Title
Receive a report and oral presentation on the Mental Health Services Act (MHSA) fund balance.
Report
RECOMMENDATION:
It is recommended that the County of Monterey Board of Supervisors:
Receive a report and oral presentation on the Mental Health Services Act (MHSA) fund balance.
SUMMARY/DISCUSSION:
Background
The Mental Health Services Act (MHSA) was approved by California voters in 2004 and is funded by a 1% tax on personal incomes greater than $1 million per year. Funds are allocated on a monthly basis to counties based on a formula that accounts for population and other factors. Based on this formula, Monterey County's allocation is approximately 1.16% of all MHSA collections. This monthly allocation is an advance based on income tax payments with a true-up two years later. In accordance with Welfare and Institutions Code (WIC) Section 5847 and Section 3310 of California's Code of Regulations (CCR) Title 9, counties must produce a locally approved stakeholder-informed plan, known as the Three-Year Plan, describing how funds will be utilized.
Regulations on the Use of MHSA Funds
WIC Section 5892 states that 76% of MHSA funds received by the county must be allocated to the Community Services & Supports (CSS), 19% to Prevention and Early Intervention (PEI) programs, and 5% to Innovation (INN) projects. For CSS, WIC 5892 further provides that counties may transfer up to 20% of the prior five-year average CSS amount for Capital Facilities and Technological Needs (CFTN), Workforce and Education Training (WET), and Prudent Reserve (PR). All MHSA funds must be spent in accordance with the county's three-year plan.
For CSS and PEI, counties with populations over 200,000 have three fiscal years to spend the funds before they are reverted to the State, and for INN counties have three fiscal years to encumber funds with an innovation project and the life of the project to spend the funds.
CSS programs serve individuals affected by moderate to severe mental ill...
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