Sent: Tuesday, November 09, 2004 5:29 PM
Subject: NMHA Issue Update: The Passage of Proposition 63 Increases Funding for Mental Health Services in California

NMHA Issue Update

The Passage of Proposition 63 Increases Funding for Mental Health Services in California

Last week’s elections produced a victory for mental health advocates in California. Proposition 63, a statewide initiative to fund adult and children’s mental health programs, passed with 53.4 percent of the vote. MHAs in California played a key role in helping to pass the measure.

Proposition 63 taxes incomes over $1 million at one percent in order to raise up to $800 million each year in state funds. The measure also requires that current funding for mental health programs be maintained, so that the state cannot reduce funding in the wake of the additional funding stream produced by the new tax. The initiative’s passage qualifies the state for additional federal funds, putting the amount of new money for mental health services over $1 billion per year.

Proposition 63 will fund community mental health programs with voluntary outreach, access to medicines, and a variety of support services for children and adults with mental disorders. The initiative uses a model of integrated, recovery-based services, which includes outreach, medical care, short and long-term housing, prescription drugs, vocational training, and self-help and social rehabilitation. The measure’s proponents believe that these programs will produce hundreds of millions in savings by reducing hospitalizations and incarcerations.

In pilot projects similar to those that will be funded by Proposition 63, participants had a 56 percent reduction in hospital stays, a 72 percent reduction in jail stays, and a 65 percent increase in full-time employment.

Proposition 63 enjoyed widespread support from the mental health and health care communities in California. It was also supported by education and housing advocates, organized labor, and law enforcement. However, it was not endorsed by Governor Schwarzenegger.

The passage of this initiative marks the first of its kind. In the wake of California’s victory, MHAs should consider using their state’s initiative process to fund mental health services. To find out whether your state has an initiative process, go to http://www.ncsl.org/programs/legman/elect/irstates.htm.

For more information on Proposition 63, see http://www.YESon63.org, or contact Sarabeth Zemel, Policy Analyst, at (703) 838-7532 or szemel@nmha.org.