Relating to mental health and disability services funds to establish county-controlled accounts for administrative expenses and increase the amount mental health and disability services funds may carryforward

This bill relates to mental health and disability services funds to establish county-controlled accounts for administrative expenses and increase the amount mental health and disability services funds may carryforward. The mental health and disability services (MHDS) system is a system of separate regional service areas consisting of one or more counties that work together to provide services related to mental health and disabilities to people within those regions. Under current law, a county may use a county mental health and disabilities services fund (county services fund) in order to pay for MHDS-related expenses. At the conclusion of fiscal year 2021-2022, the counties will be required to transfer any remaining amounts in their county services funds to a combined regional account. The bill establishes county administrative funds that will be controlled by a county’s board of supervisors and used solely for the payment of county employees performing duties related to the mental health and disability services system. The bill allows the regional administrator to transfer funds received by a region into a county administrative fund or from an MHDS regional combined account into a county administrative fund after June 30, 2022. The bill provides that, for the fiscal years beginning on or after July 1, 2022, an MHDS region’s payments from the state will be reduced by the amount the region’s combined fund exceeds percent of its actual expenditures from the aggregate of the region’s combined account and county services funds. Under current law, for the fiscal year beginning July 1, 2022, state payments to regional accounts will be reduced by the amount that a region’s combined fund exceeds percent of the region’s actual expenditures, and for fiscal years beginning July 1, 2023, and after, state payments to regional accounts will be reduced by the amount that a region’s combined fund exceeds percent of the region’s actual expenditures. The bill provides that a region will remain eligible to receive funding from the state’s region incentive fund within the state MHDS regional service fund, assuming all other criteria are met, if, beginning in fiscal year 2022-2023, the region’s expenditures do not exceed percent of the aggregate amounts in the region’s combined account and county services funds. Under current law, for a region to be eligible for additional region incentive fund moneys, and assuming other criteria are met, for the fiscal year beginning July 1, 2022, a region may not have funds in the region’s combined account in excess of percent of the region’s actual expenditures, and in all fiscal years beginning July 1, 2023, and after, a region may not have funds in the region’s combined account in excess of percent of the region’s actual expenditures. The bill allows a county administrative fund to transfer funds into an MHDS regional combined account. The bill provides that the scope of a study committee created by 2021 Iowa Acts, chapter 177, section 107, shall also include the use of data-driven and outcome-based decision making to identify and recommend modifications to required core services for MHDS regions. The bill also provides that the study committee membership shall include, at a minimum, a representative from each mental health and disability services region as the chief executive officer of each region designates. The changes to the MHDS study committee are effective upon enactment.