MARIN COUNTY, CA – Mental health programs in Marin County could lose up to $12 million in state funding due to the changes brought by Proposition 1, according to Todd Schirmer, director of Marin County Behavioral Health and Recovery Services.
Schirmer shared the financial outlook with the Board of Supervisors during a recent budget workshop for the 2025-26 fiscal year.
How Proposition 1 is Changing Mental Health Funding
Passed in March 2024 by a narrow 50.18% majority, Proposition 1 introduces significant changes to how mental health funding is allocated. The measure consists of two major parts:
The Behavioral Health Services Act (BHSA), which restructures mental health funding.
The issuance of $6.4 billion in bonds to support mental health treatment and housing projects.
The Behavioral Health Services Act (BHSA) replaces the Mental Health Services Act (MHSA), which has been funding mental health programs since 2004 through a 1% tax on millionaires. Under the new model, a larger portion of funds will now be allocated to housing programs instead of mental health services.
Programs at Risk of Funding Cuts
Schirmer warned that many existing mental health programs in Marin County could see reduced funding, including:
- Peer-run drop-in centers
- Jail diversion programs
- Family support services
- Crisis residential and hospital diversion programs
- Community health advocate programs
- Behavioral health infrastructure and staffing
One program affected is the Enterprise Resource Center in San Rafael, a peer-run mental health drop-in center. The center’s $700,000 annual budget was previously funded through MHSA, but it already faced a $30,000 cut this year. The center is now billing Medi-Cal for services to offset the loss.
“Having someone help you that has lived experience can be a really powerful tool for recovery,” said Jennifer Carter, the center’s executive director.
Schirmer noted that BHSA requires counties to maximize Medi-Cal billing whenever possible, further complicating funding strategies.
Additional Funding Reductions and New Mandates
BHSA redirects 30% of MHSA funds to housing services, reducing available funding for community-based mental health programs.
BHSA transfers an additional 5% of funds to the state for oversight, costing Marin County $1 million annually.
The county’s $3 million in early intervention funding will continue, but with new restrictions on how it can be used.
BHSA expands services to include individuals with substance use disorders, even if they do not have a diagnosed mental health condition.
Despite these funding reductions, BHSA also imposes new costly mandates on counties, including:
- 24/7 mobile crisis response teams
- Implementation of an electronic health record system
- Establishment of a CARE Court, which can order treatment for individuals with severe psychotic disorders
Schirmer noted that $2.3 million in additional costs will be required to support mobile crisis response and CARE Court implementation in 2025-26.
Balancing the Budget
To address the funding shortfall, Schirmer outlined potential cost-cutting measures:
- $2.3 million in savings by not filling vacant positions in the department
- $526,000 in new revenue from opioid settlement funds
However, even with these adjustments, a $3.5 million gap remains, leaving the county in a difficult financial position.
Why Did Proposition 1 Shift Funding?
Supervisor Stephanie Moulton-Peters questioned the logic behind the funding changes.
Schirmer explained that the state prioritized homelessness intervention, shifting mental health resources toward housing programs to address California’s homelessness crisis.
Marin County supervisors had previously endorsed Proposition 1, but now face difficult budget decisions as the funding structure changes.
Public meetings are ongoing to determine how to prioritize mental health services under the new financial constraints. So far, top community concerns include:
- Peer support programs
- Support for families with severe mental health disorders
- Youth mental health services
- Expanded substance use disorder services
The county will continue exploring ways to secure funding and minimize service disruptions as it adjusts to the new reality under BHSA.
