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Study on alternative to net deficit funding
Mental Hygiene (MHY) CHAPTER 27, TITLE E, ARTICLE 41
§ 41.24 Study on alternative to net deficit funding.

On or before April fifteenth, nineteen hundred ninety, the
commissioner shall submit to the legislature a study and recommendations
for a proposed alternative to net deficit funding established pursuant
to article forty-one of this chapter that includes the following:

(a) A cost-related funding methodology which adequately pays for
services necessary to provide appropriate care, which recognizes
geographic distinctions as they relate to cost and which ensures that
providers are reimbursed for the fixed or uncontrollable operational
costs such as interest, depreciation, property, capitalized development
costs, insurance and reasonable and necessary personnel costs.

(b) A guarantee of minimum maintenance of local government tax levy
financial participation at current levels.

(c) A system of incentives to promote the maximization of alternative
funding sources including but not limited to contract income and
charitable contributions.

(d) An evaluation of the relationship between net deficit funded
programs and other non-residential programs, excluding day treatment,
and a determination whether or not to incorporate the funding of all
such programs into a unified funding methodology.

(e) Information relating to a demonstration project undertaken by the
office in certain developmental disabilities services offices to examine
possible modifications in the use of medical assistance funding for
programs and services pursuant to the provisions of a federal grant.
Such information shall include specific recommendations for applying the
results of such demonstration project to programs and services operated
by voluntary providers.

(f) An examination of the implications of department of mental hygiene
consolidated fiscal reporting process and an incorporation, as
appropriate, of such implications into the formulation of

Such study shall be prepared in conjunction with a council of not more
than ten persons which shall include not for profit provider
organizations, parents of persons with developmental disabilities,
representatives of local government and others to be appointed by the