BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 989 (Mitchell) Hearing Date: 8/25/2011 Amended: 5/27/2011 Consultant: Katie Johnson Policy Vote: Health 9-0 _________________________________________________________________ ____ BILL SUMMARY: AB 989 would require a county mental health program to specifically consider the needs of transition age foster youth when including services to address the needs of transition age youth ages 16 to 25. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Potential cost shifts unknown, potentially significant* Special** for foster youth services *See Staff Comments for estimate example. **Mental Health Services Fund _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. Existing law, Proposition 63, requires a county, when developing its county plan, to address the mental health services needs of transition age youth ages 16 to 25. This bill would additionally require a county, when developing the transition age youth part of its county Proposition 63 plan, to consider the mental health services needs specifically of transition foster youth. There are approximately 26,000 foster children in California, of which about 4,000 "age-out" of the system annually. In 2004, the voters passed Proposition 63, the Mental Health Services Act (MHSA), to provide funds to counties to expand services for individuals with mental illness through a 1 percent tax on personal incomes above $1 million. Counties are required to draft 3-year plans that, until recently, were required to be annually updated and approved by the Department of Mental Health (DMH), in order to receive MHSA funds. DMH informs counties of the amount of funding available to each of them annually and the AB 989 (Mitchell) Page 1 counties, in turn, submit expenditure plans that detail the number of individuals served and the cost per person. Over $1 billion were distributed to counties based on their plans in FY 2010-2011. This process changed with AB 100 (Committee on Budget), Chapter 5, Statutes of 2011. It removed the requirement for state approval of the annual updates of county mental health program plans and declares the intent of the Legislature to ensure continued state oversight and accountability of MHSA. It also appropriated up to $862 million of MHSA funds on a one-time basis for use in the Medi-Cal Specialty Mental Health Managed Care program, mental health services for special education pupils, and the Medi-Cal Early Periodic Screening Diagnosis and Treatment program (EPSDT). Instead of linking the plan to the amount of funds disbursed to a county, the State Controller would disburse the full amount of funds allocated to a county on a monthly basis. The counties would continue to develop a plan, but it would be approved by local mental health boards, not by the state. This bill would effectively encourage counties to direct more MHSA resources toward this specific group of individuals, although it would be at a county's discretion to 1) deem their current services to this population adequate, or 2) redirect funds within their existing county plan toward transition age foster youth. These fund shifts are unknown, but could be significant. For example, if counties were to collectively redirect $100 annually in MHSA funds for one cohort of 4,000 foster youth aging out of the system, the cost shift would be $400,000 from one purpose to another. Many counties currently recognize transition age foster youth as a high-risk group, but also identify other groups at risk too. The sponsors of this bill, the Children's Advocacy Institute at the University of San Diego Law School, released a report in January 2010, that reviewed whether or not MHSA-funded programs adequately reach transition-age foster youth. The report gave 26 counties received a failing grade and 7 others a D grade. AB 989 (Mitchell) Page 2