The Los Angeles County Board of Supervisors approved the 2012-13 ($24.529 billion) Recommended Budget that closed a projected $75.8 million budget gap with one-time budget solutions. The Board also approved a staff recommendation that AB 109 prison realignment funds estimated at $272.4 million be set aside until its Supplemental Budget discussion in October when the Board will align its final budget with the state approved budget.

In the area of Health Services, the department’s 2012-13 Recommended Budget included a $132.0 million revenue placeholder. The department was able to mitigate a portion of this placeholder, and is recommending including $37.6 million of estimated revenues from mental health services, the managed care rate supplement, and Healthy Way LA in FY 2012-13, as well as other adjustments, that reduce the placeholder by $37.8 million to $94.2 million.

The recommendations also reflect a $238.3 million increase in appropriations and the associated federal revenue for the Delivery System Reform Incentive Pool Intergovernmental Transfer payment to the State as required by the 1115 Waiver.

The Mental Health Services Act (MHSA) reflects a $19.9 million appropriation increase fully offset by revenue for the implementation of state-approved MHSA plans. On a related note, the Mental Health Commission held a public hearing on the MHSA Annual Report. This hearing required the Los Angeles County Department of Mental Health to report out to local stakeholders and the Commission on the progress of implementing MHSA programs and outcomes on those funded projects. HASC provided comment regarding the need for improved coordination and transition of patients to outpatient services/programs that MHSA funds. In addition, comment was submitted regarding the need to expand mental health urgent care capacity for patients that require mental health services at a non-designated hospital.