Sometime during the 80s and 90s several changes happened in the mental illness front. 1st and foremost, breakthrough drugs made the treatment of severe mental illness more effective. Sanitoriums and mass incarceration of mentally ill patients became less needed. The drugs were effective at tamping down psychosis and allowing patients to function normally in society. Nothing is 100% but for most of these illnesses they can be managed.
The problem, as I understand it, is that the patients, feeling better, and not wanting to deal with some side effects from the drugs, think they are cured and stop taking their medicine. After a few months, the psychosis comes back and they spiral. This is just part of mental illness. After a while, many come to understand that they can't function without the meds and lead fairly normal lives, some unfortunately don't.
In the 80s or 90s, realizing that the volume of state institutions required in the past were not needed due to the improvements in treatment, the politicians in charge saw an opportunity to cut expenses and divert funds to pet projects. But rather than just down sizing these institutions to fit the needs, they pretty much shut them down. Closing most if not all, downsizing the rest, creating a shortage of beds for people in crisis. As these facilities were shut down, thousands of patients, who had been institutionalized were sent away to fend for themselves.
Also in the 80s and 90s some patient's rights advocates decided that if people wanted to walk around crazy as a loon, no one had the right to stop them. It was made much tougher to force someone into the hospital and much tougher to force them to take drugs. This young lad had 5 encounters with police due to his illness apparently. I'm willing to bet the family ran into some difficulty with the law (not police, but courts) trying to get him treatment.
It's a very difficult problem.
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