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Board receives MHSA annual update and approves 2023–26 plan as state shifts to Behavioral Health Services Act
Summary
The Board of Supervisors received and approved the Mental Health Services Act annual update for FY 2023–24 and discussed the coming transition to the Behavioral Health Services Act (BHSA). County staff announced initial program and staffing reductions to align with BHSA eligibility and the new 30% housing allocation requirement.
The San Luis Obispo County Board of Supervisors received and approved the Mental Health Services Act (MHSA) annual update covering fiscal activity and program outcomes, and discussed the state’s forthcoming transition to the Behavioral Health Services Act (BHSA), effective July 1, 2026.
Dr. Christina Rajlal, Division Manager for Prevention and Outreach Services in Behavioral Health, summarized FY 2023–24 results across MHSA funding components. Staff noted measured outcomes in full‑service partnerships (FSP) — programs for clients with highest acuity — where enrolled clients showed reductions in homeless days, jail days and psychiatric hospital days. Prevention and early intervention programs — including a middle‑school program and a campus wellness program — reported declines in self‑reported self‑harm and suicidal ideation and increased coping skills among participants.
Staff also outlined the BHSA transition, which changes the state funding structure and reduces the county’s flexibility under the current MHSA model. Under BHSA rules described by staff, a larger share of funds will be allocated to housing (the new BHSA includes a 30% housing component, with at least 50% of that housing money directed to those experiencing chronic homelessness) and new reporting and eligibility requirements will apply. Prevention activities funded under MHSA will be less directly allowable under the new formula, a change that prompted staff to announce an initial set of reductions.
Behavioral Health reported an initial $1.92 million in reductions to close an expected alignment gap: approximately $824,000 from internal staff reductions and $1.09 million from community‑based provider contracts and prevention activities that do not fit the new BHSA categories. Staff emphasized these were the first adjustments and that the department will continue planning, pursue “medical maximization” to draw additional revenue where possible, and submit an integrated plan for BHSA compliance to the state ahead of the deadline.
After presentation and public comment, the board voted to receive and approve the MHSA annual update and to continue receiving updates as staff develops the integrated BHSA plan and program realignment.
