Mr. Sudbeck explained the funding sources available to the Alcohol and Drug Abuse division of the Department of Human Services. He explained that the Edward Byrne Fund provided monies for short-term adolescent services in Huron. He explained that this included those who go through treatment and recover, as well as those who go through treatment and relapse. Currently, their facility is assisting 22 adolescents.

Representative Richter asked how long the treatment program is. Mr. Sudbeck explained that it is a 14-day treatment service.

Senator Duxbury asked if there is follow-up after treatment with those treated in the 14-day period. Mr. Sudbeck replied that ADA follow-up is as follows: one time a month for three months, at the six month anniversary, and the one year anniversary.

Representative Richter asked if the entire fund for the program was for the two programs listed only. Mr. Sudbeck replied that it was.

Mr. Sudbeck went on to explain the other programs that were listed in ADA FY2002 Funding Sources and the individual programs listed. (See Document #2).

Representative Richter asked if the total amount of $306,380 in the Residential Substance Abuse Treatment Federal Fund is for the two programs alone. Mr. Sudbeck explained that there are two tiers of help for the 2,204 adolescents arrested. The first tier is for the child as an individual and the second tier is for the child and his/her family in family counseling.

Senator Putnam asked if Mr. Sudbeck had statistics to show the success rates of these programs and if the statistics were broken down into the two individual tiers. Mr. Sudbeck explained that the two programs were statistically separated and he could supply the information requested at a later date.

Senator Duxbury asked if the programs serviced the entire state or if they were limited to the areas where the services originated. Mr. Sudbeck explained that although the originating locations will hold the main source of service, by request, other areas can apply for this same aid. The other locations can also receive the same services by referral of the courts in their area.

Representative Klaudt asked if Mr. Sudbeck had a list of the organizations that the Department is contracted with and their statistical information. Mr. Sudbeck replied affirmatively.

Senator Kleven asked if the 19-20 year-old offenders and abusers were aided by any of the listed programs. Mr. Sudbeck explained that they were covered under the Highway Safety portion of the

funding sources. (See Document #2)

Representative Richter asked how TANF is accessed through the Department of Social Services versus how TANF is used by the ADA division. Mr. Sudbeck explained that the funds for ADA come into the TANF service funds provided by the DSS. They have modeled their programs after the ADA program and they work closely together.

Senator Putnam inquired as to where the referrals for TANF needs are coming from. Mr. Sudbeck explained that the referrals come through the court systems at this time because few know about the availability of this fund.

Mr. Sudbeck explained the Violent Offender Incarceration and Truth In Sentencing fund.

Senator Putnam asked if the three FTE positions requested are to be parole officers and if they would be screening the applicants for needs' assessment. Mr. Sudbeck said that the FTE's would be parole officers in Rapid City and Sioux Falls and the screening will be done by the parole officers in the State Penitentiary. The new parole officers will also receive their referrals from the State Penitentiary officers.

Representative Richter asked if they are currently being referred clients through the parole officers. Mr. Sudbeck replied that high risk clients are not being referred.

Senator Putnam asked what they would do with the additional referrals after the federal funding was depleted. Mr. Sudbeck replied that the Department of Corrections had funds to finance this program for many years and will continue to do so.

Senator Duxbury asked if the FTE's have a high turnover rate and if Mr. Sudbeck had any general comments about the current FTE's. Mr. Sudbeck explained that there are two or three vacancies at this time and that the current FTE status is satisfactory.

In discussing the other funds (See Document #2), Mr. Sudbeck explained that these funds do include gambling addiction services. He said that there are currently 12 programs with service given to 318 individuals in fiscal year 2000.

Representative Richter asked from where the referrals for gambling addiction counseling come from. Mr. Sudbeck answered that half of the referrals come from family members of the afflicted and the other half from various other sources.

Representative Richter asked if all of the appropriated funds given to this program were utilized last year. Mr. Sudbeck replied that they had a $49,000 residual remaining.

Representative Clark asked if statistics showed that gambling addicts also had substance abuse

problems. Mr. Sudbeck answered that 60% of gambling addicts were also otherwise addicted.

Representative Burg inquired about the cost for gambling addiction services. Mr. Sudbeck replied that it cost $170 per day for inpatient treatment and $16 a day, or a total of $1,000, after treatment is complete for outpatient therapy.

Mr. John Jones, Secretary of the Department of Human Services, was introduced. He said that the department places those who are referred into the correct programs so that inpatient therapy, which is more expensive, is utilized only when the need is sufficient to do so. Almost all the funds are used up for the inpatient program. He stated that the Deadwood Gaming Association offered to assist them with funding gambling addiction programs, but DHS turned them down in the past because they didn't need the funding then. Now that the need is greater, DHS plans on approaching the Deadwood organization to ask for funds.

Representative Richter asked how many agencies are contracted within the $234,474 from other funds. (See Document #2) Mr. Jones replied that there is a total of 12 agencies dividing the funds.

Representative Richter inquired about the recidivism rate in the program. Mr. Jones replied that the statistics were not yet known because the program is in its infancy stage.

Representative Lange asked which part of the percentage of the incarcerated inmates within South Dakota are due to gambling addictions. Mr. Jones replied that it was a question that should be posed to the Department of Corrections.

Representative Klaudt asked where the $49,000 of unused funds were at this time. Mr. Jones replied that they remain in the funds and that they only draw the monies as needed.

Mr. Doug Austin of the City/County Alcohol and Drug Program/Southern Hills Alcohol and Drug Program was introduced. He stated the statistics in 1999 of those in the programs stated that there were 5,755 and in 2000 there were 7,925. He expects that the numbers are going to be higher in 2001 and there is no funding left. He explained his thoughts on the need for more funding. He asked for an appropriation of $335,000 from the general fund. He also stated that it would just cover the projects already in effect.

Mr. Austin continued his discussion by stating that no adolescent female treatment center is available and that we are in need of a dual diagnosis evaluation for adults and juveniles and a juvenile halfway house.

Representative Richter asked if there are funds from the cities and counties for these types of programs. Mr. Austin replied that they receive $170,000 from each of them.

Representative Richter asked what percentage of the $340,000 went to administrative cost. Mr.

Austin stated that administrative costs were 12% of the budget.

Senator Koskan asked if the local program has ever charged for their services. Mr. Austin replied that they have, but it forced them to lose $16,000 because the charges were uncollectible from individuals, insurance companies, etc. The only monies they are guaranteed to receive are from the court systems that place referrals.

Senator Putnam asked if the local programs have also received funding from other cities or counties. Mr. Austin said that they are the only agency of that nature in Rapid City, so he does not believe that they have.

Senator Putnam asked if they had statistics for the recidivism rate, the success rate, and if all the 5,000 assisted were new clients. Mr. Austin stated that they do track recidivism rates and it is not a substantial number. The success rate is 45% and most of the 5,000 are new clients every year.

Representative Richter asked where the juvenile referrals were received from and if they have other options. Mr. Austin stated that the referrals come from the court system as a sentence to treatment. The other services they provide are assessments to decipher the juvenile's needs.

Representative Richter asked for clarification that there are no female juvenile services in the West River area of South Dakota. Mr. Sudbeck returned to the table and clarified that he was correct.

Representative Pummel asked if the figures of 70% of those given aid are American Indians. Mr. Austin confirmed that statement.

Representative Pummel asked if there is aid given to the local programs through the tribes. Mr. Austin stated that they did not provide aid.

Representative Adelstein explained the Weed and Seed Program in Rapid City, South Dakota and asked if the juveniles 'weeded out' were sent to the programs that Mr. Austin is involved with. Mr. Austin replied to the affirmative and stated that they receive no funding to assist the juveniles referred to them through this program and that the Weed and Seed Program is funded directly.

Representative Burg asked Representative Adelstein if the Weed and Seed Program worked well. Representative Adelstein answered that it was still in its infancy stage and it was too soon to tell.

Representative Klaudt asked if there is aid provided through Indian Health Services for the Weed and Seed Program for the American Indians that are assisted. Mr. Austin stated that they were not given aid by IHS because it believes this is a county problem.

Senator Drake asked why there was a need for another facility for juvenile females when the Quest Program in Custer, South Dakota is in place and is expanding. Mr. Austin stated that Quest is a

Department of Corrections facility and not available to those not involved in the court system.

Senator Lange asked if the Department had plans for when the federal funding ran out for referrals from the court system. Mr. Austin stated that he had notified the Pennington County Court System that they had enough funding for seven more people and would not be able to help any others until June 1, 2001.

Senator Madden asked if Title XIX, also known as Medicaid, is available to the pregnant teens involved in their program. Mr. Austin stated that his organization is a government organization and is not eligible for Title XIX funding.

Senator Drake asked to confirm that the projected number of people needing assistance in 2001 was 7,925 and that they were not double-counting. Mr. Austin confirmed the numbers and stated they were not double-counting.

Mr. Kelly Johnson, director of an outpatient, nonprofit facility in Huron testified that the budget decrease will sufficiently deplete the ability of mental health facilities to assist those in need. He stated that they have had to ask their staff to decrease their salaries and that they have lost several employees. He feels it is necessary for South Dakota as a state too back-up the funding to the mental health facilities to show their support of the mentally ill.

Representative Derby asked if the abstinence rate has increased in the alcohol and drug addicts that were given aid. Mr. Johnson stated that the 7.5% rate was over a 12-month period and showed an accurate picture of abstinence rates.

Representative Pummel asked if there was an increase this year in the number of people treated. Mr. Johnson replied that he showed a 14% increase.

Senator Duxbury asked where the increase was found and Mr. Johnson said the increase is in juveniles.
        
Meeting was recessed at 9:50 A.M.

Meeting was reconvened at 10:05 A.M.

Mr. Jim Hayes of the Community Alcohol and Drug Center of Mitchell, SD was introduced. He stated that he too supported the others testimony that funds were needed to continue their programs and services.

Mr. Terry Dosch of the S.D. Council of Mental Health Centers, Inc., was introduced and he stated that while there may not appear to be a loss of funding when looking at the Governor's numbers in the FY2002 Budget Recommendation (See Document #1), it is important that the Legislature of

South Dakota replace the general fund monies taken from the mental health facilities in order to show support to the mentally ill and make a difference in South Dakota lives.

Representative Klaudt asked if alcoholism was a sickness and if insurance would aid in the payment for services. Mr. Dosch stated that it is an illness and at times insurance will assist.

Representative Klaudt asked if the Children's Health Insurance Program assisted and Mr. Dosch stated that it does not.

Representative Pummel asked if the percentage of increase for all programs and facilities is statewide. Mr. Dosch replied that the median statewide is 10%.

Mr. Johnson was asked to respond to Representative Clark's question on the increase in need from addicts. Mr. Johnson explained that the increase is due to earlier intervention, less stigma attached to addicts who admit they need assistance, and more social cooperation between agencies to provide assistance.

Senator Dennert asked if the state of South Dakota had to maintain a certain percentage of aid for the federal government to help finance the programs. Mr. Jones answered by saying that he didn't feel it was legally mandated.

Senator Duxbury asked if those who are referred by the school systems for aid are directly referred by the schools or if the schools are mandated to alert the parents of the juveniles first. Mr. Kelly replied that the schools can directly refer or go through the parents for a referral for aid.

Mr. Jones asked to speak and stated that he feels the city and county governments need to help in funding the community based mental health facilities. If they would, the department's budget would decrease by $400,000. The need for the department's assistance remains at this time. The department is reluctant to remove that assistance until the city or county will guarantee assistance.
Senator Putnam stated that the community based mental health facilities do need to look into other options of funding available to them.

Representative Adelstein stated that he does want the state to assist with the community based mental health facilities and that it is a state issue.

Betty Oldenkamp, Administrator of the Mental Health Division of the Department of Human Services, was introduced and explained their goals, mission and services.

Senator Putnam asked if there is a definition for 'indigent' or is it defined by a state or federal statute. Ms. Oldenkamp stated that each community based mental health facility has their own definition.

Senator Putnam asked if the contracted areas are throughout the state or do those who need services have to go to an office in a larger town. Ms. Oldenkamp stated that the department has several satellite offices and that the aid comes to those who need it rather than the needy having to come to the offices.

Senator Dennert asked if contracting with community based mental health/private facilities will relieve pressure on the system, i.e., waiting lists. Ms. Oldenkamp stated that the waiting list may get shorter.

Senator Drake asked if money is taken from the state program at Custer, South Dakota to fund community-based programs. Ms. Oldenkamp replied that early prevention and less restricted community-based facilities have higher retention rates of abstinence. This could possibly make court systems turn to them rather than state facilities and therefore, reducing state facilities and funding to them.

Senator Putnam asked that if a juvenile is involved in the court system, referred to DHS by the Department of Corrections to assess their need, and then are determined to need state assistance rather than community-based assistance, does the Department of Human Services monies follow that juvenile into the state facility to pay for their aid or does it end when they are determined to need state rather than community based need. Ms. Oldenkamp replied that when a juvenile offender is referred to Department of Human Services for assessment, the Department of Corrections does not fund that assessment and when they are turned back over to Department of Correction, the funding comes from DOC to give aid to the juvenile.

Senator Dennert asked why if the inflation rate is really beyond 1.8% that the Department requires the community-based programs to live within those means but requests almost 6% inflationary funding for the department when it is asking the community-based centers to do a portion of their work for them, such as means testing. Senator Putnam replied to Senator Dennert's question by stating that the 1.8% is a median across the country given out by different bond rating companies and is used by public agencies to maintain their service level. In addition, monies from the general fund may be used to leverage additional federal dollars.

Representative Adelstein asked if there is a change in grant amounts to switch from state to federal grants, and will community-based facilities receive any funding or get the same or less amount. Ms. Oldenkamp replied that it is a bulk grant exchange with no actual change of funding amounts given.

Representative Adelstein asked if means-testing is going to help. Ms. Oldenkamp replied that it will remove some of the financial burden from the department because those who can pay for their own services will, and it will also help boost the private sector.

Senator Apa asked if considerations have been made for those with hardship circumstances and if it could be done on a case-by-case basis rather than an overall means test. Ms. Oldenkamp stated that the cost of tracking a scale of participation was too great so they considered it and decided against it.

Ms. Sandy Diegel, Director of Behavior Management Services of Rapid City, South Dakota was introduced. She stated her point of view on the need for more budget appropriation and the restoration of monies from the general fund. She also referred to the additional FTE positions which are needed, better technology, and that the new requirements from the federal government are costing the mental health facilities more than they can afford.

Dr. Charles Sherman, Human Service Agency, Watertown, South Dakota was introduced and stated his position was also to testify about the need for the financing from the general fund to be replaced because of the lack of experienced staffing, the need for means testing, and the inability for the community-based programs to continue without funding.

Senator Madden asked if the department expected a federal grant in the near future. Mr. Jones came forward and answered that they will not be able to determine state allocations for another two weeks but will provide that information when it is received.

Chairman Richter stated that the committee meeting was now at a close and they would reschedule another time to finish the Department of Human Services budget hearing.