Governor Newsom’s Mental Health Plan Takes $700 Million from Mental Health Services for Homeless Support

California Governor Newsom’s mental health plan has proposed a significant overhaul of the state’s mental health system, aiming to reallocate over $700 million from annual county-provided mental health services to address homelessness.

Under Governor Newsom’s mental health plan, 92% of the funding would still go to counties, but with a shift in focus. (Photo: WPTV)

Governor Newsom’s Mental Health Plan

California Governor Gavin Newsom has proposed a significant overhaul of the state’s mental health system, aiming to reallocate over $700 million from annual county-provided mental health services to address homelessness.

A recent assessment by the California Legislative Analyst’s Office (LAO) sheds light on the potential impact of Governor Newsom’s mental health plan.

According to Fox News, Governor Newsom’s mental health plan focuses on revising the Mental Health Services Act (MHSA), which currently funds mental health services through a 1% tax on personal income over $1 million.

Presently, nearly all the MHSA revenue goes directly to counties, granting them the flexibility to allocate resources for various mental health services as they see fit.

Under Governor Newsom’s mental health plan, 92% of the funding would still go to counties, but with a shift in focus. The proposed allocation would prioritize full-service partnerships (FSPs) and housing interventions for the homeless.

Counties would be directed to spend 30% on housing interventions and 35% of the funding on FSP programs, with half of the latter directed at chronically homeless individuals.

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Critics Argue on Governor Newsom’s Mental Health Plan

While Governor Newsom’s mental health plan aims to address the pressing issue of homelessness in California, critics argue that it would result in significant cuts to current mental health programs, including those benefiting children.

The LAO’s analysis raises several key questions about the plan, emphasizing the need for evidence that the proposal will improve behavioral health outcomes for the entire population.

The report also questions why the MHSA is chosen for this reallocation rather than other funds and seeks clarification on how the proposal complements existing initiatives, like the Behavioral Health Bridge Housing Program.

Homelessness has become a major crisis in California, with the state harboring 30% of the nation’s homeless population, according to data from the Department of Housing and Urban Development (HUD).

The LAO’s report highlights that two-thirds of homeless individuals experience mental health issues, but the primary driver of homelessness remains income loss.

Governor Newsom’s spokesperson acknowledged the worsening homeless crisis and defended the proposed changes, stating that the Mental Health Services Act needs updating to address current challenges effectively. The spokesperson emphasized the need to prioritize housing for people with untreated mental illness and substance use issues.

However, concerns persist about reducing county flexibility in MHSA spending, as this could potentially limit local expertise and understanding of residents’ needs.

Critics worry that shifting more discretion to the state’s administrative body might not align with the intended vision of the program.

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