MHSA Revenues Grow Much Faster Than Other State and County Revenue Sources

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.

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