The Four County ADAMhs Board has received its final quarterly disbursement from the state for the fiscal year ending June 30 with no cuts. However, Rob Giesige, the CEO, tempered that good news for ADAMhs Board members during their May 14 virtual meeting with a warning that both state and local property tax revenue for the fiscal year that starts July 1 is still uncertain.
He explained that through April overall state revenue for the current fiscal year was some $866 million below what had been estimated. The bulk of that shortfall was cut from the final two months of state funding to school districts, higher education and state agencies. Funding for direct behavioral health services was spared, he said.
However, state income, sales and use taxes will likely continue to come in below estimates for some time because of the economic impact of the coronavirus situation. “We will not know how that will impact our state funding for awhile,” he told the board.
Additionally, the number of families impacted by lay-offs and furloughs will likely result in more than the usual number of property tax delinquencies in July, he explained. That will reduce the board’s property tax revenue later this summer when those distributions are made.
State funding and local property taxes make up nearly all of the ADAMhs board’s annual revenue with property taxes accounting for roughly $4 million a year or 59 percent of the board’s budget. State funding is about $2.7 million a year.
Last month, the ADAMhs Board approved most of next year’s service contracts totaling $5.2 million. It was noted at the time that the contracts assumed a similar level of state and local funding.
Giesige told the board that if state and local funding is significantly reduced, then the contracts will need to be adjusted to bring board spending in line with anticipated revenue.
He said that it would likely be July or August until he has a clear picture of how board revenue will be impacted for next year. And, depending on how long it takes the state’s economy to recover, the uncertainty could linger even longer.
Recently, the board has received some additional state and federal funding.
Some $62,179 in unspent state funding from the Northwest Ohio Regional Collaborative (a group created to fund inpatient mental health services for youth) was received by the board to be used for expenses related to the COVID-19 pandemic. The board approved a contract amendment with A Renewed Mind Behavioral Health to receive and administer those funds for COVID-19-related expenses across the behavioral health system.
The board also received $28,126 from the Substance Abuse and Mental Health Services Administration to be used for crisis services. The board authorized a contract amendment with A Renewed Mind Behavioral Health to receive those funds.