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County officials say BHSA funding changes forced closure of local peer-support centers

Clearlake City Council · July 17, 2026
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Summary

A Lake County Behavioral Health Services liaison told the Clearlake City Council that state changes under the Behavioral Health Services Act narrowed allowable funding and increased the state share, forcing the June 1 closure of three local peer-support centers; staff said no layoffs occurred and described temporary service bridges.

Megan Morgan, community liaison for Lake County Behavioral Health Services, told the Clearlake City Council on July 16 that changes from the Mental Health Services Act to the Behavioral Health Services Act (BHSA) have narrowed local funding buckets and increased the state's retained share, forcing service changes in Lake County.

"As of June 1, we were forced to close our peer support centers," Morgan said, adding that the BHSA draws 35 percent of county allocations to full-service partnerships and specifically earmarks housing funding. She said the county now has a larger state set-aside (10 percent under BHSA versus 5 percent under MHSA), leaving "less money coming in than previously." Morgan emphasized the department did not implement layoffs and that peer-support staff were integrated into teams based on professional and personal expertise.

The county official described short-term measures to replace some site-based services: partnerships with Adventist Health for shower trailers and monthly food giveaways, a temporary drop-in location near the former Big Oak peer-support site, and a cooling center during extreme heat. Morgan said the county is exploring other evidence-based models such as the clubhouse model but did not promise implementation until feasibility is confirmed.

Council members pressed for budget detail. When asked "What is your total budget?" Morgan said she did not have an accurate figure available at the meeting and offered to follow up with specific numbers.

Why it matters: Peer-support centers were widely used and highly rated in community surveys, Morgan said, and closing them removed a familiar, low-barrier access point for people with lived experience. Council members and staff discussed how county partnerships could provide some interim services but emphasized the loss of the centers and the need for clearer funding figures.

The presentation was part of routine council business; Morgan said county staff will follow up with the council on precise budget figures and next steps for bridging service gaps.