MHSA revenues are growing much faster than other state and county revenue sources. Why is this true and what are its implications?
Mike Geiss, the fiscal consultant to the Mental Health Services and Accountability Commission (OAC), and County Behavioral Health Directors (CBHDA) recently provided a report to the OAC documenting MHSA (Mental Health Services Act/Proposition 63) revenues since its enactment in November 2004.
The key finding in this report is that revenues for 2016-17 will be $450 million higher for 2016-17 than for 2015-16 and that revenues for 2015-16 will be about $200 million higher than had been forecast when those state and county budgets were adopted last summer.
We have the percentages for each county and the methodology showing how the distributions were generated, so now everyone can see how much of a revenue increase their county or counties will be receiving – and how their relative shares may change over time under the current formula (which the state can change each year).
His report also documents the growth in MHSA revenues – from $900 million in the first full year of 2005-06 to $2 billion the current year of 2015-16. That reflects an 8% annual growth rate and is significantly higher than any other state revenue source as shown on this chart of historic tax yields.
Continue reading MHSA Revenues Grow Much Faster Than Other State and County Revenue Sources
Highlights from Governor’s 2016-17 Budget Proposal
On January 7th Governor Brown introduced his proposed 2016-17 budget.
State revenues are projected to be up about $6 Billion. This is the Department of Finance forecast which is more conservative than that of the legislative analyst. The actual budget to be enacted in June will be based on revised estimates due in May. Continue reading Highlights from Governor’s 2016-17 Budget Proposal
Economic Outlook Remains Positive, But Homeless Numbers Increase.
Time to Update the Mental Health Services Act
November 23, 2015
Last week two very important sets of numbers were released showing the disconnect between a healthy economy and the status of people who need behavioral health services.
The state’s Legislative Analyst presented an updated state budget forecast showing that state revenues will exceed the budget estimates by $3.5 billion for this year, a growing surplus for next year and for the next several years.
This is consistent with trends in reports we have provided showing significantly increased revenues for county behavioral health authorities. However, as we have reported in the past these revenue increases have not translated into expansion of services in very many counties. We noted that most counties had discontinued homeless outreach services during the recession and very few had restarted them in spite of two very good years of revenue growth with more forecast for next year.
That pattern is now reinforced by new homeless data showing that homeless numbers in California had risen over the past few years and we know that most of the homeless have significant behavioral health challenges and that chronic homelessness is almost always due to an untreated behavioral health condition (usually co-occurring mental health and chemical dependency).
Continue reading Time to Update the Mental Health Services Act