--- title: "Psych News Alert: Is California's \"Millionaire Tax\" Working to Improve Mental Health Treatment?" description:   Robert Biedermann/Shutterstock The Bay Area News Group has released an analysis of spending under California's Mental Health Services ... image: https://alert.psychnews.org/hubfs/Imported_Blog_Media/ca-Jun-24-2025-03-48-26-8539-PM.gif --- 7/1/11 12:00 AM # Is California's "Millionaire Tax" Working to Improve Mental Health Treatment? ![Picture of Psychiatric News Alert](https://alert.psychnews.org/hs-fs/hubfs/Psych%20News%20Email%20Banners/PN-Blue-Box_rgb.png?width=50&name=PN-Blue-Box_rgb.png) [ Psychiatric News Alert ](https://alert.psychnews.org/author/psychiatric-news-alert) Share: [facebook-f icon ](http://www.facebook.com/share.php?u=https://alert.psychnews.org/2011/07/is-california-tax-working-to-improve.html) [linkedin-in icon ](http://www.linkedin.com/shareArticle?mini=true&url=https://alert.psychnews.org/2011/07/is-california-tax-working-to-improve.html) [Twitter icon ](https://twitter.com/intent/tweet?url=https://alert.psychnews.org/2011/07/is-california-tax-working-to-improve.html) [pinterest-p icon ](http://pinterest.com/pin/create/link/?url=https://alert.psychnews.org/2011/07/is-california-tax-working-to-improve.html) [envelope icon ](mailto:?body=https://alert.psychnews.org/2011/07/is-california-tax-working-to-improve.html) |  [![](https://alert.psychnews.org/hubfs/Imported_Blog_Media/ca-Jun-24-2025-03-48-27-8866-PM.gif)](https://alert.psychnews.org/hubfs/Imported_Blog_Media/ca-Jun-24-2025-03-48-27-8866-PM.gif) | | --- | | Robert Biedermann/Shutterstock | The Bay Area News Group has released an analysis of spending under California's Mental Health Services Act of 2004 (Proposition 63, known as the the Millionaire's Tax), concluding that much of the funding has gone to consultants and programs not directly linked to prevention, treatment, and recovery. Designed to raise funds for new and expanded county mental health programming through a tax on residents earning more than $1 million annually, the measure has raised $7.4 billion. However, the analysis asserts that state regulations have made it increasingly difficult for counties to use the fund to expand existing programs, resulting in a two-tiered system in which beneficiaries of older programs receive inadequate care, while those served under new programs receive high-quality care.  That runs counter to the findings of a study in the October 2010, *Psychiatric Services* that found that in the wake of the new tax and distribution of funds to county programs, involuntary inpatient admission to psychiatric hospitals had dropped 10 percent below their expected levels. For more information about the study and about California’s innovative effort see *Psychiatric News* at [http://pn.psychiatryonline.org/content/45/20/10.1.full](http://pn.psychiatryonline.org/content/45/20/10.1.full). [California](https://alert.psychnews.org/tag/california), [mental illness](https://alert.psychnews.org/tag/mental-illness), [healthcare reform](https://alert.psychnews.org/tag/healthcare-reform), [taxation](https://alert.psychnews.org/tag/taxation) ## Related posts [![](https://alert.psychnews.org/hs-fs/hubfs/Imported_Blog_Media/welcome%20to%20Calif__33885607-Jun-24-2025-07-37-05-3441-PM.jpg?height=200&name=welcome%20to%20Calif__33885607-Jun-24-2025-07-37-05-3441-PM.jpg) ](https://alert.psychnews.org/2011/12/less-than-half-of-californias-mentally.html) [California](https://alert.psychnews.org/tag/california) ## [Less Than Half of California’s Mentally Ill Get Treatment](https://alert.psychnews.org/2011/12/less-than-half-of-californias-mentally.html) ![Picture of Psychiatric News Alert](https://alert.psychnews.org/hs-fs/hubfs/Psych%20News%20Email%20Banners/PN-Blue-Box_rgb.png?width=50&name=PN-Blue-Box_rgb.png) [Psychiatric News Alert](https://alert.psychnews.org/author/psychiatric-news-alert) 12/6/11 12:00 AM [ Read more ](https://alert.psychnews.org/2011/12/less-than-half-of-californias-mentally.html) [![](https://alert.psychnews.org/hs-fs/hubfs/Imported_Blog_Media/shutterstock_116361850-Jun-24-2025-07-38-00-2460-PM.jpg?height=200&name=shutterstock_116361850-Jun-24-2025-07-38-00-2460-PM.jpg) ](https://alert.psychnews.org/2013/01/adhd-diagnoses-in-california-health.html) [ADHD](https://alert.psychnews.org/tag/adhd), [California](https://alert.psychnews.org/tag/california) ## [ADHD Diagnoses in California Health Plan Jump 24 Percent in 10 Years](https://alert.psychnews.org/2013/01/adhd-diagnoses-in-california-health.html) ![Picture of Psychiatric News Alert](https://alert.psychnews.org/hs-fs/hubfs/Psych%20News%20Email%20Banners/PN-Blue-Box_rgb.png?width=50&name=PN-Blue-Box_rgb.png) [Psychiatric News Alert](https://alert.psychnews.org/author/psychiatric-news-alert) 1/22/13 12:00 AM Rates of diagnosis of ADHD among children in a large California health plan jumped 24 percent from... [ Read more ](https://alert.psychnews.org/2013/01/adhd-diagnoses-in-california-health.html) [![](https://alert.psychnews.org/hs-fs/hubfs/Imported_Blog_Media/AVvXsEhRB3SHMt8UXdqi57UnNEZBXxTMZBQwhMxTTmhAH4P2LUZ7fbP3KT37AN_RwBmoylofLniiBjhczd0Nn_dvnzXvEBufKv6dsfHDTFA5nZKu1g6d-cTib0EK6EF3RJg1LVWeScchaFHiIG7IO-Jun-24-2025-09-19-57-8950-PM.jpg?height=200&name=AVvXsEhRB3SHMt8UXdqi57UnNEZBXxTMZBQwhMxTTmhAH4P2LUZ7fbP3KT37AN_RwBmoylofLniiBjhczd0Nn_dvnzXvEBufKv6dsfHDTFA5nZKu1g6d-cTib0EK6EF3RJg1LVWeScchaFHiIG7IO-Jun-24-2025-09-19-57-8950-PM.jpg) ](https://alert.psychnews.org/2025/02/emergency-clinicians-in-california.html) [OUD](https://alert.psychnews.org/tag/oud), [opioid use disorder](https://alert.psychnews.org/tag/opioid-use-disorder), [California](https://alert.psychnews.org/tag/california), [buprenorphine](https://alert.psychnews.org/tag/buprenorphine), [emergency department](https://alert.psychnews.org/tag/emergency-department), [prescription](https://alert.psychnews.org/tag/prescription) ## [Emergency Clinicians in California Increased Rate of Buprenorphine Prescriptions](https://alert.psychnews.org/2025/02/emergency-clinicians-in-california.html) ![Picture of Psychiatric News Alert](https://alert.psychnews.org/hs-fs/hubfs/Psych%20News%20Email%20Banners/PN-Blue-Box_rgb.png?width=50&name=PN-Blue-Box_rgb.png) [Psychiatric News Alert](https://alert.psychnews.org/author/psychiatric-news-alert) 2/21/25 12:00 AM [ Read more ](https://alert.psychnews.org/2025/02/emergency-clinicians-in-california.html) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Psychiatric News Alert", "url" : "https://alert.psychnews.org/author/psychiatric-news-alert" }, "dateModified" : "2025-06-24T15:50:11.460Z", "datePublished" : "2011-07-01T04:00:00.000Z", "headline" : "Psych News Alert: Is California's \"Millionaire Tax\" Working to Improve Mental Health Treatment?", "image" : [ "https://alert.psychnews.org/hubfs/Imported_Blog_Media/ca-Jun-24-2025-03-48-26-8539-PM.gif" ], "mainEntityOfPage" : { "@id" : "https://alert.psychnews.org/2011/07/is-california-tax-working-to-improve.html", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://alert.psychnews.org/hubfs/PN-Blue-Box.jpg" } } } ```