BILL ANALYSIS Ó AB 989 Page 1 Date of Hearing: April 13, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 989 (Mitchell) - As Amended: March 21, 2011 Policy Committee: HealthVote:15-1 Human Services Vote: 6-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill specifies transition-age foster youth as a population that must be provided services through local programs funded through Mental Health Services Act (MHSA) dollars. Specifically, this bill requires that programs described in county MHSA plans, which are currently required to include services to address the needs of transition-age youth, also include services to address the needs of transition-age foster youth. FISCAL EFFECT Negligible net state fiscal impact. To the extent that counties must divert MHSA funding from existing local priorities to new services for transition-age foster youth, this bill has the potential to reduce MHSA spending on services for other target populations. Depending on how counties interpret and apply these provisions and the extent to which counties are currently providing services for transition-age foster youth, this bill could result in unknown cost shifts. Potential cost shifts would likely not exceed the low millions of dollars. COMMENTS 1)Rationale . According to the author, transition-age foster youth between the ages of 16 and 25 have high rates of mental illness. The author argues the state has a responsibility to address the needs of transition-age foster youth, given their significant incidence of mental illness and unique status as AB 989 Page 2 "children of the state." The author notes that while the MHSA directly references the need to fund programs that ensure that transition age youth ages 16-25 achieve self-sufficiency successfully, transition age foster youth are a subgroup of this population that warrants special treatment and elevated priority because they have uniquely acute mental health needs that separate them from their peers. 2)Mental Health Services Act (Proposition 63) . In November 2004, California voters approved Proposition 63, also known as the MHSA. The MHSA provides state funding for community mental health programs through a personal income tax surcharge of 1 % on the portion of a taxpayer's taxable income in excess of $1 million. This bill amends a provision of the MHSA which specified that MHSA-funded programs shall address the needs of transition age youth by further specifying that the programs address the needs for transition-age foster youth. The bill includes a statement that the Legislature finds and declares that this measure clarifies procedures and terms of the act. Such a clarification can be accomplished by a majority vote of each house of the Legislature. 3)Changes to MHSA Planning Process Recently Codified . Currently, counties are required to develop three-year plans that describe the programs and services they intend to offer. As part of the 2011-12 budget, AB 100 (Budget Committee), Chapter 5, Statutes of 2011 made changes to Section 5847 of the Welfare and Institutions Code. Specifically, AB 100 removed the requirement that DMH evaluate and approve a county's MHSA expenditure plan. This bill, as currently drafted, reflects the version of Section 5847 as it existed prior to these changes. The author stated intent is not to modify the provisions relating to plan approval. Technical amendments would be required in order to remove the unintended changes. 4)Concerns . The California Mental Health Directors Association (CMHDA) notes that transition-age foster youth are part of the target population for MHSA programs, but they indicate that programs and services should be developed based on community-identified priority and need. They indicate that they would support this bill if it was made voluntary for counties to include services to transition-age foster youth. Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081 AB 989 Page 3