Behavioral Health Services Act

California voters approved the Mental Health Services Act (MHSA) in 2004. It was funded by a 1-percent tax on personal income over $1 million. Shasta County used these funds to provide services for children, youth, adults, older adults and families. MHSA services helped prevent or ease the impact of mental illness. You can still view MHSA plans and updates created before BHSA took effect. 

The Behavioral Health Services Act (BHSA) replaces MHSA. It began in January of 2026 and goes into full effect in July 2026.

Changes from MHSA to BHSA include:

• Renaming the Mental Health Services Act (MHSA) to Behavioral Health Services Act (BHSA). The use of the phrase, "behavioral health," makes it possible to include funding for substance use recovery resources for those who do not live with a mental illness. Currently, MHSA-funded programs can serve people living with substance use disorder, but only if they have a co-occurring mental illness.
   
• Redefining spending categories. BHSA categories include:
  • Housing Interventions (30%)
  • Full-Service Partnerships (35%)
  • Behavioral Health Services and Supports (35%)
     
• Reallocating more funds to the state. Under BHSA, each county will receive a 90% portion of the total funds allocated to them. The state's share will be 10%. The state’s 10% share will be divided this way:
  • 4% - Statewide Population-Based Prevention, allocated to the California Department of Public Health (CDPH)
  • 3% - Statewide Workforce, allocated to Health Care Access and Information (HCAI)
  • 3% - State Administration

Currently, under MHSA, the state’s share is 5% and is used entirely for administration.

• Revising and standardizing reporting requirements. Counties must work to expand public reporting and community engagement.

• Children’s, Adult and Older Adult Systems of Care
• Outreach and Engagement
• Workforce Education and Training
• Capital Facilities and Technological Needs
• Early Intervention Programs

These help participants achieve stable housing. To be eligible, a person must have a serious mental illness and/or SUD. They must also be homeless or at risk of becoming homeless. 

Full Service Partnership (FSP) programs provide care tailored to individuals with serious behavioral health needs. Teams of providers use a “whatever it takes” approach. Participants receive community-based, whole-person care. This is trauma-informed, recovery-focused, age-appropriate, and includes families or other supports. 

BHSA will take effect beginning Jan. 1, 2025. However, changes won’t take effect until July 2026.

See Resources for a timeline created by the California Department of Healthcare Services (DHCS). Please note, the timeline is subject to change by the state.

No, the funds come from the same 1% tax on millionaires, which can fluctuate year-to-year. 

Counties will receive less money, because the state is keeping 10% to fund state population-based prevention, workforce and administration costs. Under MHSA, currently, the state keeps 5% for administration.

Shasta County HHSA hopes not to discontinue any programs, but administrators are still unsure of the impact until the state provides further guidance. HHSA will share updates as staff receives them.

The most significant change is that prevention funds will be administered by the California Department of Public Health (CDPH). At this time, it is unknown how CDPH will manage the funds.

Programs that use prevention funds are:

• Suicide Prevention (You Matter Shasta)
• Mental Health Destigmatization (Stand Against Stigma)
• Adverse Childhood Experiences - ACEs (Shasta Strengthening Families)
• Positive Parenting Program (Triple P Shasta)

Mental health services through Medi-Cal or Partnership insurance will not change. 

At this time, Shasta HHSA is waiting on guidance and policies from the state to determine what MHSA programs and services can continue to be funded through BHSA.

Shasta County HHSA is participating in eight statewide workgroups focused on BHSA implementation. Currently, the groups involve county and state staffs only. 

Under BHSA, counties will have some ability to transfer funds between buckets, particularly small counties like ours, with populations under 200,000. However, it is too soon to know what that will look like for Shasta County.

A housing intervention is housing assistance and supportive services that help youth, adults and older adults achieve housing stability. Eligible individuals must be living with Serious Mental Illness (SMI) and/or Substance Use Disorder (SUD), and experiencing homelessness or at risk of becoming homeless. 

No, they will remain separate. The MHADAB oversees all mental health-related funding streams and programs. The MHSA Workgroup focuses solely MHSA programs and funding. When BHSA goes into effect, the workgroup will be renamed BHSA Workgroup but have the same focus.

DHCS website: Read the BHSA County Policy Manual: Module 1

DHCS website: View the Behavioral Health Transformation Timeline (state managed)