Title
Receive a report on the Mental Health Services Act (MHSA) fund balance.
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
Receive a report on the Mental Health Services Act (MHSA) fund balance.
SUMMARY/DISCUSSION:
At the October 2019 Budget Committee meeting, the Health Department presented an overview of Proposition 63, the Mental Health Services Act (MHSA), and the current status of MHSA reserves. During the presentation staff indicated that new developments affecting MHSA fund balance would be presented to the Budget Committee, which occurred during the January 2020 meeting. It was requested at that time that the MHSA fund balance be reported on a quarterly basis. This report serves to provide the Budget Committee an update on the fund balance, additional information regarding the MHSA, and potential impacts on the fund balance.
The MHSA fund balance as of July 14, 2020 is $29,061,724. This represents an increase of $6,002,150 since this balance was last reported in May 2020. Fluctuations in this fund are common. This fund balance is within normal operating limits.
A comprehensive review of the MHSA 2017-18 through 2019-20 Three-Year Program and Expenditure Plan was recently completed. A combination of revenue actuals exceeding estimates and actual expenditures being below estimates enabled a transfer of funds from the Community Services & Supports component to the Capital Facilities & Technology Needs and Workforce Education & Training components, as well as into the Local Prudent Reserve. This transfer is intended to fund important capital improvement projects, training and staff retention initiatives, as well as minimize the risk of these funds being subject to reversion in the future. This transfer is included in the MHSA FY20 Annual Update Mid-Year Adjustment, which has been approved by the Board of Supervisors.
Spending in MHSA funded programs for fiscal year 2019-20 had been occurring as planned from July through ...
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