Some states, such as California, Illinois, Nevada and South Carolina, which made devastating cuts to mental health services previously, have made further cuts for fiscal year (FY) 2012, putting tens of thousands of citizens at great risk. States have cut more than $1.6 billion in general funds from their state mental health agency budgets for mental health services since FY2009, a period during which demand for such services increased significantly. These cuts translate into loss of vital services such as housing, Assertive Community Treatment, access to psychiatric medications and crisis services.

Modest increases in state general fund mental health spending fail to compensate for the loss in federal Medicaid revenues that hit states due to reductions in federal Medicaid rates implemented at the end of June 2011. Moreover, to make up for these lost federal Medicaid revenues, states such as Arizona and Ohio have shifted state general fund mental health dollars to Medicaid recipients, leaving many non-Medicaid recipients with serious mental illness without services.

The data in this report is limited to general fund appropriations for state mental health agencies (SMHAs). It does not include mental health funds that are under the control of other state agencies such as state Medicaid agencies, housing authorities, or child and family authorities. Further, state hospital or ward closures and personnel cuts may be in other departmental or agency budgets. Were all cuts affecting mental health services factored in, the sum of the total cuts would be significantly higher.

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Appendices

• Appendix I: Methodology
• Appendix II: State Mental Health Budgets FY2009-FY2012 (Alpha Order)
• Appendix III: State Mental Health Budgets FY2009-FY2012 (Percentage, High to Low)
• Appendix IV: State Mental Health Expenditures FY2011-FY2012 (Percentage, High to Low)
• Appendix V: Per Capita State Mental Health Spending FY2009 (Alpha Order)
• Appendix VI: Estimated Loss of Enhanced Federal Medicaid Match in FY2012 (Alpha Order)

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¹Honberg, R., Diehl, S., Kimball, A., Gruttadaro, D., & Fitzpatrick, M. (March, 2011). State Mental Health Cuts: A National Crisis. Retrieved from >www.nami.org/budgetcuts.
²Depression is Real Coalition, Mental Health America, National Alliance on Mental Illness (October, 2009). Economic Downturn Taking Toll on Americans’ Mental Health. Retrieved from www.nami.org/Content/NavigationMenu/Top_Story/Economys_Toll_on_Mental_Health.htm. See also: Goodwin, J. (2011, October 21). Study: Foreclosure crisis threatening Americans’ health. USA Today. Retrieved from http://yourlife.usatoday.com/health/storty/2011-10-21/Study-Foreclosure-crisis-threatening-Americans-health/50852046/1.