Mental Health Services Act: Revenue Volatility and the Governor’s Proposal to Reduce Allowable County Reserves

Jul 13, 2023 - We note that there ar e reasonable arguments for setting a more or a less robust reserve policy. …As Should Withdrawal and Deposit Rules. While a rainy-day fund designed for a relatively stable revenue stream might be reasonably focused on economic recessions, the historical experience with MHSA suggests that an effective withdrawal policy would allow counties to access reserves during economic expansions as well.
https://lao.ca.gov/Publications/Report/4780