This week’s blog post was inspired by a reading from my health policy and management course about California’s tax on the wealthy and using the revenue to fund community based services for mental health. The state of California is acting as Robin Hood for mental health to take from the wealthy to help those who need the most. According to the article published by Kaiser Family Foundation, The Mental Health Services Act (or formerly known as Proposition 63) taxes 1% of California citizens whose annual income exceeds $1 million. It was passed into law in January 2005. Annually, this tax generates around $2 billion and since its inception has raised around $16.53 billion. The two major initiatives that are funded by this endeavor include prevention and early intervention for young adults and outcome improvement in individuals with severe mental health conditions. Results have shown that this tax has had a positive effect on the outcomes of individuals with mental health conditions. Hopefully we start to see more results come out of California and the positive outcomes that may encourage other states to adopt similar policies and move towards a culture of prevention instead of treatment of mental health.
To learn more about the law here is a link to the bill: http://www.dhcs.ca.gov/services/mh/Pages/MH_Prop63.aspx