In 1992 the ADAMHA Reorganization Act (ARA, PL 102-321) was passed establishing the Substance Abuse and Mental Health Services Administration (SAMHSA). The ARA also separated the mental health and substance abuse funds into two separate grants.

The Center for Mental Health Services (CMHS) distributes the Community Mental Health Block Grant funds to 59 eligible States and Territories through a formula, based upon specified economic and demographic factors. States must apply for the grants each year, providing an annual plan and implementation report for providing comprehensive community mental health services to adults with a serious mental illness (SMI) and children with a serious emotional disturbance (SED).

The block grant also requires that the State must have and maintain a State Mental Health Planning Council that meets specific membership requirements. One of the many roles of the Planning Council is to review the State mental health plan and implementation report and provide recommendations for modification when necessary.

The Community Mental Health Services Block Grant is the Center for Mental Health Services (CMHS). CMHS is one of three centers within the Substance Abuse and Mental Health Services Administration (SAMHSA), and agency of the U.S. Department of Health and Human Services (HHS).

- FY 2006-07: $54,700,302

The California State Department of Mental Health (DMH) administers the block grant and allocates the funds each year to 58 local county mental health agencies. The county mental health departments and contracted providers deliver a broad array of treatment and support services that include over 150 individual programs supported by the block grant.

The CMHS requires that States develop a comprehensive public mental health system that has as one of it’s goals to move care for adults with SMI and children with SED from costly and restrictive impatient hospital care to the community. States and territories may expend block grant funds only to carry out their annual plan, to evaluate programs and service carried out under the plan, and for planning, administration, and educational activities related to providing services. Although the block grant is a small percentage of California’s mental health budget, it is viewed as providing an important and flexible funding source to support a broad range of activities specific to the needs of each county. The DMH awards most of the funds to counties based on a legislated formula, and the remainder through a competitive process that encourages both innovation and use of best practices.

The funds are allocated to county mental health departments to be used for community mental health services for a specific target population. The target population of the funding is adults and older adults with SMI and children with SED, as defined in the Federal Register.

The funds cannot be used for the following:

1. to provide inpatient services;
2. to make cash payments to intended recipients of health services;
3. to purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment;
4. to satisfy any requirement for the expenditure of non-federal funds as a condition for the receipt of federal funds; or
5. to provide financial assistance to any entity other than a public or nonprofit private entity.

Matching Funds Requirements:

Distribution Formula:

Length of Funding Availability:

Timeframes for Distribution:

In order to receive the formula allocation, each county is required to submit an annual application or expenditure plan that includes a narrative detailing their intended use of the funds. In addition, the county application must include a Federal Grant Detailed Provider Budget for each program, and signed assurances accepting the Block grant funds under the conditions established by governing federal and State laws, regulations and guidelines, as well as specific conditions included in their county application.

Each county must provide financial reporting on a quarterly basis and also an annual cost report. Additionally, counties are required to submit a one-page data sheet for each program funded with the block grant. That data sheet is used to provide information to the federal government as part of the State Plan.

Under the authority of the Public Health Service Act, the Secretary of the Department of Health and Human Services, through the Center for Mental Health Services (CMHS), Substance Abuse and Mental Health Services Administration (SAMHSA), awards block grants to states to establish or expand an organized community-based system for providing mental health services for adults with serious mental illness and children with serious emotional disturbances.  States are required to submit an application for each fiscal year for which the State is seeking funds.  The funds awarded are to be used to carry out the State Plan contained in the application, to evaluate programs and services set in place under the Plan, and to conduct planning, administration and educational activities related to the provision of services under the Plan.

The State Plan includes:

1. a description of the state service system;
2. identification and analysis of the service system’s strengths, needs and priorities; and
3. performance goals and action plans to improve the service system.

Block Grant legislation stipulates that as a condition of the funding agreement for the grant, State’s will provide opportunity for the public to comment on the State Plan.  States will make the Plan public in such a manner to facilitate comment from any person (including Federal or other public agency) during the development of the Plan (including any revisions) and after the submission of the Plan to the Secretary of the Department of Health and Human Services.

The 2007 Plan must be submitted to CMHS by September 1, 2006.  A request of approval of a modification to the Plan may be made at any time during the year.  Comments on the Plan may be made at any time during the year.  Comments will be considered in formulating the 2007 plan and any modification of this plan, and/or in the formulation of the 2008 Plan.

California’s FY 2007 Mental Health Block Grant Application is now available for review and comment. 

You may forward any comments on the Plan to Ron Bettencourt.

To receive a printed version of the Plan, mail your request to:

Statutory Cites/Reference Documents: