LAKECONTY— The Lake County Board of Supervisors revealed that statewide reductions could amount to $120 billion in behavioral health services and $846 million in public health funding. While no cuts have yet impacted local departments, financial changes raise concerns about the future of essential services including possible reductions in the county’s Behavioral Health Department.

But when questioned about the occurrence, Elise Jones, Lake County Behavioral Health Services director disagreed and presented a different picture of the current situation that she explained in an email to this reporter at the Record-Bee.

“I want to clarify an important distinction, as several separate policy issues appear to be blended together in your message,” Jones said in her email. “At this time, Lake County Behavioral Health Services has not implemented ‘deep cuts’ related to federal legislation or statewide reductions. The Department continues to operate all core behavioral health services required under our Medi-Cal Specialty Mental Health and Drug Medi-Cal programs.”

Jones further noted, recent changes locally relate to the implementation of the Behavioral Health Services Act (BHSA), which was approved by California voters through Proposition 1 in 2024. “The original California Proposition 63 (2004), which created the Mental Health Services Act (MHSA), was passed by California voters in November 2004,” Jones disclosed. “Prop 1/BHSA restructures how counties must allocate certain Behavioral Mental Health Services Act resources, including directing a larger share of funding toward housing and services for individuals with the most serious behavioral health needs as part of California’s broader behavioral health system transformation.”

Clarifying further, “As a result of those statewide changes, Lake County Behavioral Health Services recently announced the closure of its peer-operated wellness centers.  (The Big Oak Peer support center in Clearlake Oaks) and This change reflects the state-mandated restructuring of funding priorities under Prop 1/BHSA, rather than reductions related to federal policy proposals.”

Jones expanded still more, “Lake County has been engaged in the BHSA planning process for nearly a year. We have led and engaged the community in this planning process since 2004. That process has been conducted publicly and included stakeholder meetings and community input consistent with state requirements, Jones said.

She went on, “Under BHSA, counties must align funding with specific statewide priorities, which significantly reduces the flexibility previously available for locally designed programs. For example, the Behavioral Health Services Act eliminated the ‘Innovation funding category’ that existed under the original Mental Health Services Act.”

In addition, Jones pointed out, “Separately, there has been national discussion regarding federal legislation and budget proposals that could affect Medicaid and other safety-net programs, including the legislation referenced in your message.” And Jones went on, “State leaders and counties are closely monitoring these proposals and engaging in advocacy efforts given the potential implications for health and behavioral health programs. In addition, counties are currently engaged in discussions regarding elements of the Governor’s proposed state budget that may affect behavioral health programs. At this time, however, no federal funding reductions have been implemented
that directly affect the current operations of Lake County Behavioral Health Services.”

The cause, according to the data received by the Record-Bee, is attributed to:

1.Counties rely heavily on: State realignment funds, Medi‑Cal reimbursements, short‑term grants. When any of these shrinks or expire, behavioral health departments
face shortfalls.

2. Severe Workforce Shortages Lake County already struggles to recruit: psychiatrists licensed therapist and substance‑use counselors.

3. Rising Demand for: substance‑use disorders, homelessness, and crisis‑level mental health needs have increased faster than county capacity.

4. Counties sometimes reduce crisis response hours, youth services, outpatient therapy slots, prevention programs, which result in, reduced crisis
coverage fewer mobile crisis teams or limited hours

Jones then interjected, “With that context in mind, I will briefly address the themes raised in your inquiry.” She then reflected on struggles facing funding sources.

“County behavioral health departments operate through a combination of Medi-Cal reimbursement, state realignment funding, and voter-approved behavioral health funding such as MHSA/BHSA. While the funding landscape is complex and subject to policy changes over time, our Department continues to operate within the current framework and maintain required services,” Jones explained.

She then pointed out, “Workforce recruitment can be a challenge in rural areas; however, Lake County Behavioral Health Services currently maintains a strong and stable workforce network,” she confirmed. “As a Medi-Cal behavioral health plan, the County must meet state network adequacy requirements, and we continue to meet those standards,” Jones added. “We currently have no corrective action plans related to network adequacy. In addition, the Department has developed a strong peer-to-professional workforce pipeline, supporting individuals pursuing certification, education, and clinical careers within the behavioral health field.”

And she noted, demand for behavioral health and substance-use disorder services has increased nationwide over the past decade. “Our Department has expanded several services in response, including crisis response and substance-use treatment programs, and continues to improve access,” she further attested.

Jones then explained, “Recent adjustments to some programs locally relate primarily to the statewide restructuring of behavioral health funding under Prop 1/BHSA, which requires counties to shift portions of funding toward housing and services for individuals with the most complex behavioral health needs.

These changes are part of California’s broader behavioral health transformation and are not the result of federal funding reductions.”

Jones concluded, “Overall, Lake County Behavioral Health Services remains committed to maintaining access to care and continuing to build a
comprehensive behavioral health system for our community.”

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