DSL INFO MEMO 2001-07
December 20, 2001
STATE OF WISCONSIN
Department of Health and Family Services
Division of Supportive Living
To:
Applicant Agencies for IDP Supplemental/Emergency Funds
Bureau Directors
County Departments of Community Programs Directors
County Departments of Developmental Disabilities Services Directors
County Departments of Human Services Directors
County Departments of Social Services Directors
Section Chiefs
Tribal Chairpersons/Human Services Facilitators
From:
Sinikka McCabe, Administrator
Re: Potential Federal Synar Penalty
Use of Intoxicated Driver Supplemental/Emergency Funding
I am writing to provide formal notification that the Department of
Health and Family Services (DHS
) is currently unable to advance
intoxicated driver program (IDP) supplemental funds for state fiscal
year 02. This decision is linked to the Department’s need to comply
with conditions of the Substance Abuse Prevention and Treatment Block
Grant (SAPT), known as the Synar Amendment, that relates to youth access
to tobacco products.
As part of the federal SAPT Block Grant, states are required to
reduce youth access to tobacco products. This reduced access requires
verification through implementation of a compliance study that must be
conducted each federal fiscal year prior to submission of the block
grant application. For the past three years, Wisconsin has successfully
demonstrated a reduction in tobacco sales to minors. In 2001, however,
Wisconsin did not meet its 22 percent target rate for non-compliance.
This compliance expectation is that no more than 22 percent of attempts
by youth to purchase tobacco products as part of the compliance study
can be successful. Wisconsin’s Synar non-compliance rate for 2001 is
33.7 percent or 11.7 percent over the target rate. As a result,
Wisconsin is in non-compliance with the Synar condition of the block
grant.
The federal penalty for non-compliance is a 40 percent reduction in
the federal fiscal year 02 SAPT block grant. The federal fiscal year 02
award is in excess of $24 million; therefore, the potential penalty for
federal fiscal year 2002 is approximately $10 million. The majority of
this $10 million reduction is currently allocated to county treatment
programs.
Other states have been out of compliance in the past and, based upon
their experience, the Bureau of Substance Abuse Services has learned the
following:
- Some states have been able to avoid the 40 percent penalty by
successfully negotiating an alternative penalty of commitment of
state funds to expand tobacco enforcement activities.
- Based upon the experience of other states, the Bureau of Substance
Abuse Services estimates that Wisconsin may be required to invest up
to $3 million to increase enforcement activities for this
alternative penalty. This increased enforcement effort will need to
be in place for a minimum of one year and most likely for two years.
After careful review of this situation, the Department has concluded
that commitment of the additional funding is essential in our
negotiations to avoid the 40 percent penalty. If we are unable to
demonstrate an increase in enforcement, the $10 million reduction in the
federal substance abuse prevention and treatment block grant award to
Wisconsin would seriously reduce the treatment infrastructure in this
state. Since the 40 percent penalty will be applied to the SAPT block
grant allocation that became available on October 1, 2001, local
substance abuse programs are already at a significant risk. At this
point DHS
has not reduced the funding for the local programs. However,
if the federal government applies the 40 percent penalty, the
implication is that as of mid August 2002 no SAPT funds will be
available to counties as part of Community Aids until the end of CY
2002. Community aids allocations funded from the state’s Federal FY 02
SAPT block grant award are presented in Attachment 1 along with the
impact of a 40 percent reduction.
In addition to the Community Aids reduction in late summer 2002, many
special programs such as women’s substance abuse treatment programs,
Tribal substance abuse programs, Correction’s treatment programs and
Brighter Futures would receive no funding. This funding would not resume
until issuance of CY 2003 contracts. Since these programs have little
other funds, we are concerned that they would not be able to sustain
operations. This penalty would likely be applied again in federal fiscal
year 03 since we expect that we would not meet the Synar target of 20
percent non-compliance in federal fiscal year 02.
These reductions are traumatic and severe. As you know, the current
fiscal environment is extremely austere, and, with the exception of the
IDP supplemental funds, DHS
has been unable to identify any other
non-federal funds available to support the increased enforcement
activities. As a result, the Department has decided to seek legislative
authorization to use IDP supplemental funds for a period of two years to
meet the alternative penalty requirement and avoid the 40 percent
penalty. (See Attachment 2 for information about counties that will be
impacted by this decision).
I am aware that this formal notification comes to you very late in
the year and will make fiscal planning in your county extremely
difficult. However, the Department, and you as our county partners, face
an even larger fiscal problem if 40 percent of the SAPT block grant is
cut by the federal government. This action, while painful, is intended
to avoid the $10 million penalty, which would cause even greater
difficulties for all concerned.
REGIONAL OFFICE CONTACT:
Area Administrator
CENTRAL OFFICE CONTACT:
Philip S. McCullough
Bureau Director
DHS
/DSL/BSAS
(608) 266-3719
Attachments:
SAPT Block Grant Reduction Chart
IDP Chart
cc:
Area Administrators/ Assistant Area Administrators
Wisconsin Counties Association, Executive Director
Wisconsin County Human Services Association President
Wisconsin County Human Services Association,
AODA Technical Advisor Committee Chair
Jim Webber, Tribal Office
Susan Dreyfus, DCFS
Lou Oppor, DCFS
John Litscher, DOC
John Kiesow, Secretary’s Office
Diane Waller, OSF
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