Memorandum
Date: September 15, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: a) Consideration of 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; and b) Consideration of a Resolution amending Resolution No. 2025-118, as previously amended, to amend the FY 2025-26 Adopted Budget for Fund 141 (Substance Use Disorder Services), Budget Unit 4015, by increasing Medi-Cal/DMC-ODS revenue and appropriations by $9,975,000
Executive Summary:
This item requests approval of year-end budget amendments for Fund 145, Budget Unit 4014 (Mental Health), and Fund 141, Budget Unit 4015 (Substance Use Disorder Services). The amendments are necessary to provide sufficient revenue and appropriation authority to recognize and process Fiscal Year 2025-26 revenues, expenditures, and outstanding obligations identified through the year-end closing process.
Fund 145 – Mental Health
For Fund 145, Budget Unit 4014, the proposed amendment increases revenues and appropriations by $4,861,792. The adjustment is based on updated Specialty Mental Health Services (SMHS) Medi-Cal revenue projections and outstanding year-end service obligations.
The additional Fund 145 revenue consists of $4,032,512 in projected SMHS Medi-Cal revenue associated with approximately $4,157,229.12 in billed but not yet paid claims, reduced by the Department’s 3 percent average denial rate, and $829,280 in SMHS administrative claims submitted to the California Department of Health Care Services for reimbursement. Total additional anticipated revenue is therefore $4,861,792.
Corresponding Fund 145 appropriation increases include $2,311,792 for contracted SMHS billable provider services, $850,000 for supplies and services, and $1,700,000 for client placements. These adjustments refl...
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