BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 76
                                                                  Page 1


          SENATE THIRD READING
          SB 76 (Budget and Fiscal Review Committee)
          As Amended March 14, 2011
          2/3 vote.  Urgency 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Contains necessary statutory changes to amend 
          appropriations contained in the 2011 Budget Act for the 
          Department of Mental Health (DMH).  Specifically,  this bill  :

          1)Shifts $862 million in Proposition 63/Mental Health Services 
            Act (MHSA) reserves to the state for support of the following 
            mental health programs administered by the DMH:

             a)   $183.6 million for the Mental Health Managed Care (MHMC) 
               program, beginning July 1, 2011, based on a formula to be 
               determined by the state in consultation with the California 
               Mental Health Directors Association (CMHDA);

             b)   $98.6 million for mental health services for special 
               education students, as required by the "AB 3632 Program" 
               (for 2011-12 costs), upon completion of the distribution of 
               funds for MHMC; and,

             c)   $579 million for the Early Periodic Screening Testing & 
               Treatment Program (to be allocated to counties on a 
               quarterly basis, upon completion of the distribution of the 
               first 50% of funding for County MHSA services). 

          2)Reduces the State Administration cap on MHSA funds from 5 to 
            3.5% and makes numerous reductions in state staff, eliminates 
            the review of County MHSA Plans by both the DMH and the 
            Oversight & Accountability Commission, and makes other changes 
            to the program to achieve savings at the state level.

          3)Specifies that MHSA funding for counties will be distributed 
            as follows:

             a)   50% of the funding (up to $488 million) upon completion 
               of the distribution of funds for AB 3632 Program services, 
               beginning August 1, 2011; and,

             b)   50% on a monthly basis by April 30, 2012.








                                                                  SB 76
                                                                  Page 2




          4)Adds an urgency clause allowing this bill to take effect 
            immediately upon enactment.
           
          FISCAL EFFECT  :  This bill implements the policy changes 
          necessary to achieve $862 million in General Fund savings, as 
          contained in the 2011-12 Budget package.


           Analysis Prepared by  :   Andrea Margolis / BUDGET / (916) 
          319-2099


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