Community Mental Health Services Block Grant (MHBG)
California’s FY12-13 Mental Health Block Grant Application draft is now available for review and comment. Please send comments to Email Address: firstname.lastname@example.org.
The Substance Abuse & Mental Health Services Administration (SAMHSA), Center for Mental Health Services (CMHS) provides grant funds to establish or expand an organized community-based system of care for providing non-Title XIX mental health services to children with serious emotional disturbances (SED) and adults with serious mental illness (SMI). States are required to submit an application for each fiscal year the State is seeking funds. These funds are used to: (1) carry out the State plan contained in the application; (2) evaluate programs and services, and; (3) conduct planning, administration, and educational activities related to the provision of services.
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.
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 and submit an annual plan and implementation report for providing comprehensive community mental health services to adults with a serious mental illness 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.
Source of Funds
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).
Fiscal Year Statewide Funding Amount:
- FY 2008-09: $53,728,412
- FY 2009-10: $53,996,249
- FY 2010-11: $53,676,045
- FY 2011-12: $53,096,425
- FY 2012-13: $57,438,409
The California State Department Health Care Services (DHCS) administers the block grant and allocates the funds each year to the 58 local county mental health plans (MHPs). The MHPs and their contracted providers deliver a broad array of treatment and support services that include over 150 individual programs supported by the block grant.
SAMHSA 2013-14 County Renewal Application Documents
County applications are due to DHCS by August 09, 2013
Planning Estimate Worksheet: For planning estimate worksheets, please email MHBG@dhcs.ca.gov
Federal statute requires independent peer reviews to assess quality, appropriateness, and efficacy of services utilizing Block Grant funding. The former Department of Mental Health entered into a Memorandum of Understanding with the California Mental Health Planning Council to conduct the reviews. No fewer than 5% of counties will be reviewed annually.
The CMHS requires that States develop a comprehensive public mental health system that has as one of its goals to move care for adults with SMI and children with SED from costly and restrictive inpatient 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.
Funding: Who's Eligible?
Funds are allocated to county mental health departments to be used for community mental health services for a specific target population. Target populations of the funding are Adults and Older Adults with SMI and Children with SED, as defined in the Federal Register.
Funds cannot be used for the following:
Cash payments to intended recipients of health services
Purchase or improve land or buildings
Purchase of major medical equipment
Provide financial assistance to any entity other than a public or nonprofit private entity
Financing: Matching Funds Requirments
This grant does not require a State match, however, it requires a statutory maintenance of effort to document that the State has maintained expenditures for community mental health services at a level that is not less than the average level of such expenditures maintained by the State for the 2-year period preceding the fiscal year for which the State is applying for the grant.
DHCS does not require a county match for the “base funding” or the “dual diagnosis set-aside.” However, funds awarded under a competitive grant are subject to the requirements set forth in the State RFA/RFP process, which may include a match.
Funds are distributed per the Cigarette and Tobacco Products Surtax fund formula or can be distributed for the development of innovative programs, in consultation with the California Mental Health Directors Association and upon appropriation by the Legislature (Welfare and Institutions Code).
Length of Funding Availability
Federal law requires that the funds awarded to the States be obligated and expended within two years. CMHS operates on an October to September fiscal year while California operates on a July through June fiscal year. Block grant funds that are awarded in October cannot be allocated until the State Budget is approved the following July. Counties must incur expenditures before receiving payments from their MHBG allocation. Payments are based on actual expenditures documented on quarterly expenditure reports, which are due to the Department of Health Care Services 20 days after the end of the quarter:
- October 20th
- January 20th
- April 20th
- July 20th
MHBG allocations that are unexpended will no longer roll forward to the next fiscal year. Counties must fully expend their FY09-10 MHBG allocations by September 30, 2010. Counties must adhere to the fourth quarter report submittal date of July 20, 2010, but will be able to make revisions to their fourth quarter report up to October 20, 2010. In order to facilitate expenditure the “Federal First Dollar” policy (MH Letter No. 90-07) is used.
Timeframes for Distribution
Payments are not made until all necessary documents are received and applications have been approved. Funds are distributed to counties monthly; unless quarterly fiscal reports have not been submitted or it has been determined a county has excess cash on hand.
Subject to Adjustment in Cost Report Settlement
A block grant cost report is submitted with actual expenditures for the State’s fiscal year. The block grant cost report can be adjusted up until the Department’s Cost Report Data Collection has been settled.
Federal – CMHS
State - DHCS
Reports and Publications
California Bureau of State Audits 2010 Community Mental Health Block Grant Audit Report Findings.pdf
California State Auditor 2010-2011 Single Audit Interim Report.pdf
California Community Mental Health Block Grant Corrective Action Plan 07/12.pdf
Data and Other Reporting Requirements
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.
Public Comment Process
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: A Description of the State Service System
- Identification and analysis of the service system’s strengths, needs and priorities; and
- 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 FY 2010-11 and 2012 Plan was submitted to CMHS on September 1, 2011. 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 any modification of this plan, and/or in the formulation of the 2012-13 Plan.
California’s FY 2012-13 Mental Health Block Grant Application draft is now available for review and comment.
California’s FY 2011-12 Mental Health Block Grant Application is now available for review and comment. This is a 9-1-2010 update to the two-year application.
You may forward any comments on the Plan to Email Address: email@example.com.
To receive a printed version of the Plan, mail your request to:
California Department of Health Care Services
Mental Health Services Division
Grants Management Unit
1500 Capitol Avenue, MS 2704
Sacramento, CA 95814
Email Address: firstname.lastname@example.org
Statutory Citations/Reference Documents
Title XIX of the Public Health Service Act as amended by Public Law (P.L.) 102-321 and P.L. 106-321 (Children’s Health Act of 2000).
- Definition of Adults with SMI and Children with SED, as published in the Federal Register May 20, 1993 (Volume 58, No. 96)
- Welfare and Institutions Code, Sections 5700 and 5700.1.
- Office of Management Budget (OMB) A-10. “Uniform Requirements for Grants to State and Local Governments".
- State Administrative Manual (SAM) applicable provisions for Federal block grant reporting.
- Federal First Dollar policy (MH Letter No. 90-07)
Please view the Mental Health Services Block Grant Staff County Assignment List to find contact information for the analyst assigned to your county.