PRESS RELEASE
April 14, 2004

Gov. Johanns Signs Mental Health Reform Bill

(Lincoln, NE) Gov. Mike Johanns signed into law today the mental health reform bill, LB 1083, which moves Nebraska’s mental health system toward
community-based services throughout the state and away from institutionalization.

“This legislation represents a victory for people with mental illnesses and their families,” Gov. Johanns said. “Under this new law, Nebraska will finally recognize the dramatic advances in treatment and give courageous citizens new hope to achieve recovery and participate in their communities.”

“Many people deserve credit for this historic legislation, from Senator Jim Jensen and the bill’s co-sponsors to the consumers, advocates and providers who assisted with the development of the bill and the efforts to advance it,” Gov. Johanns said. “It is very gratifying to see my top reform priority of this session cross the finish line. Now we will roll up our sleeves to implement this reform with the same passion that we devoted to its passage.”

LB1083, introduced by Sen. Jim Jensen, creates the Division of Behavioral Health Services within the Department of Health and Human Services (HHS)
and its existing budget. It will formulate a statewide implementation plan (encompassing six regional plans submitted to HHS). The statewide plan will
be submitted by July 1, 2004 to a newly formed, 20-member Behavioral Health Oversight Commission.

The new division of HHS will also ensure that the necessary array of services is available and the placements are appropriate for each mental health consumer. Community-based services may range from intensive, hospital-level care to a secure, specialized wing of a nursing home, other residential facility, or day treatment program.

Funding for the reform will include $6 million to fund parallel systems during the transition, $2 million annually for rental assistance and $2.5 million annually for costs related to emergency protective custody (more than double the current funding level). The funding for inpatient care at the Hastings and Norfolk Regional Centers, $29 million annually, will be redirected into statewide community-based services following the closure of each facility. The redirection of funds is expected to capture another $9 million annually in federal Medicaid funds. Medicaid rules preclude regional centers from receiving federal funding, while providing a 60 percent match for qualified community-based services.

The reform includes a collaborative effort between the medical centers at Creighton University and the University of Nebraska to provide behavioral health training, research, and clinical services and a program to deliver professionals to serve rural Nebraska. The Governor has pledged to seek
private funding for an Omaha facility for patient care, whether it’s located in a new or existing building.

Gov. Johanns said, “I commend the two medical centers for setting aside their competitive spirit to develop plans for and commit to an ongoing partnership that will enable us to move our state from the bottom of the pack nationally to a prominent position as a leader in mental health and a model of statewide recovery-based services.”

Archive Index

Governor Mike Johanns signing LB1083.


Kathleen Foster, Governor Johann's
Policy Advisor and Larry Courtnage from
The Kim Foundation.


The Governor speaks before signing LB1083.

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The legislation requires that appropriate community-based services be available before regional centers are closed. When the regional centers reach 20 percent of capacity, a majority vote by the Executive Board of the Legislature will allow for their closure.

Gov. Johanns encouraged community leaders in Hastings and Norfolk to remain at the table as plans for community-based services are refined and implemented. He said, “Both communities have a long history of providing mental health services and I continue to believe there is a role for them to play in this reform.”