California restructures mental health funding under Proposition 1, shifting dollars toward housing and high‑need populations

California’s behavioral health financing will change substantially under Proposition 1, state and Legislative Analyst’s Office officials told the Assembly Health Committee on March 4. Proposition 1 recasts the Mental Health Services Act (MHSA) as the Behavioral Health Services Act (BHSA), creates a dedicated housing category and increases the state’s retained share of the millionaire’s tax to 10 percent, with the remaining 90 percent going to counties.

The changes “recast” the county funding buckets and add new reporting and planning obligations, Will Owens of the Legislative Analyst’s Office said. Counties must prepare three‑year integrated plans beginning now through June 2026 and, under the new schedule Owens described, the revised funding categories take effect July 2026; counties must submit their first annual expenditure report by January 2029.

Why it matt…