The hospital, whose first buildings were built in 1876, has faced dilapidation and other problems in the last few years as more patients with criminal backgrounds have been committed.
In the mid-1990's, the hospital was put under special supervision after reports emerged that female patients had been sexually assaulted by staff members, that criminal patients had escaped and that a patient had committed suicide while staff members slept.
Last month, the hospital suspended a nurse and eight other staff members for their involvement in assaulting and illegally restraining a patient, state officials said.
Last fall, a patient became pregnant while at the hospital, and Morris County prosecutors are investigating whether she was raped by another patient. In October, Erik Cruz, a convicted rapist, escaped, but he turned himself in a few days later.
Commissioner Guhl told the legislators that the new building, which is expected to cost $50 million to $80 million, would replace the Abell and Central Avenue buildings, which the patient advocate group that brought the 1977 lawsuit had cited as substandard and unsanitary. While the new building is under construction, two large temporary buildings will be brought in to create additional space for patient education and rehabilitation, she said. In the meantime, the department plans to spend $800,000 to build new bathrooms at Abell.
After the budget hearings on Monday, seven Democrats and Republicans on the budget panel sent a letter to Gov. Christine Todd Whitman endorsing the commissioner's plans.
Ms. Guhl assured them that the changes would bring overdue improvements.
''I am confident that both the short- and long-term census reduction plans, as well as the physical plant, staffing and programming improvements, will lead to a better therapeutic environment for our Greystone patients,'' Ms. Guhl told the legislators. ''You have my commitment to that end.''
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