California’s Assembly votes for ballot measure that would change how mental health care is funded

SACRAMENTO, Calif. — California lawmakers voted Tuesday to put a proposal before voters next March that would overhaul how counties pay for mental and behavioral health programs in an effort to address the state’s worsening homelessness crisis.

The bill authored by Democratic state Sen. Susan Eggman was passed by the state Assembly and will need one more vote in the Senate if it is to make the ballot.

In 2004, voters approved a special tax on millionaires to help pay for mental health programs. Money from that tax, one of the most unpredictable funding sources in the state, has mostly gone to county governments to use as they see fit under broad guidelines.

Democratic Gov. Gavin Newsom wants changes to restrict how local governments can use that money, with an emphasis on mental health and drug and alcohol use programs. Under his plan, two-thirds of revenue from the tax would pay for services for people who are chronically homeless and with severe mental health issues and unhealthy drug and alcohol use. Counties would also be required to use the same method to track and report spending.

“The intersection of behavioral health disorders and homelessness is playing out every day on our streets, in our schools, in the smallest of rural communities, in our largest cities,” Democratic Assemblymember Jim Wood said before voting for the bill. “This provides Californians with an opportunity to weigh in on how to address this.”

The governor also wants voters’ permission to borrow $6.3 billion to pay for 10,000 new mental health treatment beds, up from an initial proposal of $4.6 billion, an increase that came after a coalition of mayors urged him to deliver more money to help cities address the homeless crisis.

California is home to more than 171,000 homeless people — about 30% of the nation’s homeless population. The state has spent more than $20 billion in the last few years to help them, with mixed results.