County preps for Prop. 1 implementation, housing focus

Though County Executive Mike Callagy acknowledged there are many unknowns in terms of the specific details of requirements and regional allocations from the state, he believes the emphasis on housing is a great stride in addressing mental health in the county. 

“One of the worst places to treat someone with mental health issues is on the street,” Callagy said. “It really does start with getting them stable housing.”

In addition to the bond revenue to address the housing crisis, the measure also requires counties to dedicate 30% of the state’s “millionaire’s tax” — a special tax on income over $1 million dedicated toward mental health services — toward housing programs. 

The difficult part, Callagy said, will be finding the locations for housing “especially in one of the most expensive environments.” He said the responsibility of finding the best places to house those in need will still fall on the county. 

“None of us really understand yet what the impacts will be and the takeaways,” Callagy said. “There’s certainly a little bit of angst around that but these dollars really do need to go to housing and that is paramount.”

This dedication to housing does mean there will be an overall $15 million redirection of Mental Health Services Act funds to meet requirements set by Proposition 1. Four percent of that millionaire’s tax revenue will also shift to the state to be used on population-based prevention, which can include awareness campaigns and is a feat the county currently undertakes.

BHRS Director Dr. Jei Africa said although the state is taking on prevention efforts at a statewide level, the county still is to dedicate at least 15% of its MHSA revenue to early intervention, which entails engaging with at risk youth before they require more intensive services. 

“I believe that an ounce of prevention is worth a pound of cure,” Africa said. “We need to be thinking about how do we best serve our children and youth.”

MHSA Manager Doris Estremera said about 43% of funding currently allocated toward outpatient treatment programs, and 100% of innovation and technology projects, will be redirected. She said other state funding will likely be used to reimburse the money directed away from these services.

Still, the county will have to reprioritize services and current programming criteria on how to best leverage the new funding requirements.

Africa said there is an increasing necessity for BHRS to think about how to maximize its revenue to sustainably expand their work and pay their workers. 

“We will always be a client center, we will always be a family center, we are going to always be a community center, but we are also a business,” Africa said. “We cannot perform and continue doing our work if we do not figure out ways to fund the services beyond what the government is giving us.”

Current programming by MHSA will continue as is until the full adopted of Proposition 1 happens in July 2026. Until then, Estremera said there is much to be done as they figure out how to expand their services within the confines of state guidance.

“We’re going to have to really think about how we support our ongoing programming and get really creative,” Estremera said. “We have time but it’s also going to go fast.”

ana@smdailyjournal.com

(650) 344-5200 ext. 106