1999 Minnesota Statutes

     254B.02 Chemical dependency allocation process. 

    Subdivision 1.    Chemical dependency treatment 
 allocation.  The chemical dependency funds appropriated for 
 allocation shall be placed in a special revenue account.  The 
 commissioner shall annually transfer funds from the chemical 
 dependency fund to pay for operation of the drug and alcohol 
 abuse normative evaluation system and to pay for all costs 
 incurred by adding two positions for licensing of chemical 
 dependency treatment and rehabilitation programs located in 
 hospitals for which funds are not otherwise appropriated.  For 
 each year of the biennium ending June 30, 1999, the commissioner 
 shall allocate funds to the American Indian chemical dependency 
 tribal account for treatment of American Indians by eligible 
 vendors under section 254B.05, equal to the amount allocated in 
 fiscal year 1997.  The commissioner shall annually divide the 
 money available in the chemical dependency fund that is not held 
 in reserve by counties from a previous allocation, or allocated 
 to the American Indian chemical dependency tribal account.  Six 
 percent of the remaining money must be reserved for the 
 nonreservation American Indian chemical dependency allocation 
 for treatment of American Indians by eligible vendors under 
 section 254B.05, subdivision 1.  The remainder of the money must 
 be allocated among the counties according to the following 
 formula, using state demographer data and other data sources 
 determined by the commissioner: 

    (a) For purposes of this formula, American Indians and 
 children under age 14 are subtracted from the population of each 
 county to determine the restricted population. 

    (b) The amount of chemical dependency fund expenditures for 
 entitled persons for services not covered by prepaid plans 
 governed by section 256B.69 in the previous year is divided by 
 the amount of chemical dependency fund expenditures for entitled 
 persons for all services to determine the proportion of exempt 
 service expenditures for each county. 

    (c) The prepaid plan months of eligibility is multiplied by 
 the proportion of exempt service expenditures to determine the 
 adjusted prepaid plan months of eligibility for each county. 

    (d) The adjusted prepaid plan months of eligibility is 
 added to the number of restricted population fee for service 
 months of eligibility for the Minnesota family investment 
 program, general assistance, and medical assistance and divided 
 by the county restricted population to determine county per 
 capita months of covered service eligibility. 

    (e) The number of adjusted prepaid plan months of 
 eligibility for the state is added to the number of fee for 
 service months of eligibility for the Minnesota family 
 investment program, general assistance, and medical assistance 
 for the state restricted population and divided by the state 
 restricted population to determine state per capita months of 
 covered service eligibility. 

    (f) The county per capita months of covered service 
 eligibility is divided by the state per capita months of covered 
 service eligibility to determine the county welfare caseload 
 factor. 

    (g) The median married couple income for the most recent 
 three-year period available for the state is divided by the 
 median married couple income for the same period for each county 
 to determine the income factor for each county. 

    (h) The county restricted population is multiplied by the 
 sum of the county welfare caseload factor and the county income 
 factor to determine the adjusted population. 

    (i) $15,000 shall be allocated to each county.  

    (j) The remaining funds shall be allocated proportional to 
 the county adjusted population. 

    Subd. 2.    County adjustment; maximum allocation.  The 
 commissioner shall determine the state money used by each county 
 in fiscal year 1986, using all state data sources.  If available 
 records do not provide specific chemical dependency expenditures 
 for every county, the commissioner shall determine the amount of 
 state money using estimates based on available data.  In state 
 fiscal year 1988, a county must not be allocated more than 150 
 percent of the state money spent by or on behalf of the county 
 in fiscal year 1986 for chemical dependency treatment services 
 eligible for payment under section 254B.05 but not including 
 expenditures made for persons eligible for placement under 
 section 254B.09, subdivision 6.  The allocation maximums must be 
 increased by 25 percent each year.  After fiscal year 1992, 
 there must be no allocation maximum.  The commissioner shall 
 reallocate the excess over the maximum to counties allocated 
 less than the fiscal year 1986 state money, using the following 
 process: 

    (a) The allocation is divided by 1986 state expenditures to 
 determine percentage of prior expenditure, and counties are 
 ranked by percentage of prior expenditure less expenditures for 
 persons eligible for placement under section 254B.09, 
 subdivision 6. 

    (b) The allocation of the lowest ranked county is raised to 
 the same percentage of prior expenditure as the second lowest 
 ranked county.  The allocation of these two counties is then 
 raised to the percentage of prior expenditures of the third 
 lowest ranked county. 

    (c) The operations under paragraph (b) are repeated with 
 each county by ranking until the money in excess of the 
 allocation maximum has been allocated. 

    Subd. 3.    Reserve account.  The commissioner shall 
 allocate money from the reserve account to counties that, during 
 the current fiscal year, have met or exceeded the base level of 
 expenditures for eligible chemical dependency services from 
 local money.  The commissioner shall establish the base level 
 for fiscal year 1988 as the amount of local money used for 
 eligible services in calendar year 1986.  In later years, the 
 base level must be increased in the same proportion as state 
 appropriations to implement Laws 1986, chapter 394, sections 8 
 to 20, are increased.  The base level must be decreased if the 
 fund balance from which allocations are made under section 
 254B.02, subdivision 1, is decreased in later years.  The local 
 match rate for the reserve account is the same rate as applied 
 to the initial allocation.  Reserve account payments must not be 
 included when calculating the county adjustments made according 
 to subdivision 2.  For counties providing medical assistance or 
 general assistance medical care through managed care plans on 
 January 1, 1996, the base year is fiscal year 1995.  For 
 counties beginning provision of managed care after January 1, 
 1996, the base year is the most recent fiscal year before 
 enrollment in managed care begins.  For counties providing 
 managed care, the base level will be increased or decreased in 
 proportion to changes in the fund balance from which allocations 
 are made under subdivision 2, but will be additionally increased 
 or decreased in proportion to the change in county adjusted 
 population made in subdivision 1, paragraphs (b) and (c). 

    Subd. 4.    Allocation spending limits.  Money allocated 
 according to subdivision 1 and section 254B.09, subdivision 4, 
 is available for payments for up to two years.  The commissioner 
 shall deduct payments from the most recent year allocation in 
 which money is available.  Allocations under this section that 
 are not used within two years must be reallocated to the reserve 
 account for payments under subdivision 3.  Allocations under 
 section 254B.09, subdivision 4, that are not used within two 
 years must be reallocated for payments under section 254B.09, 
 subdivision 5. 

    Subd. 5.    Administrative adjustment.  The commissioner 
 may make payments to local agencies from money allocated under 
 this section to support administrative activities under sections 
 254B.03 and 254B.04.  The administrative payment must not exceed 
 five percent of the first $50,000, four percent of the next 
 $50,000, and three percent of the remaining payments for 
 services from the allocation.  Twenty-five percent of the 
 administrative allowance shall be advanced at the beginning of 
 each quarter, based on the payments for services made in the 
 most recent quarter for which data is available.  Adjustment of 
 any overestimate or underestimate based on actual expenditures 
 shall be made by the state agency by adjusting the 
 administrative allowance for any succeeding quarter. 

    HIST: 1986 c 394 s 9; 1987 c 299 s 4-7; 1989 c 282 art 2 s 
 103; 1995 c 207 art 3 s 13; 1997 c 85 art 4 s 7; 1997 c 203 art 
 4 s 6; art 7 s 16; 1999 c 159 s 32