Ventura County OKs $11.2M State Grant to Start Community-based Diversion for Some Felony Defendants

Ventura County supervisors on April 8 unanimously ratified an $11,217,000 grant agreement with the California Department of State Hospitals to fund local pretrial felony mental health diversion services from July 1, 2024, through June 30, 2029.

The grant will pay for community-based treatment alternatives for felony defendants who have been found incompetent to stand trial but who are not charged with the most serious offenses and may be appropriate for permanent diversion. "This funding is intended to basically stand up that program," said Dr. John Shipper, chief of forensics, justice and reentry services in the county behavioral health division, who described the effort as part of a larger remediation following changes the state implemented in 2022–23.

The county presented the program as a targeted, low‑volume intervention. "We would anticipate probably 10 to 12 defendants being treated in this manner," Shipper said, adding that candidates will be screened for risk and admitted to the program only after court review and input from prosecutors and public defenders. Dr. Loretta Denning, Ventura County behavioral health director, told the board the program builds on earlier pilot work and on a newly created division that handles competency and reentry issues.

Supervisors pressed state policy concerns during the discussion. "It seems to me this is a workaround on state mandates and I'm just generally interested in whether this is an unfunded state mandate being pushed down to counties," Supervisor John Gurel said, asking county leaders to pursue reimbursement strategies for state mandates. Shipper and Denning said the county has already formed an interagency effort and is working to avoid financial penalties associated with state limits on hospital admissions.

Background: State hospital policy created a baseline cap on admissions of felony defendants found incompetent to stand trial. Ventura's baseline was set at 80 admissions. The county reported it initially stayed under that cap, then exceeded it the following fiscal year; the exact overage was under review by the state at the time of the presentation, with county and state figures differing by one bed. County staff said the penalty for exceeding the cap is likely in the range of about $100,000 to $150,000, and the state had allowed some flexibility to apply savings from contracts to address earlier penalties.

What the board approved: The board voted unanimously to ratify the department's authorization to sign the agreement accepting the state grant and to begin implementation activities. Supervisors noted the program's limited scope and asked staff to seek reimbursement strategies for what one supervisor called an unfunded state responsibility.

Why it matters: County and local criminal justice partners have been under pressure to reduce long stays at state hospitals and to find community alternatives for people with serious mental illness. The state-funded program directs resources into local diversion and treatment, but it occurs amid broader concerns by county leaders about state policy changes and potential unfunded costs shifting to local budgets.

What's next: Behavioral health staff and criminal justice partners will refine screening, contracting for community treatment services, and court coordination. The board asked staff to report back on program implementation and on county efforts to seek relief or reimbursement for state-imposed caps and penalties.