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Friday, April 26, 2024 | Back issues
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Ballot initiative would overhaul mental-health funding in California. Not everyone thinks that’s a good thing

Proposition 1 would require counties to spend such funding in different ways while also reducing local funds and adding new sanctions. That’s a key reason why one county is opposing the measure.

SACRAMENTO, Calif. (CN) — Proposition 1, a statewide ballot measure that voters will decide on in the March 5 election, would enact sweeping changes to California’s mental health system. But not everyone is thrilled with those proposed changes, with some mental-health advocates and even local officials speaking out against it.

Promoted by Democratic Governor Gavin Newsom, the measure seeks to tackle the state’s homelessness problem through a $6.4 billion bond to pay for housing for those struggling with addiction or other mental-health issues. It would also pay for more mental health care and drug/alcohol treatment centers and would change how funds from the Mental Health Services Act are used.

Supporters and opponents tend to agree on that much. But opinions diverge on the question of whether Proposition 1 is positive for the state — or whether it could actually achieve its lofty goals. After all, there’s a large gulf between Newsom’s “Treatment not Tents” messaging and the groups that oppose the proposition.

Proposition 1 is the moniker given to two bills signed last year by Newsom. While the governor has signed the bills, a vote by California residents is required to make them a reality.

Assembly Bill 531 — introduced by Assemblymember Jacqui Irwin, a Thousand Oaks Democrat — would create the Behavioral Health Infrastructure Bond Act of 2024. Some $6.4 billion in bonds would pay for permanent supportive housing and would help fund behavioral health treatment centers.

Senate Bill 326 — written by state Senator Susan Eggman, a Stockton Democrat — would make changes to the Mental Health Services Act. Under those changes, mental-health funding could go toward treating substance use disorders in addition to other mental health conditions.

Under Proposition 1, some $140 million of existing annual tax revenue that funds addiction and mental health treatment would shift from counties to the state, according to the California Legislative Analyst’s Office. The Golden State would also have about $310 million in annual bond payments for 30 years.

The proposition is endorsed by over 30 organizations, including the California Chamber of Commerce. “Homelessness is a crisis that’s obviously something California needs to deal with,” Jennifer Barrera, president and CEO of the Sacramento-based chamber, said in a phone interview with Courthouse News. “We see it in the street. We see it deteriorating our communities.”

The chamber has over 13,000 members statewide, representing every industry in the economy. In polls conducted by the chamber, those members have repeatedly listed homelessness as a top priority.

Homelessness is a complex issue, and Proposition 1 wouldn’t totally fix it, Barrera said. However, she thinks the measure provides the state with a strategy to start addressing key components of the problem, like substance abuse and mental health.

Addressing criticisms made by opponents of the measure, Barrera stresses that Proposition 1 will change funding priorities rather than cutting services. Money must be used for specific purposes, and counties will be held accountable. “The accountability for these funds is really important for these members,” she said.

Proposition 1 wouldn’t raise taxes, as the $6.4 billion would come from a bond issuance. Still, it would change how much money counties get in Mental Health Services Act funding. 

State programs currently get 5% or less of those dollars, while county programs get 95% or more. Proposition 1 would instead send at least 10% of that funding to the state, with the remainder going to counties.

Changes like that have led Paul Simmons, cofounder of the California Depression and Bipolar Support Alliance, to oppose Proposition 1. “It’s taking a billion dollars a year out of mental health services,” he said in a phone interview. “End of story.”

Currently, Mental Health Services Act funding for counties is used, perhaps unsurprisingly, for mental health services, according to the state Legislative Analyst’s Office.

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Proposition 1 would reduce the share of funding going to counties while also requiring counties to spend more on housing and services like employment assistance and education. That means counties would need to find other sources of funding to keep existing mental health services at their current levels.

Simmons said the proposition will take from programs that help people before they become homeless and instead use that money to treat those who already are unhoused. He also worries that a late change in the legislation that comprises Proposition 1 means more people will face involuntary treatment.

An unrelated bill signed into law by Newsom last year — Senate Bill 43, written by Eggman — updated the state’s conservatorship law, expanding the definition of “gravely disabled” and widening the scope of who can be involuntarily detained. “Our trust with the governor is zero,” Simmons said.

Supporters of Proposition 1 sometimes argue that opponents are ignoring the homeless crisis — but Simmons disputes that characterization. As he sees it, homelessness isn’t a mental health issue but instead an economic one.

Simmons acknowledges that many people with mental health issues are homeless — but he says that many others fall into the category of the working poor. He doesn’t see Proposition 1 impacting the housing crisis.

The Legislative Analyst’s Office appears to agree.

The nonpartisan office — a state agency that gives advice to the Legislature — estimates that almost 172,000 Californians were unhoused in January 2022. State officials estimate that the bond will enable construction of up to 4,350 housing units. That math means the program will provide homes for only around 2.5% of those facing homelessness.

“The number of housing units built by the bond would reduce statewide homelessness by only a small amount,” the legislative analyst states in a report.

Criticisms like these have led one county to publicly come out against the ballot measure. This month, the Placer County Board of Supervisors unanimously adopted a resolution opposing Proposition 1. 

Among the board’s concerns was the loss of funding under the Mental Health Services Act. Losing 5% of its Mental Health Services Act dollars would lower Placer County’s annual $16 million allotment by about $1.16 million each year. Statewide, counties would lose about $140 million annually.

Moreover, the board was concerned about the lack of additional money for substance use disorder and housing facilities. In addition to the drop in funding, Placer County could face sanctions under the ballot measure if the state determines the county isn’t meeting community needs.

“The bond funding would only cover the cost to build housing infrastructure, leaving counties to assume the cost of operations with no additional funding,” Joel Joyce, Placer County legislative and government affairs coordinator, said in a statement. As it stands, those county funds pay for care and drug or alcohol treatment for those with low incomes and significant mental health issues.

“We all agree there is a need to provide additional supportive housing, but this is a poor solution,” Supervisor Cindy Gustafson likewise said in a statement. It “will end up costing more money to administer, leaving less for actual programs and services.”

That concern is felt in other counties as well. Ryan Quist, behavioral services director for Sacramento County, said Proposition 1 would require the county to dedicate 30% of its Mental Health Services Act funding to housing. That means the county would need to shift some $27 million to meet the 30% requirement.

Quist emphasized that as a county employee, he can’t campaign either way on the ballot measure. Still, he said, “My community stakeholders are extremely concerned about the passage of Proposition 1.” And yet many other Californians seem to feel differently, with two-thirds of likely voters saying they plan to vote yes, according to polling in December by the Public Policy Institute of California.

Categories / Elections, Health, Regional

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