County Official Hit for Not Using Mental Health Funds

The state’s Little Hoover Commission on Wednesday criticized Los Angeles County’s director of mental health for his failure to spend $3 million of a $5-million state grant to combat the growing problem of mentally ill homeless people.

At a hearing of the state watchdog commission that is examining the issue of homeless mentally ill, commissioners one after another raked Mental Health Director Roberto Quiroz for not developing programs that could have used the available funds for fiscal 1986-1987.

“When I drive around and see people in need of tremendous help and (think that) the county had the money in its hand and gave it back, it is outrageous,” said Nathan Shapell, chairman of the commission.

Assemblywoman Gwen Moore (D-Los Angeles), a commission member, said the county was not “thoughtful” or “forceful” enough to create new programs that would have qualified for the one-year state funding.

Commissioner Albert Gersten accused Quiroz of not keeping the county supervisors informed on his plans. “Next time, I suggest you ask the supervisors before you give back $3 million,” Gersten said.

Quiroz defended his decisions and the county’s record, saying the funds were returned only after the state turned down two proposals.

He said the state program had so many strings attached to it that the county’s two highest priorities--emergency shelter beds and mental health treatment for young adults--could not get state funding approval.

After those proposals were turned down, Quiroz said, “I did not feel I should irresponsibly expend the money” on just any program. “I could get whomped on the head for giving back $3 million or whomped on the head for spending it on inappropriate programs.”

Quiroz said it would also be irresponsible to “mount (new) programs for the fiscal year, only to be faced with no further funding at year end.” The department did fund $2 million in new programs under the state plan. The Mental Health Services Act of 1985 provided funds for just one year and the funds could not be spent on existing, ongoing programs.

Still, Commissioner Haig Mardikian said: “An embarrassment of riches existed . . . and there was a crying need, but there was no planning to take advantage of it.”

Quiroz said that as a result of the funding problem, he initiated work on a mental health master plan for the county that was just recently completed. He said that if the county is faced with a similar funding opportunity, there would be a wealth of program proposals to file with the state.

Walter Watson, homeless programs coordinator for the state Department of Mental Health, defended Quiroz and Los Angeles County. He testified that more than 20 other counties--including Orange--also returned unused funds.