Memorandum
Date: August 25, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Adopt a Resolution amending Resolution No. 2025-118, as previously amended, to amend the FY 2025-26 Adopted Budget for Fund 145 (Mental Health), Budget Unit 4014, by increasing revenues and appropriations by $4,861,792 to finalize fiscal year-end obligations.
Executive Summary:
As part of the fiscal year-end closing process, Lake County Behavioral Health Services reviewed the remaining appropriations and outstanding obligations in Fund 145 (Mental Health), Budget Unit 4014. The review identified that additional budget authority is required to process contracted provider services, supplies and services, and client placement costs before year-end close.
Known unprocessed obligations in accounts 740.23-80, 740.28-30, and 740.40-70 total approximately $6.34 million, compared with approximately $3.45 million in remaining budget authority. The resulting minimum appropriation shortfall is approximately $2.88 million.
To ensure sufficient authority to finalize year-end and cover additional invoices that may be received during the closing process, the Department requests a total appropriation increase of $4,861,792. This includes $2,311,792 for contracted Specialty Mental Health Services (SMHS) billable provider services, $850,000 for supplies and services, and $1,700,000 for client placements. The requested increase provides approximately $1.98 million above the currently identified minimum shortfall for additional valid year-end obligations.
The corresponding revenue increase, recorded in account 452.53-60, includes $829,280 for SMHS administrative claims submitted to the California Department of Health Care Services for reimbursement and $4,032,512 in additional SMHS Medi-Cal revenue. The Medi-Cal projection is based on $4,157,229.12 in billed but not yet paid SMHS Medi-Cal claims, reduced by the Department's 3% average denial rate.
The proposed revenue and appropriation increases balance at $4,861,792 and are necessary to align the FY 2025-26 Adopted Budget with current service activity and outstanding fiscal year-end obligations. The Department expects the underlying FY 2025-26 services, associated claims, and related obligations to be recognized within the County's applicable year-end accrual periods.
The requested adjustment provides budget authority only for current-year obligations and does not authorize new contracts, placements, or services beyond those otherwise approved by the County.
No reserve transfer or discretionary General Fund contribution is requested. The amendment is supported by anticipated State and Federal Medi-Cal revenues administered through Behavioral Health Services.
This amendment does not represent an immediate cash need. It establishes budget authority and recognizes anticipated FY 2025-26 revenue and expenditures; cash receipts and payments will occur through the normal Medi-Cal claiming and County payment cycles. Approval is requested to allow the Department and Auditor-Controller to complete fiscal year-end processing and accurately align appropriations and revenue with current-year obligations.
If not budgeted, fill in the blanks below only:
Estimated Cost: $4,861.792 Amount Budgeted: $0 Additional Requested: $4,861,792 Future Annual Cost: $0
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Recommended Action: Adopt a Resolution amending Resolution No. 2025-118, as previously amended, to amend the FY 2025-26 Adopted Budget for Fund 145 (Mental Health), Budget Unit 4014, by increasing revenues and appropriations by $4,861,792 to finalize fiscal year-end obligations.