Budget Estimation and Rationale for the Mental Health Youth Program
Preston Burkhart
Southern New Hampshire University
IHP 670 Program Design Plan and Eval
Professor Ijewemen
August 6th, 2023
Purpose of the Budget and Approach to Budgeting
The goal of our program budget is to make sure that we spend enough money on the
resources our mental health program needs to run well and stay in good shape. The budget for
our program, which is estimated to cost a total of $1,181,000 for the first year, outlines the
financial resources that will be needed for it to be put into place. Our plan is based on a thorough
analysis of all of our necessary expenses, such as staff salaries, operating costs, and equipment
purchases. We weigh these costs against what we expect to earn, what we could save, and where
we can get money.
Resource Costs
Costs for resources include both in-house and bought resources that are needed to run the
program for a year. The majority of our in-house resources are our 7 staff members, whose
salaries and benefits add up to a total of $494,000 (U.S. Bureau of Labor Statistics, 2022). We
get help from outside sources, like the rented property that costs $3,750 per month and the
different consulting services we use. These resources are important because they will be used to
provide direct services, run operations, and make sure the program runs well.
One-Time Costs
Our program has one-time costs of $28,000, which include things like equipment costs
(totaling $18,000) and space renovation costs (totaling $10,000). These costs are important to
think about because they require a big investment upfront to get the program started. These
things are counted as one-time costs because they don't happen again. Instead, they are unique to
the first time the program is set up.
Ongoing Costs
Ongoing costs, which add up to $569,250 a year, include all of the recurring costs that are
needed to keep the program running. This includes the salaries and benefits of the staff, the cost
of renting the building (estimated at $45,000 per year) (Offices in Albuquerque, New Mexico,
n.d.), the cost of utilities ($12,000 annually) (Iota Communications, Inc., 2021), the cost of
maintaining equipment ($2,250 per year), and the cost of supplies and materials ($15,000 per
year). It's important to include these costs in our budget because they show how much money is
needed to keep the program going and making money.
Expected Sources of Income, Savings, and Funding
Our main source of income is expected to be billing revenue, which is estimated to be
$1,400 per patient per year, times 500 patients per year, for a total of $700,000 annually. This
number is based on the average cost of a cash-pay therapy session reduced by 30% to account for
the need to include low-income minorities for 20 sessions per year per person. We also plan to
apply for federal and state grants that are specifically for mental health. We are also trying to get
donations while staying within the legal limit of using 5% per year for operational costs. Given
these sources of income, we think that the program's income will keep us going into the second
year.
In addition to these direct sources of income, our program is expected to save society
money through lower healthcare costs, less money spent on law enforcement, and higher
economic productivity. This will have an even bigger impact on society as a whole. We expect
healthcare costs to go down because our program focuses on early intervention and prevention.
This could cut down on the need for later, more expensive interventions. If we make a
conservative estimate that our program will cut these costs by 10%, we can expect to save about
$50,000 per year. When it comes to spending on law enforcement, lower suicide rates and better
mental health, in general, can lead to fewer incidents that need law enforcement's help. This
means that the government will spend less on this area. In this case, you might be able to save up
to $30,000. Lastly, improving the mental health of young adults may help the economy grow. If
people are healthier and take part in the economy more, this could lead to more money being
made in the area. If we put this increase at 5%, it would mean that the economy would be doing
$40,000 more each year. When added up, these savings to society would amount to about
$120,000 per year. This, along with the direct income sources, shows how important and
financially sound our initiative is.
In short, this budget was made after a careful look at what was needed, what could be
made, and how our program is different from others. Its goal is to make sure that our program
will last and have the most impact on the people we want to help.
References
Iota Communications, Inc. (2021, May 1). What Is The Average Utility Cost Per Square Foot Of
Commercial Property? https://www.iotacommunications.com/blog/average-utility-cost-
per-square-foot-commercial-property/
Offices in Albuquerque, New Mexico. (n.d.). Property Shark. Retrieved August 3, 2023, from
https://www.propertyshark.com/cre/office/us/nm/albuquerque/
U.S. Bureau of Labor Statistics. (2022). Unites States Government. Retrieved August 3, 2023,
from https://www.bls.gov/
