John Houston

Commissioner

Alabama Department of Mental Health

& Mental Retardation

100 North Union Street

Montgomery, AL 36130

Dear Commissioner:

You are invited to submit a State application for the Community Mental
Health Services Block Grant (BG) for Federal Fiscal Year (FFY) 2008. The
Center for Mental Health Services (CMHS), within the Substance Abuse and
Mental Health Services Administration (SAMHSA), is pleased to offer
funding to support comprehensive community-based systems of care for
adults with serious mental illnesses (SMI) and children with serious
emotional disturbances (SED). A copy of the FY 2008 Mental Health Block
Grant Application Guidance and Instructions may be accessed at the
following website: [www.mhbg.samhsa.gov](http://www.mhbg.samhsa.gov/).

As SAMHSA/CMHS continues to move forward with its charge to transform
the nation's mental health system, we have taken the opportunity to
include transformation language in the new guidance. Transformation, as
a guiding principle in the development of State plans, is integrated
into the statutorily mandated criteria for children and adults. A new
Table 4 has been added to report transformation activities funded by the
MHBG and other State funding sources. [This requirement, supported by
the Office of Management and Budget, is **not optional** in FY 2008;
therefore, CMHS strongly encourages States to report Table 4. For States
unable to report Table 4 at the time of submission of the State's plan
on September 4, additional guidance will be provided by the MHBG
Program.]{.underline} Also, to ensure that consumers and family members
are engaged in mental health transformation, the Guidance requires
States to describe activities of the Mental Health Planning Council
(MHPC) that contribute to State transformation efforts. The final
addition to the Guidance includes a State-specific transformation
outcome measure and a description of services to older adults included
under criterion four.

In the past three to five years, SAMHSA partnered with States to find
ways to assess outcomes for people striving to attain and sustain
recovery, build resilience, and participate fully in their communities.
As a result, nine mental health domains or National Outcome Measures
(NOMS), were identified for States to report annually to CMHS through
the MHBG Program. Since 2003, all 59 States and Territories have
reported on four required measures and are now asked to report on the
remaining five measures in FFY 2008. Two of the added five measures are
considered developmental and require further guidance, which CMHS will
provide to States under separate cover. States that are unable to report
the added NOMS or the Uniform Reporting System (URS) Tables are asked to
complete the State Level Data Reporting Capacity Checklist located on
the NASMHPD Research Institute (NRI) website:
<http://www.nri-inc.org/SDICC/defsdicc.cfm>.

SAMHSA/CMHS encourages States to use the Web Block Grant Application
System (WebBGAS) to submit their FY 2008 applications. WebBGAS was
introduced in FY 2005 to reduce the paperwork burden in applying for
block grant funds. In FY 2007, 36 States and Territories used WebBGAS.

[FY 2008 Application Guidance and Instructions]{.underline}

SAMHSA/CMHS developed the Application Guidance and Instructions with
consultation from State mental health planners, the National Association
of State Mental Health Program Directors (NASMHPD), and the National
Governors Association. The Office of Management and Budget approved the
Application Guidance for one year, FY 2008.

[Information on Allotment Amounts]{.underline}

States are asked to submit their FY 2008 applications based on the FY
2007 Allotment Table that is provided in Enclosure 1. If necessary,
States should plan to amend the application once a final federal
appropriation is made and the MHBG allotment is received.

[Consultative Regional Peer Review]{.underline}

States are asked to discuss their FY 2008 applications and modifications
at the consultative regional peer review. State staff and MHPC members
are expected to speak to the contents of the application and progress
made toward transformation, as well as respond to questions from the
review panel. During the review process, all plans will be reviewed as
one-year plans in FY 2008.

The Regional Consultative Peer Reviews for FY 2008 are scheduled on the
following dates:

Northeast: October 10, 11, & 12

Midwest: October 17, 18, & 19

Southwest: October 30, 31, &, November 1

West: November 6, 7, & 8

Southeast: November 28, 29, & 30

[Implementation Reports for FY 2007]{.underline}

The FY 2007 MHBG Implementation Report should provide sufficient
information to determine the extent to which the State accomplished its
prior year's plan. The legislation mandates a reduction in State MHBG
allotments when the State's plan is not fully implemented within the
reporting year.

[Submission of Application and State Plan]{.underline}

The State's FY 2008 application is due no later than Tuesday, September
4, 2007. Since September 1 falls on Saturday, the application is due the
first work day following the weekend and holiday. The implementation
report for FY 2007 is due no later than Monday, December 3, 2007. If the
application and implementation report are not received in the Office of
Grants Management by these dates, the State will not receive a grant for
the year indicated.

Hard copies of State applications should be mailed to:

[Regular Mail]{.underline}

LouEllen Rice, Grants Management Officer

Substance Abuse and Mental Health Services Administration

Division of Grants Management, OPS

1 Choke Cherry Road, Room 7-1091

Rockville, Maryland 20857

[Overnight & Express Mail]{.underline}

LouEllen Rice, Grants Management Officer

Substance Abuse and Mental Health Services Administration

Division of Grants Management, OPS

1 Choke Cherry Road, Room 7-1091

Rockville, Maryland **20850**

For additional information related to fiscal management of the block
grant, please contact Ms. Rice at (240) 276-1404. Federal project
officers may be contacted at: (240) 276-1760.

Sincerely yours,

Joyce T. Berry, Ph.D., J.D.

Director

> Division of State and Community
>
> Systems Development
>
> Center for Mental Health Services

cc: State Planners

Mental Health Planning Council Chair

Grants Management Office

Enclosure:

2007 MHBG Allotment Table