This report follows up on findings and recommendations from JLARC’s 2000 performance audit of the state’s public mental health system. The Mental Health Division has just completed a legislatively mandated study on the prevalence of serious mental illness within the state. JLARC’s memorandum reviews pertinent background information from the 2000 audit, highlights some of this recent prevalence study’s key results, and discusses implications related to the funding of Washington’s public mental health system.