BILL ANALYSIS
SENATE HEALTH AND HUMAN SERVICES
COMMITTEE ANALYSIS
Senator Martha M. Escutia, Chair
BILL NO: SB 1464
S
AUTHOR: Johnson et al.
B
AMENDED: As introduced
HEARING DATE: April 26, 2000
1
FISCAL: Appropriations
4
6
CONSULTANT:
4
Matosantos / ak
SUBJECT
Mental health services: funding
SUMMARY
Appropriates $20 million from the General Fund to the
Department of Mental Health (DMH) to fund existing county
demonstration projects, to serve homeless and recently
released mentally ill adults, and expand this demonstration
project to serve an additional three counties.
ABSTRACT
Existing law (the Adult and Older Adult Mental Health
System of Care Act, AB 34/Chapter 617, Statutes of 1999):
Provides "system-of-care programs" for severely mentally
ill adults and older adults in California.
Establishes three county mental health care demonstration
projects to provide community-based treatment, case
management and coordination of interagency services to
severely mentally ill homeless or recently incarcerated
adults.
Continued---
STAFF ANALYSIS OF SENATE BILL 1464 (Johnson et al.) Page
2
This bill:
Appropriates funds to continue the existing mental health
demonstration projects serving severely ill homeless or
recently incarcerated adults and expands this
demonstration project to serve an additional three
counties.
FISCAL IMPACT
$20 million appropriation from the General Fund to DMH.
BACKGROUND AND DISCUSSION
During the 1970s, state policy changes transferred a number
of mentally ill patients from state mental hospitals to
community-based treatment programs. Initially intended to
improve the quality of life and care of residents, these
policy changes have resulted in a lack of mental health
services for Californians. Demand for mental health
services far exceeds capacity. According to the County
Mental Health Directors Association, community-based
services are available to less than half those who need
them. The Association argues that as a result of the
number of untreated serious mental illness, California has
witnessed an increase in homelessness, police interaction,
exacerbated symptoms and other personal and community
problems.
According to the National Institute of Mental Health
(NIMH), over the course of a lifetime, approximately 20% of
Americans will experience a mental disorder or illness.
Although appropriate treatment and medication can often
mitigate the negative impact of mental illnesses, a Rand
Corporation study estimated a loss of $12 billion in missed
work days nationally each year due to depression alone.
Trends suggest that the managed care system also has
contributed to the decreased access to mental health
services. According to a report prepared for Congress by
the National Advisory Mental Health Council, in 1981, 58%
of employees with any health insurance had coverage for
mental health inpatient care comparable to that for other
illnesses. By 1993, only 16% of employees had such
coverage. As a result, employees experience higher
Continued---
STAFF ANALYSIS OF SENATE BILL 1464 (Johnson et al.) Page
3
out-of-pocket expenses for mental heath care than for other
health care.
Through the years, several policy initiatives have sought
to increase access to mental health services in California.
Among these initiatives is AB 34 (Steinberg), which in
1999 established a three-county demonstration program
intended to show that comprehensive services provided to
homeless or recently incarcerated severely mentally ill
adults can prevent crime and decrease homelessness.
According to author, these pilot projects, operating in Los
Angeles, Sacramento and Stanislaus counties, have been
credited with helping move more than 1,000 people off the
streets.
SB 1464 seeks to continue the pilot programs created by AB
34 and expand these programs to serve an additional 3
counties. This measure appropriates $20 million to DMH to
fund the pilot projects created by AB 34 in six counties.
The expanded program will target critical mental health
services to homeless mentally ill adults. The author
believes that by providing services and getting mentally
ill homeless people off the streets, SB 1464 will enable
program beneficiaries to achieve better lives and become
productive and responsible citizens.
Related Legislation:
Continued---
STAFF ANALYSIS OF SENATE BILL 1464 (Johnson et al.) Page
4
SB 1464 conflicts with AB 2034 (Steinberg), which
appropriates an unspecified amount to continue and expand
community mental health services. AB 2034 adds transition
youth and families living with a severely mentally ill
adult to the target population for the AB 34 services.
This bill allocates new funds to counties with existing
pilot projects to expand available services. AB 2034 also
makes additional funding available for other counties that
do not have an integrated services program but meet adult
system-of-care criteria. In addition, AB 34 requires that
counties use grants to expand existing integrated service
programs that meet the adult system of care criteria to
provide new services.
POSITIONS
Support: California Mental Health Directors Association
(if amended)
California Psychological Association
Jericho
Orange County Coalition for Mental Health
Oppose:None registered
-- END --