TCADA BUDGET WOES FORCE CUTS IN FUNDING FOR SERVICE PROVIDERS

AUSTIN -- In a move that could reduce treatment options for poor, homeless
or uninsured people, the Texas Commission on Alcohol and Drug Abuse on
Wednesday said it is scaling back contracts with 200 community-based
service providers to avert a projected $28 million budget shortfall.

Though services will continue at their 1999 pace, they won't expand as
planned during the state budget cycle that ends in August, officials said.

Twenty-four Houston area providers, some with multiple locations, will be
affected. The providers range from counseling centers to hospitals and
nonprofits that offer prevention, intervention and treatment programs for
children and adults.

Together, the Houston-area facilities will receive about $30.5 million in
the fiscal year ending Aug. 31, the same as last year. Statewide, the
commission will spend about $149.5 million this year.

The problems facing the commission can be traced to last year's budget
process. In its request to lawmakers, the commission underestimated the
amount service providers were spending in 1999 and overestimated how much
would be left unspent for use this year.

"We have resolved this budget situation in a way that preserves 1999
service levels in every region of the state," said TCADA director Jay
Kimbrough.

Kimbrough took charge Feb. 1, when the commission was emerging from the
trauma of conservatorship imposed by the state in 1995 due to fiscal
mismanagement. Kimbrough said he's determined to keep the agency focused on
helping the neediest.

"Programs that provide critical direct services to clients, such as youth
treatment, methadone and specialized female services, took the smallest
(spending) restriction to ensure that needs of the most vulnerable
populations took priority," he said.

The commission is cutting spending by about 4 percent or 5 percent.
Officials are confident the cuts won't force drastic changes at agencies
that cater to high-priority groups.

"It's something we've got to live with and still serve the same
population," said Leslie Smith, who operates Families Under Urban & Social
Attack Inc. in Houston.

Similarly, Eugene Davis at Easy Does It Inc. of Houston said the funding
reduction is a wake-up call for nonprofit groups that rely heavily on
government funding. He praised TCADA for minimizing the adverse impact of
the funding rollback.

"TCADA only did what it had to do, and Easy Does It is willing to do its
part" by seeking other funds, Davis said.

"We can't sit around and wait for TCADA money. We have to go after federal
dollars, foundation dollars and municipal dollars because they're there for
kids," he said.

"We really think we'll be able to continue giving the services that we're
giving," said Davis, adding, "we were prepared for this."

Even so, some providers said there's no way they will be able to serve as
many adults with the new restrictions.

"We're not going to be able to provide services to as many clients," said
Pamela S. Smith, president of Door to Recovery Inc. in Houston.

"Your medically indigent clients are going to be the ones really hurt by
this -- the client who has no health insurance or any insurance that would
pay for drug and alcohol abuse treatment," Smith said. "That individual and
the homeless individual are going to be hit pretty hard."

Programs and personnel could be affected, Smith said. Like others, Smith is
striving to minimize turmoil by seeking funds from other sources, she said.

"We will have to make some real hard decision, some serious cuts."