Full Breakdown
Crisis at Santa Cruz Mental Health Client Action Network
9/10/2025, 1:46:14 PM
Sudden Closure Amid Funding Issues
The Mental Health Client Action Network (MHCAN) in Santa Cruz abruptly closed its doors during the week of August 25, 2023, despite having secured over half a million dollars in county funding earlier that summer. This unexpected closure has left staff members unpaid and in crisis, highlighting significant financial turmoil, leadership struggles, and stalled reimbursements within the organization. MHCAN, a peer-run refuge for individuals facing mental health challenges, had previously lobbied successfully against proposed budget cuts that threatened its existence.
Employee Hardships and Community Impact
Employees reported that they had not received paychecks since July 15, leading to severe financial hardships. One furloughed employee, who lives in their car, expressed the dire situation, stating, “We have no money. We have to figure out how we’re going to eat every day.” The closure has raised concerns about the impact on vulnerable community members who relied on MHCAN for support and stability. The organization was particularly noted for its unique approach, requiring both staff and clients to self-disclose mental health issues, fostering a judgment-free environment.
Leadership Changes and Accountability
The closure followed the board's decision to fire Executive Director Tyler Starkman, citing chronic absenteeism and a lack of organizational transparency. Starkman, who had requested medical leave for a detox program just before his termination, attributed the missed paychecks to delays in reimbursements from the county and stringent reporting requirements imposed after an audit. He claimed that these issues were inherited and exacerbated by his abrupt dismissal, which he believes could lead to further financial instability for MHCAN.
Official Statements and Responses
Danette Lawrence, MHCAN’s board chair, confirmed the organization's struggles but refrained from providing specific details, stating, “It’s really not good. We’re going to need a full overhaul and to clean stuff up.” District 3 County Supervisor Justin Cummings expressed shock at the closure, emphasizing the need for clarity on the challenges facing MHCAN. Both Lawrence and Cummings indicated plans to meet with city and county officials to explore solutions for reopening the organization.
Criticism and Opposition
Critics of the board's handling of MHCAN's operations have raised concerns about the lack of communication and transparency regarding the organization's financial health. Employees have voiced frustrations over the board's decision-making process, particularly regarding Starkman's firing and the subsequent impact on staff and clients.
What's Next for MHCAN?
In light of the closure, MHCAN's leadership is set to meet with local officials to discuss potential pathways for reopening and stabilizing the organization. The outcome of these discussions will be crucial for the future of mental health services in Santa Cruz County, as the community grapples with the broader implications of funding decisions and service delivery in a challenging economic climate.
Verbatim Quotes
- “At first, we were like, we will give them time to figure it out, but they haven’t.” — Furloughed Employee
- “I don’t have anything to say to employees, I don’t know what to say,” — Danette Lawrence, Board Chair
- “These systemic issues were further compounded by” his firing, “which I feel was based upon my request to go to rehab,” Starkman said.” — Tyler Starkman, Former Executive Director
The closure of MHCAN serves as a stark reminder of the fragility of mental health services and the critical need for sustainable funding and effective leadership in community organizations.