ORGANIZATIONAL-STRUCTURE AND STATE MENTAL-HEALTH EXPENDITURES

State mental health agencies (SMHAs) are characterized by a variety of organizational and fiscal arrangements. SMHAs may be part of a multi- functional agency or free-standing. They may be devoted exclusively to mental health or also responsible for other human services. States al so vary in terms of their SMHA-controlled expenditures on mental healt h services. This paper explores whether organizational structure affec ts expenditures on mental health. Consistent with some theories of bur eaucratic behavior, we find (subject to data limitations) that SMHAs a ppear to compete for funds with other human service agencies and that the bargaining position of the SMHA is affected by its position in the state bureaucratic organization.