Gavin Newsom’s mental health plan could strip more than $700 million from services, report says (calmatters.org)

Gov. Gavin Newsom speaks at a news conference announcing a proposed a 2024 ballot initiative to improve mental health services across the state, at Alvarado Hospital in San Diego, on March 19, 2023. Photo by Adriana Heldiz/The San Diego Union-Tribune via AP, Pool

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A major proposal from Gov. Gavin Newsom to overhaul the state’s behavioral and mental health system is likely to take nearly $720 million away from services provided by county governments annually, according to a new analysis from the Legislative Analyst’s Office.

Although that money would be reallocated within the system, in part to house homeless individuals with severe mental illness and addiction disorders, the report authors note that Newsom and key legislators supporting the proposal have neither provided a complete justification for the changes nor have they published an analysis on how the changes may “negatively impact current services.”

“Consequently, as the Legislature considers the proposal, we recommend asking the administration certain questions to assess whether the proposal is warranted,” the report states.

Newsom wants the Legislature to put his proposal before voters next year in tandem with a $4.68 billion bond measure to add psychiatric treatment beds. It would change how the state allocates money under the Mental Health Services Act, which levies a 1% tax on income above $1 million to fund behavioral health services.