Proposition 2

Bonds to Fund Existing Housing Program for Individuals with Mental Illness

Click here to create an account and save your votes.

Would amend the Mental Health Services Act (MHSA) to fund "No Place Like Home" Program, which finances housing for individuals with mental illness. This proposition would ratify existing law establishing the "No Place Like Home" Program, which finances permanent housing for individuals with mental illness who are homeless or at risk for chronic homelessness, as being consistent with the Mental Health Services Act approved by the electorate. Proposition 2 is a legislative statute.

Fiscal Impact: Would allow the state to use up to $140 million per year of county mental health funds to repay up to $2 billion in bonds. These bonds would fund housing for those with mental illness who are homeless.

Semi-official results:

Yes: 2,463,581 (59.7%)

No: 1,665,681 (40.3%)

Details

Pro/Con
Pro: 

Proponents of Proposition 2 argue that it will help people get off the streets and into comprehensive mental health services and addiction treatment and does not raise taxes.

A YES vote on this measure means: The state could use existing county mental health funds to pay for housing for those with mental illness who are homeless.

CAYesOnProp2.org

Con: 

Opponents of Proposition 2 argue that the measure is unnecessary because last year the Legislature authorized county use of MHSA funds for housing without the need to borrow money. They believe that taking up to $5.6 billion away from the severely mentally ill to fund bonds to build them just housing without requiring treatment will force many more into homelessness.

A NO vote on this measure means: The state’s ability to use existing county mental health funds to pay for housing for those with mental illness who are homeless would depend on future court decisions.

In Depth

Background

Counties Provide Mental Health Services. Counties are primarily responsible for providing mental health care for persons who lack private coverage. Counties provide psychiatric treatment, counseling, hospitalization, and other mental health services. Some counties also arrange other types of help for those with mental illness—such as housing, substance abuse treatment, and employment services.

Mental Health Services Act. In 2004, California voters approved Proposition 63, also known as the Mental Health Services Act. The act provides funding for various county mental health services by increasing the income tax paid by those with income above $1 million. This income tax increase raises $1.5 billion to $2.5 billion per year.

No Place Like Home Program. In 2016, the Legislature created the No Place Like Home program to build and rehabilitate housing for those with mental illness who are homeless or atrisk of becoming homeless. The state plans to pay for this housing by borrowing up to $2 billion. The state would borrow this money by selling bonds, which would be repaid with interest over about 30 years using revenues from the Mental Health Services Act. This means less funding would be available for other county mental health services. No more than $140 million of Mental Health Services Act funds could be used for No Place Like Home in any year. The bond payments would be around $120 million in a typical year.

Court Approval Needed for No Place Like Home. Before these bonds can be sold, the state must ask the courts to approve the state’s plan to pay for No Place Like Home. The courts must decide two main issues:

  • Whether using Mental Health Services Act dollars to pay for No Place Like Home goes along with what the voters wanted when they approved the Mental Health Services Act.
  • Whether voters need to approve the No Place Like Home bonds. (The State Constitution requires voters to approve certain kinds of state borrowing.)

The court decision is pending.

Proposition 2 Proposal

The measure allows the state to carry out No Place Like Home. In particular, the measure:

  • Approves the Use of Mental Health Services Act Funds for No Place Like Home. The measure says that Mental Health Services Act funds can be used for No Place Like Home. No more than $140 million of Mental Health Services Act funds could be used for No Place Like Home in any year.
  • Authorizes $2 Billion in Borrowing. The measure allows the state to sell up to $2 billion in bonds to pay for No Place Like Home. The bonds would be repaid over many years with Mental Health Services Act funds.

With this measure, the state would no longer need court approval on the issues discussed above to carry out No Place Like Home.

Source: LAO Analysis of Proposition 2

Polling

Visit Ballotpedia for summary data from recent polls and links to the complete published polls.

Berkeley IGS Polls

Voter Resources

Official California Documents

Official Voter Guide

Prop 2 - California Official Voter Guide

Campaign Finance Information

Voter's Edge Campaign Contributions: Total money raised, size of contributions, and top contributors

Power Search: Access and download data from the Secretary of State's CAL-ACCESS System

Nonpartisan Analysis

Ballotpedia

AB 1827 (Chapter 41 , Statutes of 2018). Committee on Budget. No Place Like Home Act of 2018. Legislative Analyst's Office.

Ballot Measure Guide - Prop 2. Berkeley IGS.

Proposition 2: Should California Sell Bonds Backed by County Mental Health Funds to Develop Supportive Housing for Homeless Residents With Mental Illness? California Budget & Policy Center

Multimedia
Non-Partisan
"Video Voter Series - Proposition 2" from Rose Institute of State and Local Government at Claremont McKenna College
"Video Voter Series - Proposition 2" from Rose Institute of State and Local Government at Claremont McKenna College
"Proposition 2 Explained in Under 1 Minute" from CALMatters
"Proposition 2 Explained in Under 1 Minute" from CALMatters
Share |