CALIFCKD RECEIPTS DESK/ SNAPSHOT 06.NOV.2026/ 45 PUBLIC SERIES/ NO GRADE · NO FORECAST INDEPENDENT · CALIFORNIA
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Proposition 63 (2004), Mental Health Services Act

Behavioral health tax · California, mostly administered by counties

$4.6B

expended FY2023–24 · ~$2.7B deposited that year

What this page does not claim: A single statewide causal line from Proposition 63 to homelessness or crime. Counties implement the funds differently, other laws and funding streams intervene, and the 2024 Proposition 1 is a separate case.

Promise and scope

Proposition 63, passed on 2 November 2004, imposed a 1 percent tax on taxable personal income over $1 million. Receipts go to the Mental Health Services Fund, later discussed as the Behavioral Health Services Fund. The tax was effective 1 January 2005. Counties administer most of the spending.

Later reform, kept separateResearch pending

March 2024 Proposition 1 renames and changes the program toward the Behavioral Health Services Act. DHCS materials describe BHSA requirements taking effect 1 July 2026. That 2024 measure is not given outcome numbers here.

Money deposited and money expended

The DHCS 2025 expenditure report records about $2.7 billion deposited in fiscal 2023–24 and about $4.6 billion expended from the fund in that same year. Expenditures can exceed that year’s deposit because the fund carries a balance. Revenue moves with high-income personal income tax, including capital gains.

OutcomesResearch pending

County evaluations, including RAND studies of Los Angeles County full-service partnership and prevention programs, report client changes and estimated cost offsets inside the programs they studied. That is local program evidence. It is not a statewide result for homelessness or for the tax as a whole. A reconciled statewide outcome series is not in this snapshot.

Sources for this case

  • DHCS behavioral health reform and MHSA materials

Vintage: DHCS 2025 Mental Health Services Act Expenditure Report, associated with 2025 Budget Act figures.

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