Receive overview presentation of draft Behavioral Health Services Act (BHSA) Integrated Plan for FY 2026-2029 on programming and services, receive feedback from Board on draft plan, and authorize the County Chief Administrative Officer (CAO) to provide endorsement for submission of the draft BHSA Integrated Plan to Department of Health Care Services (DHCS).  (No general fund impact) (Morales) (Est. Staff Presentation: 10 min)

In March 2024, voters approved Proposition 1 to reform the Mental Health Services Act (MHSA) and replace it with the Behavioral Health Services Act (BHSA). It reforms behavioral health care funding to prioritize services for people with the most significant mental health needs while adding the treatment of substance use disorders (SUD), expanding housing interventions, increasing the behavioral health workforce, and accountability and transparency for county administered, publicly funded behavioral health programs. These reforms also significantly increase county responsibilities for planning, reporting, and stakeholder engagement. Proposition 1 changes the way in which Proposition 63 revenues are expended by county behavioral health plans and marks the transition from the “Mental Health Services Act (MHSA)” to the “Behavioral Health Services Act (BHSA).”  The most notable aspects of this shift are:

• County allocations will be reduced from 95% to 90%
  • Additional 5% (~$1M) redirected to California Department of Public Health for Population Prevention
• New BHSA Components (replaces MHSA CSS, PEI, and INN):
  • Full-Service Partnerships (35%; FY 26-27 Projected Revenue $6.8M)
  • Behavioral Health Services and Supports (35%; FY 26-27 Projected Revenue $6.8M)
  • Housing Interventions (30%; FY 26-27 Projected Revenue $5.8M)

BHSA New Metrics: Statewide Population Behavioral Health Goals
We have 14 specific goals that guide our work.  These goals fall into two main categories: things we want to see more of, and things we want to see less of. Goals for Improvement - these are about building up what's working. Goals for Reduction - these are about reducing the problems we see. Each of these goals has specific targets we're working toward, and we'll be tracking our progress together as a community. Out of these 14 goals, the state has identified six priority areas that need our immediate attention. These are the goals where we can make the biggest difference for most people in our community.  Counties must identify programs, initiatives, or partnerships that align with each of these goals and will support improvement in the outcomes. The State has identified these six areas as immediate priorities. Counties may identify BHSA funded programs, or other programs/initiatives to address these goals. Our work this year is to align with these six areas, as the state will be requesting metrics and reporting on these.

1. Access to Care: Ensuring early identification and connection to behavioral health services through screening, assessment, and referral systems.
2. Homelessness: Preventing and addressing housing instability among individuals with behavioral health needs.
3. Institutionalization: Reducing unnecessary psychiatric hospitalization through community-based care in least restrictive settings.
4. Justice-Involvement: Preventing and reducing criminal justice system involvement through targeted interventions and supports.
5. Removal of Children From Home: Preventing out-of-home placements through family-centered, community-based interventions.
6. Untreated Behavioral Health Conditions: Reducing duration of untreated mental illness and substance use disorders through early intervention.

BHSA Integrated Plan (IP)-Fiscal Year 2026-2027 Approach
On March 3, 2026, HHSA leadership presented to the Yolo County Board of Supervisors (BOS) with updates on the BHSA Integrated Plan, including the Community Planning Process (CPP) and proposed program budget scenarios for Fiscal Year 2026–27, and sought Board approval regarding budget approach for development of the required BHSA Integrated Plan. The complete March 3, 2026, presentation materials (staff report and presentation) and recording for BOS item #32 are available to the community online. The Board approved FY 2026-27 budget approach Scenario 3d which includes the following:

• Transfer 7% from Housing Intervention to Behavioral Health Services and Supports.
• Board allocated approximately $9 million over a 3-year period to add 8 case management positions to FSP to support permanent supportive housing, offset other BH reductions/deficits and invest in Medi-Cal billing/revenue generation.
• Per the plan’s requirements, remaining $5.2 million fund balance will be allocated to align with the distribution of the $9 million (1/3 to FSP, 2/3 to BHSS)

The draft Integrated Plan includes the following services and programs, with the details below focused on Year 1 (FY 2026–27).

The Department of Health Care Services (DHCS) provides each county with an estimated number of individuals living with a behavioral health need who may have a clinical need for FSP and the total number who may have a clinical need for each required evidence-based practice.

Based on the current baseline programming, required evidence-based practices, and the above estimated client threshold, below are the draft program encumbrances.

Counties are required to allocate 35 percent of their total local Behavioral Health Services Act (BHSA) allocations for Behavioral Health Services and Supports (BHSS). Of the 35 percent of funds allocated to BHSS, counties are required to use 51 percent of funds for Early Intervention Programs, and of that, 51 percent of the funds for Early Intervention Programs must be used to serve BHSA eligible individuals who are 25 years of age and younger. Early Intervention programs must include:

Early Intervention Services

In California, 82% of people experiencing homelessness reported having a serious mental health condition (California Department of Health Care Services, 2024). In Yolo County, individuals experiencing homelessness has increased by 26.3% since 2022. BHSA invests in permanent supportive housing, integrating housing with behavioral health services, AND prioritizes chronically homeless individuals. Thirty percent (30%) of BHSA funds must be spent under Housing Intervention to increase access to permanent supportive housing for individuals meeting BHSA eligibility and who are chronically homeless, experiencing homelessness, or are at risk of homelessness.  The results of such investments may significantly reduce psychiatric hospitalizations, costly emergency room visits, and law enforcement response and incarcerations. Individuals must meet the BHSA eligibility requirements, identified in this policy manual and meet the definition of:

Yolo County HHSA has continued to support a regional response to address homelessness and access to affordable housing; utilizing state, federal, and local funding and strengthening partnerships to expand critical programs. These activities include but are not limited to:

With BHSA funds, Yolo County HHSA is proposing to continue current investments and expand investments in Housing and Homelessness support through rental subsidies, operating subsidies, and interim and permanent housing development. Per State guidelines, Yolo County HHSA will further expand access to housing by utilizing 6 months of transitional rents through the Yolo County Transitional Rents provider (Turning Point Community Programs), as well as create stability by utilizing all local non-profits and community partners who provide ECM/CS to increase both access to housing and ensuring clients retain housing.

HHSA will release a competitive procurement (RFP) for Housing Interventions (Capital Development and Operating Subsidies) in late summer 2026, with anticipated contract start date winter 2027.

County Behavioral Health is committed to boldly taking action to provide Yolo County residents with quality, culturally responsive behavioral health services when, how, and where they need them. The new BHSA plan offers Yolo County the opportunity to coordinate across service delivery systems, including community-based organizations, hospitals, law enforcement, Medi-Cal MCPs, commercial plans, commercial regulators, public health, and other key service delivery partners. By working together across all these systems, we will be better prepared to ensure people with the highest behavioral health needs are served and we deliver measurable, integrated behavioral health services that are financially sustainable.

For additional BHSA details, please refer to the Department of Health Care Services BHSA County Policy Manual, BHSA County Reporting timeline (infographic), and informational MHSA vs BHSA funding overview.

Local Behavioral Health Board