Whistleblower Complaints: POST HERE


MediCal does not recognize Mental Illness as a legitimate medical condition.

California creates a second class, separate system for mental illness treatment–the federal government grants the state a “waiver” to isolate public mental health from mainstream medicine.

MediCal guarantees “medically necessary treatments” for physical illnesses–but denies this right for mental illnesses. NO guarantees of timely access and quality standards of care.



  • Help build the public record to support change.  
  • Consumers, Families, Front-line Providers–Fight Discrimination, Report the Consequences.
  • Blow the Whistle on Discrimination that you see and experience.




November 2, 2009 Ms Elaine M. Howle, California State Auditor Investigations, California Bureau of State Audits

RE:  Whistleblower Complaint Report

Dear Ms Howle: I assert in this complaint that state implementation of the voter-enacted statute known as the Mental Health Services Act (MHSA, Proposition 63, November 2004) is characterized by incompetence, waste, mismanagement, and costly inefficiencies as a result of a willful failure to comply with the language and intent of the law. I believe that arbitrary state policies and regulations developed and promulgated by the Department of Mental Health (DMH) and Director Dr. Stephen W. Mayberg continue to waste state revenues at a time of critical need for mental health services.  DMH policies are creating potential opportunities for conflicts of interest at state and local levels, promoting false and misleading interpretations of law, and causing delays and confusion in county mental health systems, which can result in harming the health and very lives of Californians.

The State of California has violated a trust with voters who enacted the MHSA, a majority of whom cast their votes in favor of the clear language and intent of the law as determined by the published Legislative Analyst’s Analysis, provided in November 2004 Voter Pamphlets.  The clear requirements for implementation explained in the analysis have legal standing as noted in related Attorney General Opinion No. 05-1007 of February 21, 2006. As a consultant to the California Attorney General in 2005-07, I witnessed and reported on issues of noncompliance and widespread waste and inefficiency, affirmed in a state Department of Finance Performance Audit of May 2008.

  • Five years after enactment, DMH has not produced an implementation plan.
  • DMH has not complied with requirements for Integrated Systems of Care.
  • The State is financing an arbitrary and noncompliant two-tier mental health system, the subject of public grievances and a source of waste and inefficiency.
  • MHSA planning supports an industry of contractors, consultants, committees, conferences, reports, reviews, focus groups, also the subject of grievances.

MHSA revenue is creating a separate, new tier of “Cadillac” mental health programs for newly recruited clients.  The existing lower tier of programs continues to deteriorate, service and access declines, and current consumers are denied adequate treatment. In defiance of logic and the law, DMH requires counties to establish a separate, new bureaucracy of programs to obtain MHSA funds.  DMH created funding categories and objectives not found in the MHSA, and instructed counties to spend a majority of funds on this new system. State auditors analyzed the management of MHSA and surveyed county mental health directors, concluding in May 2008:   “DMH should develop a plan to address the observations and recommendations noted in this report.  Implementing our recommendations will enable DMH to fulfill the intent of the MHSA and allow counties to readily implement programs and services to effectively treat and support the mentally ill.”   The state DMH did not follow this recommendation. DMH declared that the complexity of the law prohibited compliance with requirements for integrated plans—an admission that should have called for intervention by the Secretary of Health and Human Services.  By acts of both omission and commission on behalf of the State of California, I believe the Department of Mental Health fails to efficiently manage and direct implementation.  I allege that improper actions, including those in conflict with the law, by the Director and an unknown number of his senior aides, have wasted time and money and harmed the health and lives of an unknown number of Californians.  I believe the magnitude of continued waste and mismanagement of tax revenues warrant the attention of the California State Auditor.  And the people of California who earnestly intended to improve community mental health services deserve the honest results they hoped for, and voted for.

Sincerely, Rosemarie King, Complainant

The following complaint follows the guidelines of the Whistleblower Complaint Report provided by the office of the State Auditor  Consequences of Noncompliance:

  • Development of an unnecessary, costly, new bureaucracy in the Department of Mental Health (DMH), related state agencies, and in every county, due to arbitrary, unfounded, and discriminatory state policies;
  • Waste of tax revenue fostering a vast and unnecessary planning, meeting, consulting, conferencing industry at state and county levels;
  • An ad-hoc structure and process, with no defined boundaries or standards of care, inviting conflicts-of-interest, special interest dominance, and a proliferation of private contracting that impedes accountability;
  • The county mental health “Systems of Care” to be expanded with MHSA tax revenue have significantly deteriorated in quality of service and capacity, county executives predict increases in suicides and incarcerations as a result of denying treatment, and the state of emergency accelerates.
  • Five years of planning, $48.5 million annual state administrative costs, a critical state audit, and 16 oversight commissioners have not implemented the law or produced an accountability report. There is no end in sight and none predicted.

Violations of the law are arbitrary, undocumented, opposed by stakeholders, and sharply criticized in a 2008 OSAE audit. Noncompliance is not supported by policy research, government studies, best practices, or public demand. Policies are not compatible with recommendations of state government reports of this decade, published by the California Little Hoover Commission, California Mental Health Planning Council, and Joint Legislative Committee on Mental Health Reform. Components of the integrated plan are stipulated in MHSA“Integrated Plans for Prevention, Innovation and System of Care Services” (Sections 5847 and 5848 added to W&I codes). The funding schedule and program provisions of the law call for a single implementation plan in each county; infrastructure components support Systems of Care expansion and delivery of services. “Systems of Care” for children, adults, and older adults are a specific model of delivering mental health services, developed and codified in California statutes over a period of more than 20 years, with broad participation of mental health community interests. Systems of Care are “client-centered, culturally competent, and fully accountable” (W&I code 5600.2). Systems of Care provide for a specified range of treatment options, are based upon specific principles and recovery/treatment philosophy, and emphasize the importance of coordinated, comprehensive, and integrated services (W&I code 5802). Expansion of A Proven Model  is the essential purpose of MHSA. The stated purpose of expanding integrated Systems of Care is to provide client and cost-effective services to  consumers of every age, in every county, now denied essential treatment because of inadequate funding. W&I codes state that a System of Care “…is vital for successful management of mental health care in California….” Integration and collaboration are primary elements of success.   standards such as those codified in Systems of Care. There is no guarantee of proper service for individuals in these programs—and now the state and counties discuss methods of expanding these “comprehensive” programs to serve more people with the same amount of money. There is no measure of the possible outcome…………………………………………………………

Thank you for your consideration. I will continue to seek and forward any other evidence to support my allegations.


Rosemarie King


WITNESSES WHO DIRECTLY OBSERVED OR MAY BE A PARTY TO DMH DECISIONS, POLICIES, PRACTICES.  As a Principal Consultant on Mental Health for Attorney General Bill Lockyer in 2005 and 2006, I discussed my ongoing concerns and interacted with the principal DMH employees, and with the 2005-06 Principal Consultant and the 2006 Executive Director of the MHSA Oversight and Accountability Commission, as well as individual commissioners, all of whom represented the Department or the Commission in public and private meetings. As lead personnel, I believe they participated in and witnessed the allegations made in this complaint. Ms. Carol Hood, retired from state service, former Director of the Mental Health Services Act, Community Program Development, California Dept of Mental Health, currently employed by the MHSA Oversight and Accountability Commission, 1300 17th Street, Suite 1000, Sacramento, CA 95814; 916-654-3551.  www.dmh.ca.gov/prop63/MHSA/ Mr. Michael Borunda, former Assistant Deputy Director, Community Services, California Dept of Mental Health, currently Executive Committee, Mental Health Planning Council, Department of Mental Health, 1600 9th Street, Room 151, Sacramento, CA  95814; 916-654-3890.  www.cahwnet.gov/Mental_Health_Planning_Council/ Mr. Richard Van Horn, former Principal Consultant to MHSA Oversight and Accountability Commission, and presently an appointed MHSA Commissioner, 1300 17th Street, Suite 1000, Sacramento, CA  95814; 916-654-3551.  He is also President and Chief Executive Officer of the Mental Health America of Los Angeles.  www.dmh.cahwnet.gov/MHSOAC/ Ms. Jennifer Clancy, Executive Director of MHSA Oversight and Accountability Commission, 2006-2008, and presently contractor with the California Institute of Mental Health, 2125 – 19th Street, Sacramento CA  95818; 916-556-3480.   www.cimh.org Ms. Beverly Whitcomb, Acting Executive Director, Mental Health Services Oversight and Accountability Commission, 1300 17th Street, Suite 1000, Sacramento, CA  95814; 916-445-8728.   www.dmh.cahwnet.gov/MHSOAC/ WITNESSES  who observed some or all elements of allegations. Ms Sheri Whitt, Executive Director (2008-09), Mental Health Services Oversight and Accountability Commission, 1300 17th Street, Suite 1000, Sacramento, CA 95811; 916-445-8729 (resigned July 2009) Ms Patricia Wynne, member of the MHSA Oversight and Accountability Commission as designee for then-Attorney General Bill Lockyer in 2005-06, presently Deputy State Treasurer, 915 Capitol Mall, Sacramento, CA  95814; 916- 657-3218. www.treasurer.ca.gov/ Ms Dede Ranahan, consultant to NAMI CA on MHSA, 1010 Hurley Way, Suite 195, Sacramento CA  95825; 916-567-0163.   www.namicalifornia.org Ms Pat Ryan, Executive Director and registered advocate, California Mental Health Directors Association, 2125- 19th Street, 2nd Floor, Sacramento CA  95816; 916-556-3477.  www.cmhda.org Mr. Rusty Selix, Prop 63 proponent, Executive Director and Legislative Advocate for the California Association of Councils of Governments (CALCOG), California Council of Community Mental Health Agencies (CCCMHA), Mental Health Association in California and the Association of Retired Teachers, 1127 11th Street, #925, Sacramento, CA  95814; 916-447-2350.   www.cccmha.org/ Ms. Ann Arneill-Py, Executive Officer, California Mental Health Planning Council, 1600 9th Street, #350, Sacramento, CA  95814; 916-445-1198.   www.cahwnet.gov/Mental_Health_Planning_Council/ All Commissioners and their designees serving on the MHSA Oversight and Accountability Commission during the years of 2007, 2008 through April 2009. See Attached below. Some witnesses listed here may well challenge my allegations.  I do not believe anyone can challenge the record of incompetence and mismanagement that is responsible for the tremendous loss of time and money intended to serve Californians with mental illnesses. Time and money, and lives, may never be recovered.  Some may argue in favor of the policies resulting in undeniable waste and inefficiency, extended delays, and misuse of resources.  Witnesses may suggest that the present policies can eventually become efficient, despite the clear deviation from intent of the law.  If incompetence is not the chief source of implementation failures, then only an elaborate deception could explain the State’s failure to perform, and I could only speculate about those purposes.

MHSA Oversight and Accountability Commission

Sixteen members have been appointed to the Mental Health Services Oversight and Accountability Commission (MHSOAC. Twelve members have been appointed by Governor Arnold Schwarzenegger, joining four State government appointed officials. The Commission advises the governor and legislature regarding actions the State may take to improve care and services for people with mental illness, and is required to annually review and approve each county mental health program for expenditures. Whenever the commission identifies a critical issue related to the performance of a county mental health program, it may refer the issue to the DMH. The first meeting of the MHSOAC was held July 7, 2005, at which time Proposition 63 author Darrell Steinberg was selected unanimously by fellow commissioners as chairman, without comment or discussion.

MHSOAC commissioners

In accordance with MHSA requirements, the Commission shall consist of 16 voting members as follows:

  1. The Attorney General or his or her designee
  2. The Superintendent of Public Instruction or his or her designee
  3. The Chairperson of the Senate Health and Human Services Committee or another member of the Senate selected by the President pro Tempore of the Senate
  4. The Chairperson of the Assembly Health Committee or another member of the Assembly selected by the Speaker of the Assembly
  5. Twelve appointees of the Governor, who shall seek individuals who have had personal or family experience with mental illness, to include:
  • two persons with a severe mental illness
  • a family member of an adult or senior with a severe mental illness
  • a family member of a child who has or has had a severe mental illness
  • a physician specializing in alcohol and drug treatment
  • a mental health professional
  • a county Sheriff,
  • a Superintendent of a school district
  • a representative of a labor organization
  • a representative of an employer with less than 500 employees
  • a representative of an employer with more than 500 employees
  • a representative of a health care services plan or insurer
  •  State government appointees

The initial government officials and designee appointed:

  • Senator Wesley Chesbro (Democrat), of Arcata, chair of the Senate Budget and Fiscal Review Committee and the Senate Select Committee on Developmental Disabilities and Mental Health.
  • Assemblyman Mark Ridley-Thomas (Dem), of Los Angeles, a member of the Assembly Health committee and former L.A. city councilman.
  • Attorney General Bill Lockyer, of Hayward, a former State Senator and Assemblyman.
  • Darrell Steinberg (Dem), of Sacramento, an attorney, the author of Proposition 63, former Assemblyman. Steinberg is the appointee of the Superintendent of Public Instruction.

Governor’s appointees

On June 21, 2005, Governor Schwarzenegger announced his appointment of twelve appointees to the MHOAC:

  • MHOAC Vice Chairman Linford Gayle (declined to state party), 46, of Pacifica, a mental health program specialist at San Mateo County Mental Health Services.
  • Karen Henry (Republican), 61, of Granite Bay, a labor attorney and a board member of California National Alliance for the Mentally Ill (NAMI). Henry is afflicted by ‘rapid cycling’ bipolar disorder, has a son who has autism, and another son with a mental illness.
  • William Kolender (Rep), 70, of San Diego, the San Diego County Sheriff and president of the State Sheriffs Association, a member of the State Board of Corrections, and was for three years the director of the California Youth Authority (CYA). Kolender’s wife died as a result of mental illness, and he has a son with a mental disorder.
  • Kelvin Lee, Ed.D. (Rep), 58, of Roseville, a superintendent of the Dry Creek Joint Elementary School District.
  • Andrew Poat (Rep), 45, of San Diego, director of the government relations department for the City of San Diego, a member of the public policy committee for the San Diego Gay and Lesbian Center, and a former deputy director of the United States Office of Consumer Affairs. Poat represents employers of more than 500 workers on the commission, and says he will use his experience building multi-million dollar programs to bring together mental health advocates.
  • Darlene Prettyman (Rep), 71, of Bakersfield, is a psychiatric nurse, a board member and past president of NAMI California, and a past chairman and a member of the California Mental Health Planning Council. Her son has schizophrenia, and her stated priority is to enhance provision of housing for mental health service clients.
  • Carmen Diaz (Dem), 53, of Los Angeles, a family advocate coordinator with the L.A. County Department of Mental Health and a board member of United Advocates for Children of California. Diaz has a family member with a severe mental illness.
  • F. Jerome Doyle (Dem), 64, of Los Gatos, is chief executive officer of EMQ (a provider of mental health services for children and youth), a board member and past president of the California Council of Community Mental Health Agencies, and a board member of California Mental Health Advocates for Children.
  • Saul Feldman DPA, (Dem), 75, of San Francisco, is chairman and CEO of United Behavioral Health, a member of the American Psychological Association, the founder and former president of the American College of Mental Health Administration, and a former president and CEO of Health America Corporation of California. Feldman was appointed as a health care plan insurer.
  • Gary Jaeger, M.D. (Dem), 62, of Harbor City, is currently the chief of addiction medicine at Kaiser Foundation Hospital, South Bay, a member and former chair of the Behavioral Health Advisory Board of the California Healthcare Association, and former medical director of family recovery services at St. Joseph Hospital in Eureka. He says members of his family have an “80 percent rate of drug and alcohol abuse.”
  • Mary Hayashi (Dem), 38, of Castro Valley, president of the Iris Alliance Fund and a board member for Planned Parenthood Golden Gate and member of the Board of Registered Nursing. Hayashi’s concerns include transportation access for clients and paratransit services, and represents employers with 500 or fewer workers.
  • Patrick Henning (Dem), 32, of West Sacramento, is the legislative advocate for the California Council of Laborers. He was previously the Assistant Secretary at the Labor and Workforce Development Agency (An Agency that he helped create), deputy director for the Department of Industrial Relations and Prior to his State service Special Advisor and Congressional Liaison to President Bill Clinton. Henning is a member of the Career Technical Education Standards and Framework Advisory Group and the California Assembly Speaker’s Commission on Labor Education. He represents labor.

Additional Witnesses Sheri Whitt, former E.D. MHSAOAC Sergio Aguilar-Gaxiola MD, PhD, Director Center for Reducing Health Disparities at the University of California, Davis


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