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
Establishing and Funding the Behavioral Health Services Act Subaccounts
End
Recommended Action:
Recommended action
A) Authorize the establishment of three Behavioral Health Services Act fund subaccounts, transfer the current fund balance in the Mental Health Services Act of $54,246,361.41 to the new subaccounts in accordance with the allocation strategy set forth in the discussion section, and discontinue the use of the existing Mental Health Services Act account.
B) Adopt a Resolution authorizing the transfer of the current Mental Health Services Act fund balance of $54,246,361.41 to the newly established Behavioral Health Services Act fund subaccounts and discontinue use of the existing Mental Health Services Act fund balance account, in accordance with the Behavioral Health Services Act integrated plan and applicable fiscal requirements, as well as authorizing the transfer of $50,055,292 in FY 2026-2027 adopted budget revenue and expenditure appropriations from the current Mental Health Services Act account to the newly established Behavioral Health Services Act subaccounts.
(4/5th Vote Required)
end
Executive Summary:
The Mental Health Services Act (MHSA), passed by voters in 2004, established a dedicated funding stream for mental health services via a 1% tax on personal income over $1 million. In March 2024, voters approved Proposition 1, launching the transition from the MHSA framework to the Behavioral Health Services Act (BHSA) as part of the state’s larger effort to transform California’s behavioral health system. The July 1, 2026 implementation of the BHSA required Sonoma County to establish three subaccounts within the newly established BHSA account: Full-Service Partnership, Behavioral Health Services and Supports, and Housing Interventions, as directed by the California Department of Healthcare Services. Additionally, the County will transfer the unspent MHSA fund balance into the BHSA subaccounts. This action supports the County’s BHSA Integrated Plan, ensures continuity of behavioral health services, and positions the County to meet future reporting and audit requirements.
Discussion:
Effective July 1, 2026, counties officially transitioned from the MHSA to the BHSA. With the implementation of the BHSA, counties are required to establish three distinct subaccounts within their local BHSA account: Full-Service Partnership, Behavioral Health Services and Supports, and Housing Interventions, as stipulated by the California Department of Health Care Services in the BHSA Policy Manual <https://policy-manual.mes.dhcs.ca.gov/behavioral-health-services-act-county-policy-manual/LIVE/6-bht-fiscal-policies> section B.7.1. These subaccounts are designed to promote transparency, accountability, and alignment of expenditures with the priorities outlined in the BHSA Integrated Plan.
To comply with this requirement, Sonoma County must formally establish these three subaccounts and reallocate available MHSA fund balances accordingly. The MHSA fund balance is currently $54,246,361.41 in unspent funds that must be transitioned into the BHSA subaccounts. The $54,246,361.41 Mental Health Services Act fund balance is to be distributed in accordance with the following allocation strategy:
• 50% of funds to the Behavioral Health Services and Supports subaccount
• 25% of funds to the Housing Interventions subaccount
• 25% of funds to the Full-Service Partnership subaccount
This allocation strategy aligns with the County’s BHSA Integrated Plan and ensures that programmatic funding is in place for services that span early intervention, treatment, recovery, housing, and wraparound support. These changes will also prepare the County to meet upcoming reporting and auditing requirements under BHSA and allow for the continued delivery of essential behavioral health programs and services without disruption.
In addition, this item includes a resolution to facilitate the transfer of $50,055,292 in existing FY 2026-2027 Adopted Budget revenue and expenditure appropriations from the MHSA accounts to the newly established BHSA subaccounts in accordance with the state allocation requirements outlined in the BHSA Policy Manual. These transfers are budgetary in nature and do not result in an increase to the overall Adopted Budget.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Healthy and Safe Communities
Goal: Goal 1: Expand integrated system of care to address gaps in services to the County’s most vulnerable.
Objective: Objective 3: Create a “no wrong door” approach where clients who need services across multiple departments and programs are able to access the array of services needed regardless of where they enter the system.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
The Mental Health Services Act Program Plan, Expenditure Plan and Annual Program Report has regularly been brought to the Board for adoption. Most recently, on June 2, 2026 the Board adopted the Fiscal Years 2026-2029 Sonoma County Behavioral Health Services Act Integrated Plan.
Fiscal Summary
|
Expenditures |
FY 26-27 Adopted |
FY 27-28 Projected |
FY 28-29 Projected |
|
Budgeted Expenses |
$50,055,292 |
|
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$50,055,292 |
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
$50,055,292 |
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
$50,055,292 |
|
|
Narrative Explanation of Fiscal Impacts:
This item requests authorization to transfer $54,246,361.41 in remaining Mental Health Services Act (MHSA) fund balance into three new Behavioral Health Services Act (BHSA) accounts:
• Full-Service Partnership
• Behavioral Health Services and Supports
• Housing Interventions
This item also requests the transfer of budget appropriations of $50,055,292 already included in the FY 2026-2027 Approved Budget authority under MSHA account to the BHSA subaccounts. There is no net fiscal impact to the County.
The transfer is required by the State as part of the transition from MHSA to BHSA.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Attachment 1 - Resolution
Related Items “On File” with the Clerk of the Board:
None