Prop 1 Passed. Now What?

A couple weeks after a statewide behavioral health reform measure narrowly passed, county Board of Supervisors Chair Nora Vargas says she’ll formally call for the county to prepare to make the most of it at a board meeting later this month.

Vargas said she’ll urge fellow supervisors next Tuesday to direct county behavioral health officials to begin planning potential behavioral health infrastructure priorities to seek state bond funds to back. She said she’ll also call on staff to consider Proposition 1’s potential impacts and opportunities with a focus on equity – and to report back within 120 days.

“I want us to get ahead of it,” Vargas said.

Refresher: Proposition 1 called for a $6.4 billion bond to fund thousands of behavioral health beds and other services plus a reprioritization of county spending using a major mental-health funding stream to focus more on treating serious mental illnesses and addiction, especially among chronically homeless people. This money comes from a 1 percent tax on annual incomes more than $1 million. The reshuffling of priorities under the so-called Mental Health Services Act reformed by Proposition 1 means some programs and services that now rely on these funds could be cut.  

Want a quick explainer? Watch this video.

What’s next: Proposition 1 reforms won’t take effect until July 2026, meaning they won’t lead to immediate cuts. But the state expects to release its first application for bond funds this fall. Many details – including funding priorities or how bond money will be divided up statewide – are still TBD.

A more immediate concern: Luke Bergmann, the county’s behavioral health services director, said the county is bracing for a reduction in Mental Health Services Act money for the upcoming budget year since income taxes have been coming in lower than state projections.

“What we are in the midst of doing right now is ensuring there is the greatest continuity possible in our behavioral health continuum given current MHSA receipts,” Bergmann said.

At least one supervisor’s concerned about next steps: Supervisor Joel Anderson told NBC 7 last week that he’s ready to work with county staff to implement Proposition 1 while still maintaining existing services.

“However, we need more information about what money will be coming in before making any changes to our behavioral health services,” Anderson said.

Vargas is focused on Proposition 1’s possibilities and how it could help the county focus more on housing and holistic care she believes will help it better address its behavioral health and homelessness crises.

“It’s important to me that our constituents know that this is something that is a priority, not only for this board, but to be able to serve the communities that need it most,” Vargas said. “We need to roll up our sleeves and continue to work.”

Also happening April 9: County staff expect to update supervisors on next steps for implementing a state conservatorship expansion law and on projected needs for new behavioral health beds and services.