The MHSA specifies that, other than Prudent Reserve dollars, funds allocated to a county that have not been spent within three years of allocation shall revert to the state for reallocation to other counties in future years. The purpose of this policy was to encourage counties to expend their allocations in a timely manner. Many counties, however, have found it challenging to meet fiscal reporting requirements that would support state oversight of timely expenditures. The Fiscal Reversion Policy Project is designed to reexamine the fiscal reporting and reversion policies to better understand how and why counties hold unspent balances in their MHSA accounts, and to explore strategies for better meeting the MHSA’s goal for timely, prudent expenditure of funds.
Materials for March 20, 2017 Subcommittee Meeting