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Butte County behavioral health director warns new state BHSA rules will force cuts, add housing role
Summary
Butte County Behavioral Health Director Scott Kennelly told supervisors on Aug. 26 that California’s Behavioral Health Services Act will require the county to redirect existing Mental Health Services Act funds into narrower categories and to dedicate 30% to housing, likely forcing cuts to some local prevention and outreach programs.
Butte County’s behavioral health director, Scott Kennelly, told the Board of Supervisors on Aug. 26 that the state’s Behavioral Health Services Act (BHSA) — the voter-approved restructuring of Mental Health Services Act funding — will force significant program changes and new housing responsibilities when it takes effect July 1, 2026.
Kennelly, director of Behavioral Health, said BHSA reassigns existing MHSA revenues into three mandated buckets: behavioral health services and supports (35%), housing (30%) and full-service partnerships (35%). He told the board the county currently spends about 61% of MHSA money on services and supports and roughly 2% on housing, meaning the county would have to reallocate substantial funding and likely reduce or end some existing community programs.
“We will have to cut a substantial number of those programs to meet that requirement,” Kennelly said during…
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