Health Department director Dr. Suzanne Dandoy may have had the last word in a seesaw debate about which department should control money for active treatment of the mentally ill and mentally retarded.

Medicaid controls the money, but the legislative fiscal analyst's budget recommends the money be transferred to the divisions of Mental Health and Services to the Handicapped in the Department of Social Services. Speakers at the Joint Social Services and Health Appropriations Committee have debated the issue back and forth.But, according to Dandoy, she and Norm G. Angus, director of the Department of Social Services, believe the money should stay with Medicaid, which can contract with the Social Services divisions when a client leaves a nursing home for a community setting. Lawmakers now will have to decide what should become of the money.