Posting date: May 3, 2005

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Health Affairs, 10.1377/hlthaff.w5.212
Copyright © 2005 by Project HOPE

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Millionaires And Mental Health: Proposition 63 In California

¹ Richard Scheffler directs the Nicholas C. Petris Center on Health Care Markets and Consumer Welfare at the University of California, Berkeley, where he is also a distinguished professor of health economics and public policy.
² Neal Adams is director of special projects at the California Institute of Mental Health in Sacramento.

^*Corresponding author.

Abstract

In November 2004 California passed Proposition 63, a landmark piece of mental health and fiscal legislation. This initiative places a 1 percent tax on adjusted gross income over $1 million, affecting about 30,000 taxpayers and raising $1.8 billion (a 31 percent increase) in new revenues over the first three years to support county-operated mental health systems. Our analysis suggests that Proposition 63 passed with strong support from Democrats, urban dwellers, and social workers and in counties with high rates of homelessness. Proposition 63 faces challenges in implementation and provides unprecedented opportunities for transformation and change.

Key Words: Consumer Issues, Legal/Regulatory Issues, Mental Health/Substance Abuse, State/Local Issues, Health Spending, Politics

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