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County seeks Prop 1 behavioral‑health construction funds; board authorizes CAO to submit support letter
Summary
San Luis Obispo County applied for Behavioral Health Continuum Infrastructure Program funds to build inpatient and crisis‑residential treatment capacity; the board authorized the County Administrative Officer to sign a letter of support for a companion state grant for IST (incompetent to stand trial) diversion and restoration funding.
San Luis Obispo County officials told the Board of Supervisors on Jan. 21 that the county submitted a Behavioral Health Continuum Infrastructure Program (BHCIP) application under Proposition 1 and are pursuing partner funding to open local inpatient and crisis‑residential beds. The board unanimously authorized the county administrative officer to sign a letter of support for an application for California Department of State Hospitals (DSH) community restoration/IST (incompetent to stand trial) infrastructure funds.
Deputy Behavioral Health Director Frank Warren and analyst Morgan Terrell presented the application the county submitted in December. The proposal requests approximately $22 million in Proposition 1 bond funds to develop a new 16‑bed psychiatric health facility (12 adult beds, 4 youth beds) plus 8 adult crisis‑residential beds and 2–4 youth crisis‑residential beds. The plan targets gaps identified in the county’s behavioral health strategic plan: lack of youth inpatient and short‑term residential capacity and the need for step‑down beds that can prevent discharges to emergency shelter or out‑of‑county placements.
Morgan Terrell told the board the operating budget model projects roughly $10.6 million in first‑year operating expense (after buildout) and anticipates Medi‑Cal reimbursements, county realignment funds and other state and local sources will cover most of those costs. Staff estimated approximately $322,000 of projected operating costs would remain after the expected revenue and efficiency savings; staff said they anticipate further cost offsets from reductions in expensive out‑of‑county placements and transportation.
Warren told the board the BHCIP awards will be announced in May; a second funding round opens in May 2025. Because the county applied as part of a regional grouping, staff said the plan includes partnership agreements so that neighboring counties could also use capacity if needed.
Board action: The board voted unanimously to authorize the County Administrative Officer to sign a letter of support for a DSH IST diversion/community restoration application that would provide additional development funding for the proposed local behavioral health infrastructure project. Staff emphasized the vote only authorizes a support letter; acceptance of state award funds would return to the board for approval if awarded.
Why it matters: The county currently lacks local youth inpatient and short‑term residential treatment capacity and relies on out‑of‑county placements for some high‑acuity patients. The BHCIP proposal aims to keep more clients in‑county, reduce placement and transport costs, and expand treatment options for individuals with mental‑health and co‑occurring substance‑use disorders, including individuals temporarily found incompetent to proceed in criminal cases.
What’s next: Staff will wait for the May awards announcement and said that, if the county receives an award, the board will be asked to accept funding and authorize project design and construction phases. Meanwhile staff will continue coordination with the Department of Social Services and regional partners to align other youth‑continuum funds.
