Final State Budget Brings $5M for New Behavioral Health Pilot to Central Coast

Local plan awarded funding to support individuals with schizophrenia and anosognosia

SANTA BARBARA, Calif.--(BUSINESS WIRE)--The Central Coast healthcare community is poised to advance behavioral health innovation following the approval of California’s 2026–27 state budget. The budget includes a one-time $5 million investment for CenCal Health and the behavioral health departments of both Santa Barbara and San Luis Obispo counties to launch a groundbreaking behavioral health pilot focused on supporting individuals living with severe schizophrenia and anosognosia. The funding marks a significant milestone for CenCal Health and its community partners in a promising step forward to expand effective, community-based behavioral health care across the region.

“We want to especially recognize the vision and advocacy of Assemblymember Dawn Addis, who was steadfast in securing these resources to expand behavioral health care,” said CenCal Health CEO Marina Owen. “This is the first time CenCal Health has received pilot funding of this kind, made possible through the leadership of Toni Navarro and our county partnerships, as well as the opportunity to help inform the future direction of California’s behavioral health system.”

Anosognosia—a symptom of serious mental illnesses that impairs a person’s ability to recognize or understand their own illness—can create significant barriers to treatment engagement and recovery. This initiative will expand access to behavioral health services for anosognosia across San Luis Obispo and Santa Barbara counties through partnerships with County Behavioral Health departments, CenCal Health, and community organizations. Support will fund LEAP (Listen-Empathize-Agree-Partner®) training, strengthen family support services, enhance behavioral health crisis response and de-escalation efforts, and help ensure that all individuals can access emergency behavioral health treatment when needed.

“We are thrilled to partner with CenCal Health to bring this important pilot forward in Santa Barbara and San Luis Obispo Counties,” said Toni Navarro, Director of Santa Barbara County Department of Behavioral Wellness and CenCal Health Board member. “This compassionate, practical approach supports effective engagement with individuals living with serious mental illness, including those who may not recognize they are ill. This pilot has the potential to strengthen care locally and help inform a model for communities across California.”

Michelle Cabrera, Executive Director of County Behavioral Health Directors Association of California (CBHDA), was instrumental in partnering with local representatives to create this pilot opportunity. “CBHDA is grateful to the Governor and the legislature for their approval of this first-of-its-kind pilot, which will allow County Behavioral Health and Medi-Cal managed care plans to bring training on anosognosia to scale, to improve connections to services and ultimately save lives,” said Cabrera.

By strengthening engagement strategies, improving crisis response, and supporting individuals living with severe mental illness, the initiative aims to create a sustainable model for better outcomes on the Central Coast and help shape future behavioral health innovations across California.

“With the support of Assemblymember Addis and local behavioral health experts, CenCal Health looks forward to partnering with county agencies, providers, community organizations, and families to implement this groundbreaking pilot and expand access to compassionate, person-centered behavioral health care,” said Owen.

For more information about CenCal Health, visit https://www.cencalhealth.org/

About CenCal Health

CenCal Health is the local Medi-Cal health plan that partners with over 1,800 physicians, plus hospitals, clinics and other providers in delivering health care services to more than 225,000 members in its two-county service area – one in three residents of Santa Barbara County and one in four residents of San Luis Obispo County. Marking four decades of serving the most vulnerable, CenCal Health prioritizes cultivating community partnerships; advancing quality and health equity; expanding its service role and reach in the community; and organizing for impact and effectiveness. With a vision to be a trusted leader in advancing health equity so that the communities we serve thrive and achieve optimal health, CenCal Health invites the public to review its annual Community Report at cencalcr.org.