Memorandum
Date: October 6, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Consideration of two proposed options for Amendment No. 3 to Resolution No. 2025-74 establishing a seven-year repayment plan for the outstanding $2,000,000 General Fund loan to Lake County Behavioral Health Services
Executive Summary
Lake County Behavioral Health Services (LCBHS) previously experienced significant cash-flow constraints associated with implementation of the California Mental Health Services Authority Semi-Statewide Enterprise Health Record, delayed Medi-Cal claiming and reimbursement, Medi-Cal payment reform, Intergovernmental Transfer requirements, and timing delays associated with State and federal reimbursement.
On or about March 19, 2024, the Board of Supervisors adopted Resolution No. 2024-32 authorizing a short-term General Fund loan to LCBHS to support operational cash flow during a period of delayed claims processing and reimbursement. LCBHS subsequently repaid a portion of the original loan amount, leaving an outstanding balance of $2,000,000 owed to the County General Fund. This chronology is also reflected in the recitals of both proposed resolutions.
On June 17, 2025, the Board adopted Resolution No. 2025-74 authorizing a $2,000,000 short-term General Fund loan to LCBHS. On September 16, 2025, the Board adopted Resolution No. 2025-115 extending the repayment deadline in recognition of continued cash-flow constraints associated with the Medi-Cal Intergovernmental Transfer process and timing of reimbursements.
LCBHS has continued to prioritize service continuity, provider stability, workforce payroll, mandated behavioral health services, and required Medi-Cal financing obligations while working toward fiscal stabilization. The Board subsequently considered repayment options for the outstanding $2,000,000 balance and directed staff to return with a formal mechanism providing for repaym...
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