Committee opposes proposed budget change that would make Medi-Cal mobile crisis teams optional for counties

The Legislative and External Affairs Advisory Committee recommended that the full Mental Health Services Oversight and Accountability Commission oppose a proposed budget change in the governor's January proposal that would shift the Medi-Cal community-based mobile crisis intervention benefit from a mandated statewide medical benefit to an optional county benefit.

Deputy Director Kendra Zoller described the proposal as a cost shift that would require counties to absorb significant new costs. Presenters and county representatives provided examples: the Los Angeles Department of Mental Health estimated an annual cost increase of approximately $8.5 million for that county, and CBHDA offered a rough early statewide estimate of about $130 million. Staff warned the change would be particularly harmful to rural and underserved counties and risk rolling back years of investment in mobile crisis infrastructure.

Committee members and public commenters emphasized the service's role in diverting people from jails and emergency departments and urged the commission to oppose the cut and work through budget committees to retain the benefit as a mandatory Medi-Cal service. The committee moved and seconded a recommendation to oppose the proposed change and to direct staff to communicate opposition to the Legislature and governor; the motion passed by roll call.

Next steps: staff will draft and send a letter of opposition and work with partners as the budget moves through the May revise and final budget negotiations.