Mental Health Ass'n v. Schwarzenegger

190 Cal. App. 4th 952, 2010 D.A.R. 18, 119 Cal. Rptr. 3d 180, 2010 Cal. App. LEXIS 2071
CourtCalifornia Court of Appeal
DecidedDecember 9, 2010
DocketNo. A125937
StatusPublished
Cited by1 cases

This text of 190 Cal. App. 4th 952 (Mental Health Ass'n v. Schwarzenegger) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mental Health Ass'n v. Schwarzenegger, 190 Cal. App. 4th 952, 2010 D.A.R. 18, 119 Cal. Rptr. 3d 180, 2010 Cal. App. LEXIS 2071 (Cal. Ct. App. 2010).

Opinion

Opinion

POLLAK, Acting P. J.

Several organizations dedicated to providing advocacy, education and support services in the field of mental health1 and several individuals who have been recipients of assistance from the former Homeless Adults Program, appeal from the denial of their petition for a writ of mandate to compel the State of California2 to reinstitute that program. Appellants contend that the removal from the state’s budget of funding for the Homeless Adults Program, which occurred as the result of a gubernatorial veto in 2007, violates the provisions of the Mental Health Services Act (MHSA), which was approved by the voters as Proposition 63 on the November 2004 ballot. That measure imposed a new tax to fund the expansion of mental health services and added to the Welfare and Institutions Code3 section 5891 which, as originally enacted, reads as follows: “The funding established pursuant to this act shall be utilized to expand mental health services. These funds shall not be used to supplant existing state or county funds utilized to provide mental health services. The state shall continue to provide financial support for mental health programs with not less than the same entitlements, amounts of allocations from the General Fund and formula distributions of dedicated funds as provided in the last fiscal year which ended prior to the effective date of this act. The state shall not make any change to the structure of financing mental health services, which increases a county’s share of costs or financial risk for mental health services unless the state includes adequate [956]*956funding to fully compensate for such increased costs or financial risk. These funds shall only be used to pay for the programs authorized in Section 5892. These funds may not be used to pay for any other program. These funds may not be loaned to the state General Fund or any other fund of the state, or a county general fund or any other county fund for any purpose other than those authorized by Section 5892.” (Italics added.)4 We conclude that the trial court correctly determined that termination of the Homeless Adults Program violated neither the “funding requirement” nor the “structure requirement” of section 5891.

Background

The Homeless Adults Program began in 1999 as a three-county demonstration project to provide extended community mental health services and outreach to mentally ill adults who were homeless or at risk of homelessness. (Stats. 1999, ch. 617, § 1, p. 4345.) The Director of the State Department of Mental Health (the Department) was directed to devise a methodology for awarding grants to counties consistent with the priorities set forth in the legislation. (See §§ 5814, subd. (a)(2), 5802.) These projects were considered highly successful and the following year Assembly Bill No. 2034 (1999-2000 Reg. Sess.) (Assembly Bill 2034) was enacted providing additional funding to expand to additional counties what became known as the “AB 2034 program.” (See Stats. 2000, ch. 518, § 1; § 5814.) As the trial court found, “It is not disputed that, since its inception the AB 2034 program has been a tremendously valuable and effective program addressing the needs of homeless adults who suffer mental illness.”5

[957]*957In November 2004, the voters passed Proposition 63, enacting the MHSA, adding numerous provisions to the Welfare and Institutions Code and the Revenue and Taxation Code.6 As summarized by the Legislative Analyst in the official voter information guide, the proposition “establishes a state personal income tax surcharge of 1 percent on taxpayers with annual taxable incomes of more than $1 million. Funds resulting from the surcharge would be used to expand county mental health programs. [][]... [f] .. . The proposition specifies that the revenues generated from the tax surcharge must be used to expand mental health services and could not be used for other purposes. In addition, the state and counties would be prohibited from redirecting funds now used for mental health services to other purposes. The state would specifically be barred from reducing General Fund support, entitlements to services, and formula distributions of funds now dedicated for mental health services below the levels provided in 2003-04.” (Voter Information Guide, Gen. Elec. (Nov. 2, 2004) analysis of Prop. 63 by Legis. Analyst, p. 34.) The measure created a Mental Health Services Fund to be administered by the Department, into which funds generated by the new tax surcharge were to be deposited and “all moneys in the fund are continuously appropriated to the department, without regard to fiscal years, for the purpose of funding” programs authorized by the act. (§ 5890, subd. (a).)

Following passage of the MHSA, in July 2005, the Department adopted a “County Non-Supplantation policy” to implement the statute. In a letter directed to all local mental health directors and others, the Department advised that “county non-supplanting under the MHSA consists of three requirements, all of which must be met in order for an expenditure to be eligible for reimbursement under the MHSA.” The policy requires that funds be used for programs authorized in section 5892, that funds not “be used to replace other state or county funds required to be used to provide mental health services in fiscal year 2004-2005 (the time of enactment of the MHSA),” and that funds “be used on programs that were not in existence in the county at the time of enactment of the MHSA (new programs) or to expand the capacity of existing services that were being provided at the time of enactment of the MHSA (11/2/04).” The letter further advised that the policy “does not preclude a county from ceasing to fund programs that no longer meet the needs of the county and its stakeholders as long as the aggregate state and county funds required to be used to provide mental health services are used for such purpose.” Also, the Department “does not intend to [958]*958change the structure of mental health financing which would increase a county’s share of cost or financial risk for mental health services.” The Department subsequently promulgated regulations implementing the MHSA which include the nonsupplantation requirements. (Cal. Code Regs., tit. 9, § 3410.) When additional MHSA funds have become available for distribution to the counties, the Department has reiterated the need to comply with the nonsupplantation policy.

In 2003-2004, the Department’s budget included $557,948,000 in state General Fund monies dedicated to local assistance for mental health services, including administrative costs. This amount included funds for numerous categories of programs and services, including the Early Mental Health Initiative, community services—other treatment, children’s mental health services, AIDS programs, Healthy Families programs, managed care, services for brain damaged adults, and Medicaid Early and Periodic Screening, Diagnosis and Treatment (EPSDT) benefits. In 2006-2007, the Department’s budget for these and other new county mental health services was $740,069,000, and in 2007-2008, the fiscal year in which this action was filed, $741,444,000.

The AB 2034 program continued until August 2007, when the Governor exercised line-item veto authority to delete from the 2007-2008 budget the $54.85 million that the Legislature had included for this program.

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190 Cal. App. 4th 952, 2010 D.A.R. 18, 119 Cal. Rptr. 3d 180, 2010 Cal. App. LEXIS 2071, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mental-health-assn-v-schwarzenegger-calctapp-2010.