NORWICH – A recently announced 2007 deficit reported by the Chenango County Mental Hygiene Services Department understated the amount by $151,000, leaving this year’s budget in the red by nearly $400,000.

Director Mary Ann Spryn said Wednesday that she remains “optimistic” that the New York State Department of Health would refund all but approximately $45,400. The remaining amount is the result of Medicaid take-backs from 2004 and 2005 that the New York State Office of Alcoholism & Substance Abuse Services considered overpayments based on the county’s revenues, she said.

The 19-year department veteran told members of the county’s Finance Committee last week that low service numbers, inexperienced clinicians and changes in Medicaid billing procedures led to the losses in mental health programs.