CA Department of Mental Health: Budget Highlights and Health Reorganization


The 2012-13 Governor’s Budget creates the Department of State Hospitals (DSH), eliminates the 

Department of Mental Health and reorganizes community mental health programs to other
departments. These proposals will:

  • Allow the DSH to focus on effective patient treatment and increased worker and patient safety. 
  •  Integrate services to provide an effective continuum of care, consistent with the federal health care reform, and
  • Better align programs’ mission and functions to improve efficiency and program delivery. 

Department of State Hospitals Overall Budget.

The total budget proposes $1.5 billion from all fund sources and 11,273 positions to support 6,439 patients (State Hospitals-$1.4 billion; Headquarters-$73 million; Capital Outlay $91.7M).

State Hospitals. The DSH operates five state hospitals and two psychiatric programs, providing
mental health treatment individuals with mental illness. The total operating budget for current and
budget year is $1.4 billion ($1.3 billion General Fund; $100 million Reimbursements).

  • State Hospital Savings – State hospital savings plans based on identification of program efficiencies were implemented in January 2012. The implementation and streamlining of programs will allow the continued administration of adequate patient treatment more efficiently. Current year saving total $122.6 million (346 positions); budget year savings totals $193.1 million (620 positions). 
  • Population Adjustment – Current year decrease of 32 patients ($0). Budget year increase of 119 patients ($13.7 million). 
  • Unfunded Activities and Services ….

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The 2012-13 Governor’s Budget proposes a reorganization of behavioral health. The majority of community mental health programs from the Department of Mental Health (DMH) will transfer to the Department of Health Care Services, concurrent with the majority of programs from the Department of Alcohol and Drug Programs. This consolidation is the first step toward integrating mental health, substance use disorder, and physical health for an effective continuum of care for consumers, and in preparation for health care reform in 2014.

The Budget includes the transfer of $104.7 million ($16.315 million State Operations, $88.385 million Local Assistance) from DMH to specified state departments and entities. The following is a summary of the current DMH community mental health functions and programs and the associated resources that will be shifted:…

Continue to see the Chart: 

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  • LAAAC is managed by St. Barnabas Senior Services; Funded, in part, by Archstone Foundation.
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