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Administration proposes eliminating $20M Mental Health Wellness Act allocation; Commission and advocates warn of service interruptions
Summary
The Behavioral Health Services Oversight and Accountability Commission told the Senate subcommittee the May revision would eliminate the commission's ongoing $20 million Mental Health Wellness Act allocation, a move DOF says is needed to address the state's fiscal shortfall.
Brenda Gralish, executive director of the Behavioral Health Commission, told the Senate Budget Subcommittee No. 3 that the governor's May revision proposes eliminating an ongoing $20,000,000 allocation from the Mental Health Wellness Act (MHWA) that the commission currently administers.
Commission testimony
- Gralish identified three items: reappropriation requests for early psychosis intervention (EPI+) and EMPATH units, and the proposed elimination of the $20,000,000 annual MHWA allocation. She told the committee the early psychosis project and EMPATH implementation efforts are at varying stages and that reappropriation extensions would allow grantees to complete launch activities.
- Commissioner Rachelle Chambers, representing lived‑experience perspectives, warned the committee that the proposed elimination would derail near‑ready grants for maternal/0‑5 initiatives, full service partnerships (FSPs), and peer respites. Chambers said the commission's work supports black and brown community providers and that removing funding would harm programs about to start.
Administration rationale and timing
- Department of Finance staff said the May revision proposes the MHWA elimination to ``utilize available Behavioral Health Services Fund to support existing general fund costs'' in light of the administration's $12 billion projected shortfall. DOF noted the Behavioral Health Services Act (SB 326 / Prop 1 implementation) establishes a separate Innovation Partnership Fund that will provide $20 million annually beginning in 26–27 for five years to support related priorities.
Concerns from advocates and LAO
- Dozens of testifiers in the public comment period and several advocacy organizations objected to the elimination, warning that peer respites, maternal mental‑health grants, and community‑based FSP technical assistance were at risk. The LAO said it had not yet completed review of the administrative portion of the Behavioral Health Services Fund and would provide additional comments.
Discussion vs. decision
The administration presented the elimination as a budgetary solution to close the general fund gap; no committee action or vote was recorded in the transcript. The Commission and advocates requested that the Legislature preserve the MHWA funds or identify alternative strategies that would not disrupt imminent launches.
Ending note
DOF emphasized that the Innovation Partnership Fund created by SB 326 (Prop 1 implementation) provides a future $20 million stream beginning in 26–27, but the Commission and community groups warned that the one‑year gap would interrupt projects already slated for awards and technical assistance.
