State commission adopts Innovation Partnership Fund framework amid debate over pace and scope

The Mental Health Services Oversight and Accountability Commission on Oct. 2 adopted a stakeholder-driven framework to guide the Innovation Partnership Fund (IPF), the Prop 1 program that will provide up to $20 million a year for five years beginning July 1, 2026. The vote followed hours of public comment and a lengthy commission debate over timing and strategic approach.

Melissa Martin Millard, acting deputy director of research and evaluation and program operations, told the commission the framework—version 4—codifies principles developed through months of community engagement and clarifies statutory interpretation and priorities. "We are requesting a vote to adopt the framework for IPF that was developed through a stakeholder engagement process," she said, adding that adoption keeps staff on track to issue an RFP early next year and award grants by July 1, 2026.

The framework defines innovation as “a new or adapted approach to solving persistent problems in California’s behavioral health system” and emphasizes equity, community leadership, sustainability, public–private partnerships and continuous quality improvement. Staff said IPF will accept a range of prevention and clinical proposals and that statutory priority populations include individuals who are chronically homeless, justice-involved or reentering from correctional facilities, youth in the child welfare system and adults at risk of institutionalization.

Several commissioners urged caution. Commissioner Carnivale recommended postponing adoption to allow the newly reconstituted commission to update its strategic plan and explore blended public–private financing that could multiply the $100 million allocation. "We could be anchored in billions of dollars of public–private financing," he said, arguing that rushing could lock the commission into a conventional grant structure.

Other commissioners and numerous public commenters urged the commission to move quickly to avoid budgetary risk. Staff warned that delays risk the funds being swept amid fiscal pressures and noted the procurement timeline required to make awards by July 1, 2026. Commissioner Larson said the framework is a first step and that detailed scoring and RFP mechanics will be debated in committees: "It is within those applications that we have further input," she said.

The commission voted to adopt the framework after public speakers—providers, community-based organizations and advocates from across the state—urged the commission to prioritize community-defined evidence practices, prevention and small-grant opportunities for grassroots organizations. Many commenters asked for procurement incentives so community-based organizations can lead proposals rather than only serve as subcontractors.

Next steps: staff will continue to refine the RFP language and bring an RFP outline to the Program Advisory Committee on Dec. 15 and to the full commission in January 2026. If the outline is approved in January, staff said they would aim to release the RFP in February and complete procurement so awards can begin July 1, 2026.

The commission’s adoption of the framework does not guarantee individual awards. Committee review and RFP scoring will determine which proposals are funded, and the commission reiterated that items may be revisited if committee feedback indicates needed changes.