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Health and Human Services Agency, Mental Health Division, recommending the Board approve and authorize the Chair to sign attached Budget Transfer Request increasing the use of Mental Health Fund balance by $1,898,284 and increasing appropriations by $1,898,284 to re-establish a Prudent Reserve for Mental Health Services Act Funding, in accordance with Welfare and Institutions Code Section 5847(b)(7), in the amount of $1,898,284. (4/5 vote)
FUNDING: Mental Health Services Act State Funding.
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Fiscal Impact/Change to Net County Cost
There is no Net County Cost associated with this Agenda item. This is simply an accounting transaction moving funds out of unrestricted fund balance into the prudent reserve resulting in no net effect to the budget.
Background
The passage of Proposition 63 (now known as the Mental Health Services Act or MHSA) in November 2004, provided for the California Department of Mental Health to provide increased funding for mental health services by imposing a one percent (1%) income tax on personal income in excess of $1 million. MHSA addresses a broad continuum of prevention and early intervention service needs, and provides funding for the necessary infrastructure, technology and training elements to support county mental health programs, and monitor progress toward statewide goals for children, transition age youth, adults, older adults, and families.
As outlined below, the County is required to hold a Prudent Reserve of MHSA funding. The Prudent Reserve was established in Fiscal Year (FY) 2008-09 (File ID 08-0821). In FY 2013-14, the reserve was errouneously budgeted and the funds rolled into the Mental Health unrestricted fund balance. This Agenda Item corrects the error by re-establishing the Prudent Reserve.
In accordance with Welfare and Institutions Code (WIC) Section 5847 (a) and (b), each county mental health program is required to prepare and submit a three-year program and expenditure plan, along with annual ...
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