Key points about Newsom’s $4 billion mental health bill:
California Lawmakers Seek to Overhaul Behavioral and Mental Health System
Gov. Gavin Newsom (D-CA) and California lawmakers are embarking on a mission to revamp the state’s behavioral and mental health system. As part of this effort, they are proposing a $4.68 billion bond measure to increase the availability of treatment beds. To discuss the newly amended language and the potential impact of these changes, a joint committee hearing will be held on Tuesday.
Newsom’s Mental Health Reform Legislation
Earlier this year, Gov. Newsom introduced a bill to reform the state’s mental health system, aiming to update a 20-year-old ballot initiative. In 2004, voters passed the Mental Health Services Act, which imposed a 1% tax on income over $1 million to fund mental health resources. Newsom’s bill seeks to allocate 30% of the funding from this tax towards housing for homeless individuals with mental illness and addictions.
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Over the past five years, the tax revenue has generated a significant amount, totaling over $20 billion, with $4.8 billion raised last year alone. Newsom’s proposal redirects the income tax revenue from the 2004 act and proposes a $4.68 billion bond measure to expand treatment beds for those struggling with mental health.
What Do the Mental Health Amendments Entail?
Proposed by Newsom and introduced by Democratic state Sen. Susan Eggman as Senate Bill 326, the amendments aim to modernize California’s behavioral health system. Democratic Assemblywoman Jacqui Irwin also introduced AB 531 as part of a joint package with Newsom and Eggman to provide additional mental health resources. If passed, the bill would create state-of-the-art residential settings with thousands of new community behavioral health beds, catering to Californians with mental illness and substance use disorders, potentially serving over 10,000 people annually.
Under the amendments, California counties would allocate two-thirds of the tax revenue towards 24/7 mental health services, allowing for the transfer of funds between housing and prevention. Additionally, 51% of the early intervention funds would be dedicated to children and youth prevention programs. The legislation also proposes renaming the Mental Health Services Oversight and Accountability Commission to the Behavioral Health Services Oversight and Accountability Commission, while requiring the state’s department of health to establish housing interventions that offer various social services.
Critics’ Concerns
Some critics argue that the proposed amendments would result in reduced funding for existing programs. The Legislative Analyst’s Office (LAO) released reports expressing concerns about the potential negative impact on mental health services. The LAO report stated, “On net, we find that whether the current level of county MHSA spending — particularly at the county level — on children and youth services would be maintained is uncertain.” The LAO also criticized Newsom’s plan to reduce oversight, suggesting that the legislature should have more control over the bond measure and its allocation.
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Next Steps
The Assembly’s Housing and Health committees will convene in Sacramento at the state Capitol on Tuesday to discuss the future of the reform bill, following the Senate Health Committee’s information hearing last week. To secure a spot on the March 2024 ballot, the measure would require the support of two-thirds of California lawmakers. Irwin and Eggman’s bills would be combined into a single ballot measure to transform the MHSA, and a majority of voters in California would need to support the bill for it to become law.
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