SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
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This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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Fiscal Impact Summary
Sections 1 – 14 and Sections 17 – 20 of this bill restructure the current mental health agencies by
creating the Department of Behavioral Health and Developmental Disabilities (DBHDD) in FY
2025-26. This department will consist of the Office of Intellectual and Developmental
Disabilities (OIDD), the Office of Mental Health (OMH), and the Office of Substance Use
Services (OSUS). The Department of Alcohol and Other Drug Abuse Servies (DAODAS), the
Department of Disabilities and Special Needs (DDSN), and the Department of Mental Health
(DMH) will dissolve, and all existing FTEs and appropriated funds of these agencies will move
to the appropriate office within DBHDD. All applicable bonded indebtedness, real and personal
property, assets, liabilities, contracts, regulations, or policies of DDSN, DMH, or DAODAS will
continue in effect in the name of the DBHDD or the appropriate component division. The
Department of Administration (Admin) will assist with the transfer of operating expenses and
any other such transfers as specified in this bill. Further, the bill makes conforming changes
throughout the code to reflect the newly formed department and offices.
DDSN anticipates a one-time expense of less than $100,000 in FY 2025-26 related to changing
the department name and logo that can be managed within existing appropriations. Additionally,
dependent upon any additional responsibilities that may arise due to the restructuring, DDSN
anticipates this bill may have an additional undetermined expenditure impact beginning in FY
2025-26.
DMH anticipates that this bill will result in an undetermined expenditure impact in FY 2025-26
as this bill would likely affect the overall SCEIS master data structure, organizational workflows,
systematic program workflows, such as procurement authority and budget authorization, and
additional changes needed for contractual agreements held by DMH. DMH also anticipates a
potential increase in expenditures due to this bill, dependent upon any additional responsibilities
that may arise due to the restructuring.
Dependent upon any additional responsibilities that may arise due to the restructuring, DAODAS
anticipates this bill may have an additional undetermined expenditure impact beginning in FY
2025-26.
Admin anticipates that any costs associated with this bill can be managed with existing staff and
Bill Number: S. 0002 Amended b
y the Senate on February 26, 2025
Subject: Department of Behavi oral Health and Developmental Disabilities
Requestor: Senate Medical Affairs
RFA Anal
yst(s): Boggs
Impact Date: March 10, 2025
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appropriations. The Governor’s Office anticipates being able to manage the responsibilities of
this bill within the normal course of business.
Section 15 of this bill requires the director of the Department of Public Health (DPH) to hire a
Director of Community Living Integration and an Americans with Disabilities Coordinator. DPH
estimates an agency cost of $118,596 in salary and $53,368 in fringe benefits for 1.0 Program
Manager III FTE and $97,472 in salary and $43,862 in fringe benefits for 1.0 Program Manager
II FTE. DPH also anticipates that there will be an estimated $13,000 non-recurring expense for
laptops, monitors, and office equipment for the new employees and a recurring expense of
$61,856 for indirect agency costs and standard employee operating costs in FY 2025-26.
Therefore, this bill would result in an estimated non-recurring increase of $13,000 in FY 2025-26
and an estimated increase of $375,154 beginning in FY 2025-26. The agency anticipates
requesting an increase in General Funds appropriations to cover these expenses.
Section 16 of this bill authorizes the Medical University of South Carolina (MUSC) to fulfill the
role of Regional Tertiary Level Development Evaluation Center, to be referred to as a
developmental evaluation center. Also, this bill defines neurodevelopmental disorders and
requires MUSC to provide neurodevelopmental evaluations and limited treatments services for
individuals up to twenty-one years old who have a suspected or diagnosed neurodevelopmental
disorder or who are referred and accepted for services. Further, this bill requires MUSC,
contingent upon sufficient funding, to work with institutions, state agencies, and other
organizations to increase the number of neurodevelopmental professions, increase community
provider neurodevelopmental services capacity, and participate in neurodevelopmental research.
The fiscal impact of this bill is pending, contingent upon a response from MUSC.
Explanation of Fiscal Impact
Amended by the Senate on February 26, 2025
State Expenditure
Sections 1 – 14 and Sections 17 – 20 of this bill restructure the current mental health agencies by
creating DBHDD in FY 2025-26. This department will consist of the OIDD, OMH, and OSUS.
DAODAS, DDSN, and DMH will dissolve, and all existing FTEs and appropriated funds of
these agencies will be moved to the appropriate office within DBHDD. All applicable bonded
indebtedness, real and personal property, assets, liabilities, contracts, regulations, or policies of
DDSN, DMH, or DAODAS will continue in effect in the name of the DBHDD or the appropriate
component division. Employees of DAODAS, DDSN, and DMH shall maintain their same status
with the appropriate component department of DBHDD. Admin will assist with the transfer of
operating expenses and any other such transferred as specified in this bill.
The Governor, with the advice and consent of the Senate, must appoint the director to act as the
head and governing authority of DBHDD. Further, this bill lists the duties of the director to
include developing a cohesive and comprehensive plan for services provided by the component
offices housed within the department so that there is a maximum level of coordination among the
component offices. Additionally, this bill requires the director of DBHDD to procure
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collaboration technology that enables coordination and accountability across the departments and
with local partners.
Each component office shall be headed by an office director appointed by the department’s
director. The director may, to the extent authorized through the annual appropriations act or
relevant permanent law, organize the administration of the department, including the assignment
of personnel to the offices and among its component departments, as is necessary to carry out the
department's duties. Except as outlined in this bill, OIDD, OMH, and OSUS shall operate as
component departments of DBHDD in FY 2025-26 using the authority and funds appropriated to
DDSN, DMH, and DAODAS as standalone agencies in the appropriations act of 2025-26.
Further, all applicable bonded indebtedness, real and personal property, assets, liabilities,
contracts, regulations, or policies of the merging agencies shall continue in effect in the name of
DBHDD or the appropriate component division.
Department of Disabilities and Special Needs. DDSN anticipates a one-time expense of less
than $100,000 in FY 2025-26 related to changing the department name and logo that can be
managed within existing appropriations. Additionally, dependent upon any additional
responsibilities that may arise due to the restructuring, DDSN anticipates this bill may have an
additional undetermined expenditure impact beginning in FY 2025-26.
Department of Mental Health. DMH anticipates that this bill would likely affect the overall
SCEIS master data structure, organizational workflows, systematic program workflows, such as
procurement authority and budget authorization, and additional changes needed for contractual
agreements held by DMH. DMH anticipates this bill may increase expenses, dependent upon the
department responsibilities under the new structure. Therefore, this bill will have an
undetermined expenditure impact for DMH beginning in FY 2025-26.
Department of Alcohol and Other Drug Abuse Services. Dependent upon any additional
responsibilities that may arise due to the restructuring, DAODAS anticipates this bill may have
an additional undetermined expenditure impact beginning in FY 2025-26.
Department of Administration. Admin anticipates being able to manage the responsibilities of
this bill with existing staff and within existing appropriations. Therefore, this bill will have no
expenditure impact for Admin.
Governor’s Office. The Governor’s Office anticipates being able to manage the responsibilities
of this bill within the normal course of business.
Section 15 of this bill states that the director of DPH shall appoint a Director of Community
Living Integration who will be responsible for providing oversight in the assessment of the
current state of community integration in South Carolina and in the creation of the community
integration goals and objectives to be included in the State Health Plan. The Director of
Community Living will report to the director of DPH and shall select an Americans with
Disabilities Coordinator. The director of DPH shall also establish and appoint members to a
health planning advisory committee to provide advice in the development of the plan. Members
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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of the advisory committee should include health care providers, representatives from the disabled
community, disability advocacy agencies, consumers, payers, and public health professionals.
Members of the advisory committee are allowed the usual mileage and subsistence as provided
for members of boards, committees, and commissions.
Section 15 of the bill also requires DPH to hire a Director of Community Living Integration and
an Americans with Disabilities Coordinator. DPH used the midpoint of respective salary pay
bands to estimate the agency’s cost of filing these positions at $118,596 in salary and $53,368 in
fringe benefits for 1.0 Program Manager III FTE and $97,472 in salary and $43,862 in fringe
benefits for 1.0 Program Manager II FTE. DPH also anticipates that there will be an estimated
$13,000 non-recurring General Funds expense for laptops, monitors, and office equipment for
the new employees and a recurring General Fund increase of $61,856 for indirect agency costs
and standard employee operating costs in FY 2025-26. Therefore, this bill would result in an
estimated non-recurring increase in expenses of $13,000 in FY 2025-26 and an estimated
increase of $375,154 in expenses beginning in FY 2025-26. DPS anticipates requesting a
General Funds appropriations increase for these expenses.
Section 16 of this bill authorizes MUSC to fulfill the role of Regional Tertiary Level
Development Evaluation Center, to be referred to as a developmental evaluation center. Also,
this bill defines neurodevelopmental disorders and requires MUSC to provide
neurodevelopmental evaluations and limited treatments services for individuals up to twenty-one
years old who have a suspected or diagnosed neurodevelopmental disorder or who are referred
and accepted for services. Further, this bill requires MUSC, contingent upon sufficient funding,
to work with institutions, state agencies, and other organizations to increase the number of
neurodevelopmental professions, increase community provider neurodevelopmental services
capacity, and participate in neurodevelopmental research.
The fiscal impact of this section of the bill is pending, contingent upon a response from MUSC.
State Revenue
This bill will result in a transfer of an undetermined amount of revenue from current mental
health agencies to the newly created DBHDD in FY 2025-26.
Local Expenditure
N/A
Local Revenue
N/A