State Implementation of the Alcohol, Drug Abuse and Mental Health Block Grant

Testimony was given concerning the implementation of the alcohol, drug abuse, and mental health block grant in 13 States. GAO visited these States to determine: (1) the States' acceptance of their expanded management role under the block grant; (2) funding trends in State programs between 1981 and 1983; (3) State policy decisions associated with block grant implementation; and (4) perceptions about the block grant from different State officials and interest groups. GAO found that, under the block grant program, States have had to make only minimal changes in their organizations, there have been indications of administrative simplification, and States have been taking their expanded management role seriously. Trends in total expenditures for program areas supported with block grant funds showed increases in most States. The impact of Federal funding reductions was lessened by ongoing outlays from prior categorical awards and increases in State funding. GAO found that States did not make substantial changes to the kinds of services offered or to the services provided to the network of service providers; however, considerable change occurred at the service provider level. Almost all State officials liked the increased flexibility provided by the block grants and the reduced administrative requirements and viewed block grants as a more desirable way to fund the services than the prior categorical approach. However, about half of the interest group members interviewed tended to view the block grant method as a less desirable funding approach. Both interest groups and State officials felt that the Federal funding reductions that accompanied the block grant tended to diminish its advantages.