The purpose of this study was to analyze Proposition 63, which later became the Mental Health Serviced Act (MHSA) of 2004. This legislation imposed a 1% increase in taxes for California residents with adjusted gross annual income over $1 million. MHSA provided funding to expand the mental health programs and services including prevention, early intervention, education and training programs. The analysis intended to explore the benefits and consequences of the tax increase, and how mental health services were impacted under MHSA. This study scrutinized a historical review of mental health services in the United States, in the first years of the 20th Century, Deinstitutionalization, and enactment of policies related to mental health. Using David Gil's 1992 modified policy analysis framework, the analysis concluded that the MHSA legislation has potentially increased mental health services for individuals with mental illness and their families. However, this study also found that the lawmakers failed to provide proper guidance for effective program evaluation.