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Placer County approves Behavioral Health Services Act plan, shifting 30% of funds to housing supports
Summary
The county approved a three-year BHSA integrated plan (FY 2026-29) that will allocate 30% of BHSA funds to housing interventions, expand full-service partnerships and require increased Medi-Cal alignment; staff said the plan was developed through robust stakeholder engagement and is designed to maintain services while meeting new state mandates.
Placer County supervisors on June 2 approved the county's Behavioral Health Services Act (BHSA) integrated plan for fiscal years 2026 through 2029, a change the county said will shift how state behavioral health funding is spent beginning July 1.
Amy Ellis, director of the Adult System of Care, and Shannon McKeown, the county's new BHSA coordinator, presented the plan and the major structural changes the state law requires. Key elements include a new requirement that 30% of BHSA funds be spent on housing interventions (including rental assistance, interim housing, capital development and supportive housing services), an expansion of full-service partnerships (FSPs) to include individuals with primary substance-use disorders and a 35% allocation for behavioral health services and supports (prevention, early intervention, workforce development and infrastructure).
Ellis and McKeown said the state-level shift replaces the previous Mental Health Services Act framework and imposes new billing and Medi-Cal certification requirements that limit some prevention activities county staff previously funded. They described an extensive stakeholder-engagement process, a 30-day public comment posting that ended April 30 and targeted outreach to underserved groups. Staff said they worked with providers to identify billable pathways and other funding sources to minimize service disruption and that the county does not need general fund contributions to implement the initial plan.
Supervisors thanked staff for the stakeholder work and asked for clarification on how the housing allocation will be used to help people move out of shelters into sustainable housing; staff said they plan to emphasize transitional rent subsidies first and seek HUD vouchers and other sustainable subsidies where possible. The board approved the integrated plan and authorized the chair and county officers to sign required certifications and subsequent amendments.
County staff emphasized the plan aims to balance required spending priorities with local needs and to preserve core services while navigating state-mandated changes to eligible expenditures.
