Section 3420.35 - Prudent Reserve Transfers to Css Account and Pei Account(a) A County may transfer funds from its Prudent Reserve into its CSS Account and/or PEI Account in a year in which the condition in paragraph (1) is met. A County shall transfer funds from its Prudent Reserve into its CSS Account in a year in which the conditions in paragraph (2) are met. These transfers shall be permissible even when it results in a County's Prudent Reserve falling below the minimum funding level as calculated pursuant to section 3420.30(b). (1) The Department determines revenues for the Mental Health Services Fund are below the average of the five (5) previous fiscal years adjusted by changes in the state population and the California Consumer Price Index.(2) The County's projected allocation of funds for the CSS Account is not sufficient to continue to serve the same number of individuals the County served in the previous fiscal year under the following CSS service categories: Full Service Partnership, General System Development, and Outreach and Engagement. A County shall base the County's projected allocation of funds for the CSS Account on the total projected revenue for the Mental Health Services Fund, as reported in the Governor's Budget--HHS 1, State Department of Health Care Services, Fund Condition Statements found at http://www.ebudget.ca.gov. (A) A County, at the beginning of each fiscal year, shall determine the number of children, adults, and seniors the County served under the CSS service categories specified in paragraph (2) during the previous fiscal year and project the cost of serving the same number of children, adults, and seniors under the CSS service categories specified in paragraph (2) in the current fiscal year.(B) A County shall transfer funds from its Prudent Reserve to its CSS Account in the amount of the difference between the projected allocation of funds and the projected cost of services, if the projected cost of services is greater than the projected allocation of funds pursuant to section 3420(b)(3). If the balance of the Prudent Reserve is less than the difference between the projected allocation of funds and the projected cost, the County shall transfer the entire balance of funds in the Prudent Reserve to the CSS Account. The County's projected allocation of funds for the CSS Account shall be based on the total projected revenue for the Mental Health Services Fund, as reported in the Governor's Budget--HHS 1, State Department of Health Care Services, Fund Condition Statements found at http://www.ebudget.ca.gov.(3) A County shall maintain records that support the determination and process described in paragraphs (1) and (2).(b) If a County transfers funds from the Prudent Reserve, the County shall include the transfer, including the component account(s) receiving the transfer and the amount transferred from the Prudent Reserve, in its next Three-Year Program and Expenditure Plan, annual update, or updates pursuant to sections 3310 and 3315.(c) A County shall not transfer funds from the CSS Account into its PEI Account, CFTN Account or WET Account during the same fiscal year in which the County transfers funds from its Prudent Reserve into its CSS Account pursuant to this section.(d) A County shall report on the Annual MHSA Revenue and Expenditure Report each transfer of funds from the Prudent Reserve into the CSS Account or the PEI Account.Cal. Code Regs. Tit. 9, § 3420.35
1. New section filed 5-6-2020; operative 7-1-2020 (Register 2020, No. 19). Note: Authority cited: Section 5898, Welfare and Institutions Code. Reference: Sections 5847(b)(7), 5847(f), 5848, 5891(d), 5892(b), 5892(g), 5899(a), 5899(c)(1), 5899(d)(1), 5899(d)(2) and 5899(d)(5), Welfare and Institutions Code.
1. New section filed 5-6-2020; operative 7/1/2020 (Register 2020, No. 19).