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May revision would cut Mental Health Wellness Act grants, commissioners warned

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Summary

Commissioners and staff warned that the governor's May revision proposes removing $20 million in annual Mental Health Wellness Act funding, which staff said would eliminate recently launched grants for 0–5 maternal mental health, full service partnerships and peer respites and threaten the commission's long-term grantmaking role.

The Mental Health Services Oversight and Accountability Commission heard a May revision budget update and staff warning that the governor’s proposal would remove $20 million in ongoing Mental Health Wellness Act funding from the commission’s budget.

“The immediate consequence of this reduction is the elimination of grants focused on children ages 0 to 5, full service partnerships and peer respite,” Norma Pate, deputy director of administrative services and performance management, told commissioners during the meeting. She and other staff described three grant streams already developed or about to launch that would be affected: a $20 million 0‑to‑5 maternal mental health grant, a $20 million grant supporting full service partnership (FSP) partnerships, and a $20 million peer respite grant.

Commission staff said the three grants addressed gaps in the system: early childhood and maternal supports tied to CalAIM and BH Connect, FSP program strengthening and performance supports, and voluntary peer‑run respites as alternatives to emergency and inpatient care. “Eliminating this funding would pull resources directly from organizations serving birthing people during pregnancy, infancy, and early childhood,” Pate said of the 0–5 grant. Staff also warned the proposal could leave the commission without any permanent grant programs by fiscal year 2030–31 if the Wellness Act appropriation is eliminated and no replacement is secured.

Commissioners pressed staff for detail about which programs and counties would be affected if the cuts remain, and several asked staff to prepare legislative talking points and a short summary the commission could send to lawmakers. Commissioner comments and public speakers emphasized the potential effects on older adults, children and families, substance use services and culturally specific providers.

Staff outlined actions they were already taking: drafting a letter to the Assembly and Senate budget committees, coordinating advocacy with partner organizations, and flagging the commission’s current active grants and contracts on the agency website. Norma Pate also asked the commission to consider smaller re‑appropriation requests in the near term, including evaluation funds already recommended by staff.

Why it matters: Commission staff said the Wellness Act funds have been used to pilot service models and fill gaps in state behavioral health transformation. Commissioners said they view the grants as central to preserving and scaling community‑level programs that counties and providers could not otherwise fund on their own and urged rapid engagement with legislative leaders to preserve funding.

What happens next: Staff said they would circulate talking points and more detailed summaries of which counties and programs would be directly affected, and commissioners asked staff to return with updates as budget negotiations proceed. Public commenters and community groups urged the commission to center community‑defined providers and to include technical assistance and sustainability plans in any grant design.