Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Lawmakers weigh 988 center designation and future of Medi‑Cal mobile crisis benefit as counties warn of cuts
Summary
DHCS proposed trailer‑bill language to designate 988 centers and requested state and local assistance funding; it also proposed making the ARPA‑funded Medi‑Cal mobile crisis benefit optional by county after federal match ends, prompting county and provider testimony warning of service losses and urging sustained statewide funding.
Department of Health Care Services officials told the subcommittee they intend to create a statewide designation process for California's 988 suicide and crisis lifeline centers, strengthen performance standards, and seek additional state and local assistance to support center operations and anticipated workload increases.
"We are proposing that this process be implemented no sooner than 10/01/2027," Deputy Director Paula Wilhelm said, describing a DHCS budget change proposal that includes local assistance authority of roughly $19.46 million annually plus state staffing and consultant support for the designation work and ongoing oversight.
DHCS also proposed trailer‑bill language to preserve the mobile crisis services benefit after the temporary ARPA enhanced federal match expires. Under DHCS's draft, the benefit would become optional for counties beginning April 1, 2027, so counties choosing to opt in would assume the non‑federal share and the state would no longer require universal coverage. DHCS said it would work with counties to encourage continuation and evaluate design changes to make coverage feasible where demand and capacity differ.
Counties and provider organizations gave concrete examples of program impact. "Mobile crisis is not just the moment that the team arrives in the field," said Elise Jones, Director of Lake County Behavioral Health. "It is a clinical crisis intervention that includes assessment, de‑escalation, crisis planning, warm handoffs and follow‑up." She warned rural counties could not afford the service if the state stopped predictable funding.
San Diego County reported 44 mobile crisis teams at an annual cost of about $24 million a year; officials said an opt‑in model that shifts the state share to counties would force deep reductions and degrade school‑ and youth‑focused responses. Nonprofit providers (Seneca, Sycamores, Didi Hirsch) described high stabilization and diversion rates, reduced law‑enforcement involvement and fewer emergency‑department visits when mobile teams are available.
988 center operators said contact volume has grown rapidly — comparing January 2025 to January 2026, calls rose by ~37% and texts/chats by ~26% — and warned that the centers' current funding and a recent reduction of the surcharge from 8¢ to 5¢ undermines capacity to meet SAMHSA and state performance standards. 988 center leaders requested a funding methodology and a larger appropriation (centers cited a $105M figure to meet immediate need) rather than the modest increase DHCS proposed in its BCP.
Committee members probed whether the 988 surcharge can be adjusted (statute allows up to 30¢) and how mobile crisis responses initiated through 988 would be identified for reimbursement. DHCS said it plans to develop methodologic and data approaches to link 988‑originated mobile crisis encounters to reimbursement and to consult with Cal OES, which sets the surcharge.
Outcome: the committee left the 988/mobile crisis items open and requested additional consultation with Cal OES and more detailed fiscal estimates of the costs to sustain 988 centers and mobile crisis services under different coverage models.
