New Jersey Governor Stalls Children’s Mental Health Services Restructuring; Sets Up Task Force

For the third time in the last year, a plan to privatize New Jersey's mental health system for children has stalled, as Gov. James McGreevey (D) froze $20 million of $136 million in funding intended to restructure system, the Newark Star-Ledger reports (Livio, Newark Star-Ledger, 3/5). Former Gov. Christine Todd Whitman (R) in 2000 proposed the plan, called the Children's System of Care Initiative, under which private companies, rather than state workers, would coordinate mental health services for New Jersey children. Three counties began pilot versions of the program in February 2001, and the state eventually intended to expand the program to other counties (Kaiser Daily Health Policy Report, 7/13/01). But in April 2001, then-acting Gov. Donald DiFrancesco (R) stopped the program from expanding beyond the three counties and hired consultants to determine if the program was "worthwhile." After the consultants found the program had made "substantial improvements" in the state's children's mental health services, DiFrancesco extended it to four more counties. However, DiFrancesco in November stalled further expansion because the state was facing a budget deficit. Now, the state has set up a task force of mental health, family and child advocates to examine the program's progress and make recommendations for its future, acting Human Services Commissioner Gwendolyn Harris said. Julie Turner, former executive director of the New Jersey Association of Residential Facilities and the task force's chair, said the panel will examine the program's cost and efficiency. The Star-Ledger reports that labor leaders in particular have been "critical" of the program's cost, as well as its "bureaucracy" and use of private-sector providers. Turner said, "At a time when there are budget restraints, any commissioner would want to be sure [the program is] working well before expanding into other counties" (Livio, Newark Star-Ledger, 3/5).