Monday, June 28, 2010

Tax Reform is Desperately Needed in Kentucky !

The Commonwealth of Kentucky approved its budget for FY ’11, and it leaves a lot to be desired. I’m not criticizing the legislators, since they have only so much to work with. Let’s face it. There just aren’t sufficient dollars to pay for everything the state needs. Now is the time for state tax reform to increase revenues; currently, the tax burden falls on the middle class and working poor. Folks who earn between $15,000 and $47,000 pay nearly 11% in state and local taxes – while the wealthiest citizens pay only 6.1% of their income in state and local taxes!

Desperately needing some of that additional funding are community mental health centers in Kentucky, which are struggling to meet the demand for services.

Did you know that Kentucky was ranked 42nd in the country in funding mental health services in 2006? In its report, Grading the States 2006, the National Alliance for Mental Illness (NAMI) ranked Kentucky 42nd in per capita spending on mental health ($51.27), with total mental health spending at $210,000,000. By comparison, Indiana’s ranking in 2006 was 28th in per capita spending on mental health ($72.37); its total mental health spending was $448,000,000.

In NAMI’s 2009 Grading the States Report, it’s noted that little progress has been made in Kentucky. It reports, “The community mental health centers haven’t received a cost-of-living increase in their state contracts in 12 years.”

Without greater funding, more stress is put on other areas. Without outpatient treatment, folks end up in hospitals, where costs are greater. Seven Counties’ costs per day, including outpatient and medication services, are about $204 a day; the average cost for one day of treatment in a psychiatric hospital is $700 per day.

Without outpatient treatment, jails fill up with individuals whose major crime is that they have a mental illness. Between July 1, 2009 and April 30, 2010, Seven Counties – using a $183,000 grant – saved Metro Corrections $1,726,289 (figuring the cost of one day in jail is $68.00) by keeping individuals out of jail. Think how many people could be diverted from jail if more funding were available!

Until the state makes a committed investment to bolster its community mental health centers, everyone will be paying a higher price in emergency, inpatient and corrections services. Contact your state legislators and let them know that tax reform is needed now – not only for mental health but for all the other areas where Kentucky is coming up short.

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