Report 2012-122 Recommendation 8 Responses

Report 2012-122: Mental Health Services Act: The State's Oversight Has Provided Little Assurance of the Act's Effectiveness, and Some Counties Can Improve Measurement of Their Program Performance (Release Date: August 2013)

Recommendation #8 To: Health Care Services, Department of

Health Care Services should, as soon as is feasible, revise or create a reasonable and justifiable allocation methodology to ensure that counties are appropriately funded based on their identified needs for mental health services. Health Care Services should ensure that it reviews the methodology regularly and updates it as necessary so that the factors and their weighting are appropriate.

Annual Follow-Up Agency Response From October 2015

DHCS has revised the allocation methodology. The uninsured population is no longer included in the estimate of need because the Affordable Care Act is expected to insure most Californians. The data in the remaining factors have been updated to calendar year 2015. DHCS continues to assess the methodology annually.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

1-Year Agency Response

DHCS met with the County Behavioral Health Director's Association, the Mental Health Services Oversight and Accountability Commission, the California Mental Health Planning Council, and Mental Health America in California in April 2014 to discuss the current allocation methodology. DHCS decided to maintain the current MHSA county allocation ratios for the 2014-2015 fiscal year to allow more time for review and discussion; and address the allocation methodology in greater detail for the 2015-16 fiscal year distributions.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

Discussing the allocation methodology with stakeholders is important; however, because DHCS has neither revised nor justified the current methodology, this recommendation is not fully implemented.

6-Month Agency Response

DHCS has reviewed the current allocation methodology and supporting data sources for the distribution of MHS funds. During spring 2014, DHCS will engage various stakeholders to gather input on the allocation distribution methodology. When finalized, DHCS will issue an Information Notice containing the MHSA allocation methodology for FY 2014-15 by June 2014.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

DHCS is reviewing the current allocation methodology for the distribution of MHS funds and updating the data sources to determine what impact the updated data sources will have on the current distribution percentages. DHCS is also reviewing the allocation methodology used for the 2011 Realignment Behavioral Health Services Growth Special Account funds. By mid-October 2013, DHCS will obtain stakeholder input on the allocation methodology for the 2011 Realignment growth funds. The information gathered from this effort will be leveraged, where applicable, as DHCS works in consultation with the Accountability Commission and CMHDA in reviewing the current MHSA allocation methodology and determining any updated factors or weighting based on needs for mental health services. DHCS will also seek stakeholder input on the allocation factors. Finally, DHCS will issue an Information Notice containing the MHSA allocation methodology for FY 2014-15 by June 2014.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

All Recommendations in 2012-122

Agency responses received are posted verbatim.