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~~s additional funding to continue the level of services above what it would be if the entire deficit was met within the present budget structuze. Mr. Baxter stated that the reason for the present deficit and the paybacks relate to a basic philosophical decision made in 1968 to seek primary Federal and State funds without local support. He explained that Federal funds were of a time limited nature, and are considered "seed monies" with a declining ratio. Local monies are needed to meet the offset. If local monies are not available, you are then in a payback situation. He added that it was unclear of how long Mental Health had been operating with a deficit, but probably since 1974. That the Mental Health Board had suggested 19 specific activities to generate more funds and decrease the deficit. The basic issue now is that the Mental Health Program is and~has been inadequately funded at the local level, and until this situation is changed, the program will remain in a deficit situation. Mr. Baxter stated that of a total budget of 1.8 million dollars, the three counties were only putting up $162,pOp, which amounted to 8.9 percent. Commissioner Willhoit asked of the implementation of programs in other counties, if these counties did not appropriate additional funds at this time. He asked if the programs in Orange County were identifiable? Mr. Baxter replied that county programs had been indentified as well as the source of funding for the individual counties. The allocation of source is based on a formula of: Orange County 59 percent, Person County, 19 percent and Chatham County, 22 percent. Any cuts in services should be on the same formula. Mr. Baxter added that the Area Board is responsible for the 41 percent.payback and the deficit, if the Counties are not willing to assume the responsibility. Commissioner Walker stated that he felt Orange County and the other ccunties were not responsible for any deficit created by a public entity that is separate from Orange County. He stated that it was his under- .. .. standing that Orange Gounty could not legally do this and he requested an opinion from the County Attorney concerning the legality of this question. xe added that because Orange County participated in the program does not make them responsible for monies which were overspent. He also recom- mented that the County Board request the Local Government Commission to evaluate the Mental Health Program and make recommendations to the County as to appropriate action. Commissioner Pinney stated that the only consideration for this Board was if they would make an additional appropriation to Mental Health. Mr. Walker stated that he did not feel it was responsible government to take monies from one program to put into another program which had over- spent its appropriation. Upon questioning by Commissioner Pinney, the Finance Director stated that there was presently $940,000 in the Building Fund and $126,000 in the Contingency Fund which is currently being invested. Commissioner Gustaveson stated that the real issue is to take a look at this request as it relates to other programs. He stated that the Board might have to make some changes in terms of priorities. Mental Health is an important program and it is the responsibility of this Board to see that this is a viable program. Commissioner Walker charged that "the Mental Health Program in Orange County has been damaged because of the lack of monies and the lack of administrative skills necessary to set up an independent Health Department:" He stated "the Mental Health Board and the administrative staff has not presented reliable budget information to the County Board, and has not performed their duties in a business like manner." He spoke of the past action of the County Board in withdrawing from the District Health Department. He stated that before the Board could expect any help from him in correcting problems created in the Mental Health Program, the Board would have to (1) reverse its decision to withdraw from the District Health, (2) stop "rubberstamping" applications to pull down monies which cannot be matched, (3) stop ever projecting revenues, and use common sense judgment in these areas, (4) run a tight ship and be more responsible in collecting fees which are supposed to be