Newsom puts bond to transform mental health system on March 2024 ballot
- GOVERNOR’S OFFICE
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On Thursday, Gov. Gavin Newsom, accompanied by Legislative and local leaders, families, advocates, veterans, and health care professionals, signed Senate Bill 326 (Eggman, D - Stockton) and Assembly Bill 531 (Irwin, D - Thousand Oaks) which Newsom’s office said will collectively will transform California’s mental health and substance use disorder treatment systems for the first time in decades.
Advocates said these reforms re-focus billions of dollars in existing funds to prioritize Californians with the deepest mental health needs, living in encampments or suffering the worst substance use issues.
The $6.38 billion bond will provide funding to build more than 11,150 new behavioral health beds and housing and 26,700 outpatient treatment slots — capacity that will touch many tens of thousands of people’s lives every year — filling critical needs across the state for homeless Californians with severe behavioral health issues, to kids suffering from depression, and everyone in between.
Recent polling from the Public Policy Institute of California found that 87% of Californians say there is a mental health crisis in the United States.
“These reforms, and this new investment in behavioral health housing, will help California make good on promises made decades ago. We see the signs of our broken system every day — too many Californians suffering from mental health needs or substance use disorders and unable to get support or care they need. This will prioritize getting people off the streets, out of tents and into treatment,” Newsom said.
This action — which Newsom’s office called a “historic transformation” — comes after months of engagement with stakeholders across the state: people and families with lived experience, health care professionals, children and youth groups, veterans organizations, schools and school administrators, businesses, labor leaders, mental health and equity advocates, first responders, and local officials.
Senate Bill 326 modernizes the Mental Health Services Act to address today’s behavioral health system and demand for services.
These reforms expand services to include treatment for those with substance use disorders, prioritize care for those with the most serious mental illness, provide ongoing resources for housing and workforce, and continue investments in prevention, early intervention, and innovative pilot programs.
“The Mental Health Services Act has been a great success — but after nearly 20 years it’s time to update it in a manner that is consistent with reforms in health care coverage and our increased understanding of behavioral health,” said SB 326 Author & Senate Health Committee Chair Senator Susan Talamantes Eggman. “The new Behavioral Health Services Act will drive resources to those with the greatest needs, including those with substance use disorders, and provide for real accountability with a focus on outcomes. Paired with Assemblymember Irwin’s essential bond, these new and restructured investments deliver on exactly what Californians deserve to address this crisis of behavioral health and homelessness. I’m grateful to this Governor for his commitment to those suffering and for his laser focus on critical reform.”
Senate Bill 326 reforms the system of care to prioritize what Californians need today with new and increased accountability for real results for all families and communities.
Assembly Bill 531 includes a $6.38 billion general obligation bond to build 11,150 new treatment beds and supportive housing units as well as outpatient capacity to help serve tens of thousands of people annually — from intensive services for homeless people with severe mental illness, to counseling for kids suffering from depression, and everyone in between.
This investment would be the single largest expansion of California’s behavioral health treatment and residential settings in our state’s history — creating new, dedicated housing for people experiencing or at risk of homelessness who have behavioral health needs, with a dedicated investment to serve veterans.
These settings will provide Californians experiencing behavioral health conditions a place to stay while safely stabilizing, healing, and receiving ongoing support. Included in the bond is a $1 billion set aside specifically for veterans’ housing.
“For decades we have chronically under-resourced our community-based safety nets, which has now led us to a humanitarian crisis for which we don’t have the adequate tools to address,” said California Medical Association President Donaldo Hernandez, MD, FACP. “A sustainable model of care delivery for our residents struggling with serious mental health and substance use disorders must include, not only expanded access to services, but also stable and reliable access to housing. I applaud the governor for continuing to remove barriers while working to assure that we can overcome the gaps that exist in serving those suffering from mental health and substance use disorders.”
On Thursday Newsom also announced the “California Mental Health Movement,” which is his sweeping plan to address the mental health and substance use disorder crises happening across the state — impacting Californians in every community.
“The mental health crisis — especially amongst youth– is the most significant public health concern of our time. I’m so proud of our nation-leading mental health movement and ongoing work to transform the state’s behavioral health system in a way that is comprehensive, holistic, and intentionally focused on recognizing the humanity in each and every Californian,” Newsom said.
The multi-year “California Mental Health Movement” encompasses more than $28 billion and focuses on real results and increased accountability, includes four key pillars:
Treatment and housing for those who need it most: $10.9 billion to create approximately 24,800 beds/units. It also creates 45,800 outpatient treatment slots for Californians with behavioral health issues across the spectrum — everything from intense, inpatient care, to substance abuse treatment, to outpatient care and counseling.
Increasing access to mental health services for all: Investing over $10.1 billion to increase access to behavioral health services for all Californians. Transforming Medi-Cal to expand behavioral health services and crucial care for one in three Californians, offering new crisis care and targeted veteran and older adult services, and developing a plan to require private and commercial health plans to raise their standards to match Medi-Cal behavioral health plans.
Building our health care workforce: California is investing $5.1 billion, and proposing an additional $2.4 billion investment through reforms to the Mental Health Services Act, to train and support more than 65,000 new health care workers over the next five years to ensure we have the workforce to provide culturally responsive services and care to all who need them.
Supporting and serving children: The investments include $4.6 billion to support children through the Master Plan for Kids’ Mental Health and gives California’s 10,000 public schools the opportunity to get enhanced funding to increase student behavioral health services.
“Getting veterans experiencing homelessness off the streets has long been a priority for California, but getting some of our most vulnerable veterans into needed treatment for behavioral health challenges will be transformative,” said AB 531 Author Assemblymember Jacqui Irwin. “One of the only groups that has seen a recent significant decline in percent of homelessness are veterans, thanks primarily to the very successful Veterans Housing and Homeless Prevention program. By placing a renewed focus on existing programs like Homekey and the Behavioral Health Continuum Infrastructure program, AB 531 and SB 326 will provide housing and treatment services to veterans that focus on serious mental illness and substance use disorders. Funding and expanding this program is the right thing to do, and I look forward to working with the Governor and veterans organizations to put these important advances before the voters.”
“California continues to reduce the number of veterans living on our streets — a feat to be celebrated — but there are still thousands more who won’t have a place to sleep tonight,” said U.S. Vets President and CEO Stephen Peck. “Gov. Newsom’s successful legislative push to reform the Mental Health Services Act will allow providers to attack this problem head on. Refocusing funding that prioritizes care for those with the most serious mental illnesses combined with the promise of thousands of new, dedicated veteran housing units offers one of the state’s most sweeping and welcome reforms in favor of vulnerable veterans who need the stability and services to live a life of dignity."
“We applaud Gov. Newsom, Sen. Eggman and Assemblymember Irwin for their leadership on SB 326 and AB 531,” said California Professional Firefighters President Brian Rice. “Every day, our firefighters and paramedics see the impact of severe mental illness and substance use disorder in our communities. We have to do more than just take people through a revolving door in the emergency room. By focusing on housing and treating those most in need, the Behavioral Health Modernization package can transform our approach to homelessness, mental illness and substance use disorder.”