Funds from a new county sales tax designed to pay for mental illness and drug dependency services should initially be targeted at community-based programs, jail and hospital diversion initiatives and school programs to assist youth, Bellevue City Council members said last week.

In 2005, a state law was passed authorizing counties to impose a one-tenth of 1 percent sales tax for new or expanded mental health and chemical dependency treatment services. The tax, which went into effect in 2008, is expected to generate $32.4 million this year.

During a May 27 study session, council members told staff that in the coming year, programs benefiting the homeless should be emphasized. Of the $32.4 million in 2008 tax funds expected to be collected by King County, about $18 million is being proposed to be spent on housing for homeless people facing mental illness or drug dependency challenges.

The council is expected to adopt an interest statement in the next several weeks outlining city’s other priorities for the new tax funds. Those priorities include:

Increased access to basic mental health and chemical dependency services for low-income people. The council noted that two local mental health counseling agencies were forced to close their doors in 2007 due to a lack of adequate funding;

The need to increase funding for mental health and substance abuse services in schools, and additional funding support for suicide awareness and prevention training and education;

The construction of an adult crisis diversion center, and funding for respite beds and a mobile behavioral health crisis team. Law enforcement officers from across the county should have access to the diversion center.

A final budget for the tax funds is expected to be adopted by the King County Council in late September.