Minutes 11/28/1978 - Laserfiche WebLink

Home Browse Search

(11) The Patrick Henry Drug and Alcohol Council divides the local cost on the basis of 60% usage and 40% population. The result is that Martinsville, 15.6% of the total population served by the Drug and Alcohol Council was asked to pay 28% of the total local cost to support the facility. Patrick County, 13.4% of the total population, was asked to pay 10.4%. I can find no cost-related reason for the usage formula. If Martinsville occupies 10 Anchor House beds per day or if Martinsville occupies 2 beds per day, I cannot see where this will affect the total yearly costs to Anchor House in view of the fact that the state pays 100% of Variable expenses, such as food. Also, I don't understand why two different agencies - - ~~ under the umbrella of Chapter 10 - - Mental Health and the Drug and Alcohol Council, use different cost allocation formulas one 80% usage - - the other, 60% usage. On what costs did they base their respective formulas? When I asked this question, the response has been that they felt it was fair. And my answer is that I'm not sure because it appears to be based on numbers simply pulled out of the sky and not based on costs. I am concerned about this. Obviously, localities with big populations and little agency usage will argue that they should be billed on the basis of usage. Conversely, localities with small populations and frequent agency usage will counter that they should be billed on the basis of population. From my point-of-view, I feel it is unfair for Martinsville to pay 3~.a% of the Mental Health Clinic's local cost and 28% of the Patrick Henry Drug and Alcohol Council's local costs