OFFICIAL TITLE AND SUMMARY
Prepared by the Attorney General

Proposition 63

Mental Health Services Expansion, Funding.
Tax on Personal Incomes Above $1 Million. Initiative Statute.

• Provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults and seniors.
• Requires state to develop mental health service programs including prevention, early intervention, education and training programs.
• Creates commission to approve certain county mental health programs and expenditures.
• Imposes additional 1% tax on taxpayers' taxable personal income above $1 million to provide dedicated funding for expansion of mental health services and programs.
• Prohibits state from decreasing funding levels for mental health services below current levels.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

• Additional state revenues of about $275 million in 2004-05 (partial year), $750 million in 2005-06, $800 million in 2006-07, and probably increasing amounts annually thereafter, with comparable annual increases in expenditures by the state and counties for the expansion of mental health programs.
• Unknown state and local savings from expanded county mental health services that partly offset the cost of this measure, potentially amounting to as much as the low hundreds of millions of dollars annually.