California Department of Alcohol and Drug Program
Fiscal Year 2007-08 Governor's Budget (Preliminary) Allocation, 1.0


This bulletin transmits the Fiscal Year (FY) 2007-08 Governor's Budget (Preliminary Budget) Allocation to counties for informational and planning purposes. The enclosed allocation of funds is contigent upon enactment of the FY 2007-08 Budget Act, federal appropriations, and executed State/County contracts. After the FY 2007-08 Budget is enacted, a final notice will be sent to reflect any adjustments.

This bulletin includes five exhibits: (A) Overview of Program, Funding, and Allocation Methodologies, (B) Statewide Allocation Summary, (C) Substance Abuse Prevention and Treatment (SAPT) Block Grant Fund Pilot Exchange Program, (D) Funding Periods Chart, and (E) Statewide Allocation Worksheet.

DISCUSSION

Significant changes pertaining to the Governor's Proposed (Preliminary) FY 2007-08 Budget and allocation are:

State General fund (SGF)
The Preliminary Budget Allocation provides $108.9 million in total SGF funds. Of this amount, $79.7 million is designated for Drug Medi-Cal (DMC) services. The Department of Alcohol and Drug Programs (ADP) has budget authority to allocate a maximum of $75.3 million for Regular DMC and $4.4 million for Perinatal DMC servies from SGF.

SAPT Block Grant Discretionary, Perinatal and Substance Abuse Treatment and Testing Accountability (SATTA) funds
The preliminary allocation reflects the ongoing SAPT Block Grant reductions from all SAPT funding sources except for the Perinatal Set-Aside and SATTA funds. The allocation provides $132,591,163 in SAPT Discretionary Ongoing funds, $17,054,000 in SAPT Perinatal Set-Aside funds, and $8.6 million in SAPT SATTA funds.

SAPT Human Immunodeficiency Virus (HIV) Set-Aside
The Department has adopted a needs-based HIV allocation methodology for FY 2007-08. The new methodology is based on the following needs factors: living AIDS cases, counseling and testing prevalence, population with sexually transmitted disease, population in poverty, and people of color in general population. SAPT HIV funds are no longer part of the SAPT pilot exchange funds. The overall statewide amount of the SAPT HIV funds remains at $12,501,926.

ADP's SAPT Pilot Exchange Program
FY 2006-07 was the third year of a three-yer pilot allocation policy for SAPT Block Grant funds. ADP allowed counties to exchange SAPT categorical funds (HIV Set-Aside, Perinatal Set-Aside, and Adolescent and Youth Treatment) from very small Minimum Base Allocation counties (populations less than 40,000) with equal amounts of SAPT Discretionary funds from the remaining counties (populations of 40,000 or greater). The purpose was to provide the smallest counties with greater flexibility to meet the needs of their clients. The Pilot Exchange Program will continue for an additional year while an analysis of the impact and benefits can be studied. Since the new HIV allocation is based on need, it will be excluded from the Pilot Exchange Program.

READ FULL ADP ISSUE 07-02

___________________________________________________________________