Neighbors for Neighbors Recap: California Prop 1
Written by: Marlena De Castro, Community Education Specialist
In June 2024, our Neighbors for Neighbors library meetup unpacked the recently passed legislation: CA Prop 1. Karen Kern, Deputy Director of the Behavioral Health Division in Santa Cruz County, and Julian Crown, Policy and Research Associate for Housing Matters, demystified CA Prop 1 and how it may impact behavioral health and homelessness services in California.
California Proposition 1 is comprised of two-parts, improving access to behavioral health services through funding for treatment facilities and housing support through changes to the Mental Health Services Act (Cal Budget Center). Prop 1 amends the California’s Mental Health Services Act, and creates a $6.38 billion general obligation fund.
Background on the 2004 Mental Health Services Act (MHSA):
At the Capitola library, Karen Kern explained, “In 2004, California voters passed Prop 63: the Mental Health Services Act (MHSA), referred to as the ‘Millionaire’s tax’ because it taxes 1% of annual income over $1M. This funding is reserved exclusively for mental health, and 90% of this tax goes to counties to use for mental health services.”
Karen reflected, “This funding is very valuable because it is flexible – counties are able to use it as they see fit.”
Flexible Spending (MHSA)
Currently, a percentage of this funding is being spent on ‘innovation projects’ in our county, including the creation of a 24/7 mobile crisis unit. In response to rising rates of homelessness, California lawmakers have adjusted the formula of the ‘Millionaire’s tax’ to better allocate funding for homeless services and housing.
CA Prop 1 mandates that 30% of what counties receive from MHSA go to housing. This does NOT increase the amount of funds that counties receive for mental health services, what is does is mandate how the existing funding is spent. According to Karen, “Many counties were already using these flexible funds for housing, because that is where the need has been.”
Some worry that CA Prop 1 may force counties to fund new housing by cutting funding for existing behavioral health services and programs. As Karen pointed out, this proposition reallocates funding, but does not create any new revenue streams. “As we move forward as a state towards more comprehensive care for those who need it, our investments in housing and behavioral health services must be complementary,” reflected Julian Crown.
The Behavioral Health Bond Measure:
The bond is set to fund behavioral health treatment and residential facilities, as well as supportive housing for veterans and individuals at risk of or experiencing homelessness with behavioral health challenges (Cal Budget Center.)
Deputy Director Karen Kern explains, “The bond measure provides funding so that we can increase infrastructure for mental and behavioral health services, new treatment facilities, and new beds. This bond is also meant to provide funding for supportive housing, with a division of approximately 70% dedicated to healthcare facilities and 30% dedicated to supportive housing.”
CA Prop 1 can be seen as evidence that our lawmakers recognize we have historically underinvested in permanent supportive housing, a model that is crucial in addressing behavioral health needs. Julian Crown remarks, “When someone is unhoused, it can be extremely challenging to access the care and personal stability that empowers people to address their behavioral health conditions.” Housing is a crucial element in treating behavioral health conditions, and it must be used as a complement to behavioral health services.
Next Steps
Now it is time for us to rally around the supportive housing and improved behavioral health services that this proposition makes possible. “We as a community need to really show up and show our support for supportive housing. If we want to see the progress that these bond funds can make through building supportive housing, we must show our support when opportunities are available,” Julian urges.
To find out about upcoming developments and how you can support in our community, visit: Affordable Housing Tracker from Housing Santa Cruz County.
To learn more about CA Prop 1, visit: https://calmatters.org/politics/elections/2024/03/election-result-proposition-1/
To join in on the conversation with your neighbors, come to our next Neighbors for Neighbors meetup.
Sources:
https://calmatters.org/politics/elections/2024/03/election-result-proposition-1