Board weighs creating a cost center for new Behavioral Care Center; staff to refine budgeting approach

The Oklahoma County Budget Board discussed options for budgeting and tracking expenses for a new Behavioral Care Center, including creating a separate fund/cost center or capturing related line items inside general government and using contractual reimbursement arrangements.

Board members and staff debated how utilities, maintenance, telecommunications and other operating costs should be recorded and whether the operator should invoice the county on a reimbursement basis or the county should hold certain expenses directly. Purchasing and finance staff said a separate organizational cost center would make tracking easier but noted that some revenue (Medicare/Medicaid, grants) might flow directly to the operator and affect the county’s operational bottom line.

Members discussed practical tradeoffs: putting building‑level costs (HVAC, grounds, telecommunications) in a county cost center would allow clearer reporting of the facility’s total cost, whereas treating the operator as a contractor would keep many operational expenses off the county general fund. The board asked staff to prepare estimates showing both approaches so commissioners can decide whether to create a dedicated fund, an org‑cost center, or retain expenses in departmental budgets with transfers.

The board also said staff had applied for a grant through the Oklahoma Attorney General’s office to cover start‑up salaries: the amount referenced in the discussion was $900,000 over three years. No final action was taken; staff will return with cost‑center options, revenue‑flow scenarios (including Medicaid/Medicare reimbursement), and grant application status.

Next steps: Finance will prepare comparative estimates for (a) a discrete fund/cost center that captures all center-related operating costs and (b) a contractual approach where the operator bills the county or receives revenue directly; staff will also update the board on the AG grant application.