Declares that it is the goal of the legislature that, by 2012, the children's mental health system in Washington state include the following elements: (1) A continuum of services from early identification, intervention, and prevention through crisis intervention, including peer support and parent mentoring services;

(2) Equity in access to services for similarly situated children, including children with co-occurring disorders;

(3) Developmentally appropriate, high quality, and culturally responsive services available statewide;

(4) Treatment of each child in the context of his or her family and other persons that are a source of support and stability in his or her life;

(5) A sufficient supply of qualified and culturally diverse children's mental health providers;

(6) Use of developmentally appropriate evidence-based and promising practices; and

(7) Integrated and flexible services to meet the needs of children who, due to mental illness or emotional or behavioral disturbance, are at risk of out-of-home placement or involved with multiple child-serving systems.

Repeals RCW 71.36.020, 71.36.030, and 71.36.040.

Appropriates one million seven hundred thousand dollars from the general fund--state for fiscal year 2008 and one million three hundred thousand dollars from the general fund--state for fiscal year 2009 for the department of social and health services.

Appropriates twelve million dollars from the general fund--state for fiscal year 2008 and twelve million dollars from the general fund--state for fiscal year 2009 for the department of social and health services solely for mental health services for low-income children who do not meet regional support network access to care standards, regardless of their medical assistance eligibility status.

Appropriates seven hundred thousand dollars from the general fund--state for fiscal year 2008 and seven hundred thousand dollars from the general fund--state for fiscal year 2009 for the University of Washington.

Appropriates five hundred thousand dollars from the general fund--state for fiscal year 2008 and five hundred thousand dollars from the general fund--state for fiscal year 2009 for the economic services program.