In September 2003, Governor Bill Richardson of New Mexico announced a major restructuring of Salud—the state's fully capitated Medicaid managed care system for physical and mental health services—and other state-funded behavioral health services. These reforms, intended to decrease time-consuming and duplicative administrative processes and to redirect financial resources from bureaucracy to services, hold much promise. The restructuring is the subject of two State Mental Health Policy columns in this month's issue. In the first column, Cathleen E. Willging, Ph.D., and Rafael M. Semansky, M.P.P., review the essential design issues that will determine whether the reforms will prove successful (see page 974). In the second column, Pamela S. Hyde, J.D., secretary of New Mexico's Human Services Department, describes plans for transforming stewardship for mental health in that state. Together, these columns illustrate that the changes taking place in New Mexico are moving along in a direction recommended by the President's New Freedom Commission on Mental Health (see page 983).