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This entry was published on 2014-09-22
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Distribution of state aid to a local governmental unit
Mental Hygiene (MHY) CHAPTER 27, TITLE D, ARTICLE 25
§ 25.11 Distribution of state aid to a local governmental unit.

Notwithstanding section one hundred twelve of the state finance law,
the office is authorized to grant state aid annually to local
governmental units in the following manner:

(a) Local governmental units shall be granted state aid by a state aid
funding authorization letter issued by the office for approved net
operating costs for voluntary agencies to support the base amount of
state aid provided to such voluntary agencies for the prior year
provided that the local governmental unit has approved and submitted
budgets for the voluntary agencies to the office. The voluntary agency
budgets shall identify the nature of the services to be provided which
must be consistent with the local services plan submitted by the local
governmental unit pursuant to article forty-one of this chapter, the
areas to be served and include a description of the voluntary agency
contributions and local governmental unit funding provided. The local
governmental unit shall enter into contracts with the voluntary agencies
receiving such state aid. Such contracts shall include funding
requirements set by the office including but not limited to
responsibilities of voluntary agencies relating to work scopes, program
performance and operations, application of program income, prohibited
use of funds, recordkeeping and audit obligations. Upon designation by
the office, local governmental units shall notify voluntary agencies as
to the source of funding received by such voluntary agencies.

(b) State aid made available to a local governmental unit for approved
net operating costs for a program operated by a voluntary agency or a
local governmental unit may be reduced where a review of such voluntary
agency's prior year's budget and/or performance indicates:

(1) that the program operated by a local governmental unit or
voluntary agency has failed to meet minimum performance standards and
requirements of the office including, but not limited to, maintaining
service utilization rates and productivity standards as set by the
office provided however, that upon determination that the program is not
meeting the minimum standards and requirements, the office shall notify
such program operated by a local governmental unit or voluntary agency
of their deficiencies, and if appropriate, a corrective action plan that
includes specific actions to address any deficiencies and a timetable
for implementation shall be developed. State aid may be reduced if a
corrective action plan is not approved by the office or is not
implemented in a timely and satisfactory manner;

(2) that the voluntary agency has had an increase in voluntary agency
contributions that reduces the approved net operating costs necessary,
except where the office has approved an alternative use of such
voluntary agency contributions or such voluntary agency contributions
are necessary to ensure financial viability.