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
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          ____
          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.
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                            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
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          ____

          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 








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          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.













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