This is just sad. Didn't something similar happen with Ronald Reagan in the 1980s? http://www.nytimes.com/1984/10/30/science/how-release-of-men... http://www.motherjones.com/politics/2013/04/timeline-mental-...
Just like every other political issue, mental health, is complicated and there isn't one reason or person for the way things are.
Blaming Reagan ignores the dact that new antipsychotics were developed that allowed patients that were previous confinded to institutions to be released to the community.
Also, the ACLU along with the supreme court changed the laws and made it much tougher to confine people for mental health issues. One of the biggest challenges in treating mental health is compliance. Having a mental illness often takes away the ability to see what's best for yourself. Ask a mental patient if they want to go to the hospital, they'll often say no. And based on current laws, there isn't anything we can do about it.