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Board approves MHSA plan update after tense debate over $110 million revenue shortfall
Summary
The board approved an update to the Mental Health Services Act plan on a 4–1 vote after Health Care Agency staff reported an estimated $110 million shortfall in MHSA revenue and outlined program reductions; supervisors demanded clearer transition plans and line‑item details for services being cut.
The Orange County Board of Supervisors voted 4–1 to approve an update to the county’s Mental Health Services Act (MHSA) plan after a lengthy exchange in which supervisors sought clarity about program cuts and funding assumptions.
Vice Chair Katrina Foley pressed the Health Care Agency for specifics after staff said the county faces an approximately $110,000,000 shortfall in MHSA revenue and that several prevention and community‑based programs will end or be reduced effective June 30. Behavioral Health Director Ian Kemmer told the board that the shortfall reflected recent quarterly revenue updates and that the county is exploring ways to transition clients to Medi‑Cal billing or other sources where possible.
Foley said the board needs more detailed documentation showing what each cut funds and how clients will be transitioned. “Millionaires are not moving out, just to be clear. That is a myth,” she said during discussion, pressing staff on revenue assumptions and timetables for additional analyses. Staff said the revenue forecast was updated this month and that MHSA is a volatile funding source dependent on millionaire tax receipts.
Kemmer explained that the reductions reflected lower MHSA tax receipts and that some services may be supported by other county or Medi‑Cal funding streams, but he acknowledged the agency must provide a clearer plan for transitioning affected clients and programs. He said the county’s analysis prioritized legally mandated services and programs that could be sustained through billing.
Several supervisors and the vice chair asked for a more granular report — an itemized analysis showing what each contract and program provides, which populations would be affected, and how the county will backfill or transition services. Foley requested an analysis for the board offices that lists program functions, populations served and transition plans for clients who lose MHSA‑funded services.
The board approved the MHSA plan update on a 4–1 vote; one supervisor voted against the item. Staff said they would provide further detail to the board about program impacts, alternatives and replacement funding strategies as they finalize the transition plan.
