PK, what exactly is it you're pushing for? Certainly you understand that these changes won't occur overnight, as much as all of us would like for that to happen.....as I said, I'm not a mental health expert, just a semi-retired businessman, but let me throw this out for a start:
First, a non-partisan group of politicians should listen to rank and file mental heath professionals about their concerns and suggestions on what changes should occur, and in what steps they should be implemented. Input from the rank and file is important, because they're the ones actually dealing with the mentally ill (of all degrees) on a regular basis. The "suits" above them, as is true in many professions /cases, really have no concept of exactly what is going on.
Second, once a multi-step implementation plan is made, it should be presented to both mental health professionals and state budget personnel in every state. Let them prioritize their own states' needs and determine how much funding is needed to get their own state programs implemented and on track. Those programs could / should include dedicated mental hospitals, as well as short / medium term treatment centers; acute treatment programs; client treatment follow up personnel; maybe even developing programs that can be implemented in middle and high school grades.
Third, and this would be the deal breaker most likely, allocation of federal and state funds to implement and run these programs. Personally, I would suggest a majority of those funds come from the failed "war on drugs". I'm sure there is enough pork elsewhere in government that the money is there - the problem is the self-serving interests of politicians of all parties, and getting them to think and act for the people that elected them, instead of their own selves.
Now, is that the right answer? Hell, I don't know, but you've continually asked "how" and "why" and "where", so I'm just laying this out there. It's a start, and perhaps it's a misguided one....then again, maybe it's not.
As I posted earlier, having known closely folks with mental illness, not everything works for everyone. But, I do know that doing nothing makes things worse. And a start of anything would hopefully be better than what we have now.
If this answer isn't a suitable proposition to you, then by all means, what do YOU suggest? I'm truly interested in your, and anyone else's, ideas. Thanks.