His agency could suffer a reduction of $2.1 million in state funds, and possibly more in matching federal funds.

Cotton said cutting one program might cause a burden for another. For instance, he said, reducing mental health spending for children might result in a higher number of cases for the juvenile justice system.

The 2001 Legislature authorized upgraded services for 327 severely emotional disturbed children under Cotton's agency. It started a pilot program for 32 of them, and Cotton said the division will start phasing in the rest of the children in January rather than in November as a measure to save money.

"We're not eliminating it," Cotton said. "We're spreading it out more."

The state put in $1.4 million and the federal government chipped in $1 million, according to legislative documents.

Brandenburg said the 3 percent cut comes after the agency already has saved money from a hiring freeze and the elimination of some "one-shot" spending.

The mental health division has a $143.4 million budget for the fiscal year that started July 1, of which $94.7 million comes from the state general fund. The budget for Child and Family Services for this year is $153.3 million, with $71.8 million coming from the general fund.

Brandenburg said final decisions have not been made yet on what will be chopped. He said his recommendations must be presented to State Human Resources Director Mike Willden, who will make the final agency decision.

Brandenburg and Cotton both said that their budgets for the 2003-05 biennium, which will be submitted to Guinn and considered in the 2003 Legislature, have included enhancements.

In other action, the commission authorized the mental health division to devise a contingency plan in case the suicide hotline program in Clark County shuts down.

Commissioner Dr. Nora Rena of Las Vegas said there was a danger that the Clark County system could be closed because of a lack of money. She urged -- and the commission agreed -- that the state should be ready to take over the calls from people threatening suicide.

Rena said the problem facing the crisis center in Clark County is that it has only volunteer staff.

"No foundation or donor will give money," she said. "There is no way of tracking the funds."

The state already operates its own suicide hotline, a toll-free number based in Reno.

The commission was also told the Desert Willow Treatment Center in Las Vegas has received a three-year accreditation from the Joint Commission for Accreditation of Hospitals.

Desert Willow is a hospital for the treatment of severely and emotionally disturbed children.