To: County of Sonoma Board of Supervisors
Department or Agency Name(s): Department of Health Services
Staff Name and Phone Number: Nolan Sullivan, 707-565-4774; Jan Cobaleda-Kegler, 707-565-5157
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Department of Health Services Homelessness Appropriations Transfer
End
Recommended Action:
Recommended action
Adopt a Resolution authorizing the transfer of $23,744,101 in Fiscal Year 2026-2027 Adopted Budget revenue and expenditure appropriations from Homelessness Division to Housing Support and Services Section within the Behavioral Health Division. (4/5th Vote Required)
end
Executive Summary:
The Department of Health Services (DHS) is integrating its Behavioral Health and Homelessness divisions to better serve individuals whose behavioral health, housing, and supportive service needs overlap, creating a more coordinated system with less duplication and stronger links between housing and behavioral health services. The merger also expands opportunities to use Medi-Cal reimbursement for services historically funded without federal support, improving long-term financial sustainability, while enabling DHS to consolidate leadership, administrative, planning, and contracting functions for greater operational efficiency. Overall, the integration aims to improve access, continuity of care, and outcomes for community members with complex needs.
Discussion:
The Department of Health Services (“DHS”) included the integration of the Behavioral Health and Homelessness divisions in the DHS Strategic Priorities starting July 1, 2026 in order to better align services for individuals whose behavioral health, housing, and supportive service needs frequently overlap. The integration is intended to create a more coordinated service delivery system, reduce duplication among programs serving many of the same individuals, and strengthen connections between housing and behavioral health services.
The integrated structure also creates opportunities to expand the use of Medi-Cal reimbursement for eligible services that have historically been provided through homelessness programs without federal reimbursement, allowing the County to better leverage available funding and support the long-term sustainability of services.
From an organizational perspective, combining the divisions also allows DHS to consolidate certain leadership, administrative, planning, contracting, and support functions, reducing duplication and making more efficient use of County resources. Ultimately, the goal of the integration is to create a more coordinated and financially sustainable system that improves access, continuity of care, and outcomes for community members with complex behavioral health and housing needs.
The integration of Homelessness Services to Behavioral Health necessitates the transfer of appropriations from a standalone Homelessness Division into a Section within the Behavioral Health Division. Homelessness Services will continue to use its specific fund 11625 and will not be merged with Health Services fund 11605. Homelessness Division will become a section under the Behavioral Health Division to be known as the Housing Support and Services Section (HSSS).
Strategic Plan:
None
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
None
Fiscal Summary
|
Expenditures |
FY 26-27 Adopted |
FY 27-28 Projected |
FY 28-29 Projected |
|
Budgeted Expenses |
$23,744,101 |
|
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$23,744,101 |
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$5,006,664 |
|
|
|
State/Federal |
$11,922,760 |
|
|
|
Fees/Other |
$6,814,677 |
|
|
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
$23,744,101 |
|
|
Narrative Explanation of Fiscal Impacts:
This item requests the transfer of $23,744,101 in budget appropriations, already included in the FY 2026-2027 Adopted Budget, from the Homelessness Division to the Housing Support and Services Section within the Behavioral Health Division, including associated operating transfers. There is no net fiscal impact to the County.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Attachment 1 - Budget Resolution
Related Items “On File” with the Clerk of the Board:
None