1. The 2017-18 California Budget
The Assembly and Senate Budget Committees have finalized their combined version of the state budget.
The resulting 800+ page Budget Bill vote will be Thursday, June 15th to ensure legislators continue to be paid.
When the Budget Bill reaches the Governor he will accept most of the budget, but retains the right to “blue pencil” (veto) certain items.

2. IHSS Cost Shift
The Governor backed off the January budget proposal to shift $623 million in IHSS costs from the state to counties.
While the new proposal provides hundreds of millions in state funding for counties overall, mental health loses funding through a VLF Growth redirection (projected at $36 million in ).
CBHDA ADVOCACY:
1991 Realignment Mental Health will receive a partial mitigation through freezing IMD rates over this time period (no annual 3.5% increase).
Cities of Berkeley and Tri-City Mental Health are exempted from the VLF Growth redirection.

3. Mental Health Services Act Reversion
CBHDA ADVOCACY:
No claw-back of county funds for reversion prior to (approximately $103 million).
Counties must submit a plan for expending unallocated funds by July 1, 2018 and will have until 2020 to expend these funds.
Extend the reversion period from 3 to 5 years for small counties with populations under 200,000.
Restart the reversion clock for Innovation upon OAC approval of county Innovation plans.
Going forward, reverted funds will be reallocated to other counties based on the type of funds (i.e., if the funds that revert are Innovation funds, they will be redistributed to counties via the Innovation fund allocation).

4. Substance Use Disorder Funds
$662 million in FY for Drug Medi-Cal ODS Waiver
$142 million State General Fund
$520 million Federal Financial Participation
$45 million in federal Cures Act Opioid Targeted Response Grants recently awarded to California.
These funds will be used to provide medication-assisted treatment via 15 narcotic treatment “hubs” in association with related “spokes” that are approved to prescribe the medications.

5. Medicaid Managed Care Final Rule
Estimated FY MHP Costs for Implementation of the Final Rule*
*Source: DHCS Medi-Cal Estimate May 2017, Other Administrative Policy Change Number 112

6. Other Budget Items CBHDA Advocacy (Support):
5/4/2018
Other Budget Items
CBHDA Advocacy (Support):
Children’s Health Insurance Program (CHIP): $536 million
Medi-Cal for undocumented children: $280 million
CBHDA Advocacy (Oppose):
Governor’s elimination of $17 million state GF for Children’s Crisis Services SB 82 Grants
Governor’s elimination of $68 million in Community Infrastructure Grants to help with mental health and SUD services for offender re-entry.
Note: Both these items were restored by the Legislature but are vulnerable to the blue pencil veto.