State Comprehensive Mental Health Services Plan Act of 1986

State Comprehensive Mental Health Services Plan Act of 1986 - Amends title XIX (Block Grants) of the Public Health Service Act to authorize the Secretary of Health and Human Services to make grants to States for the development of State comprehensive mental health services plans. Authorizes appropriations for FY 1987.

Sets forth the requirements for such plans, which include: (1) establishing objectives for providing mental health prevention and treatment services; (2) describing the resources devoted to, and the activities to be carried out under, such plan; (3) providing case management services for each chronically mentally ill individual; (4) establishing and implementing a program of outreach to, and services for, chronically mentally ill individuals who are homeless; and (5) providing, to the maximum extent feasible, for the delivery of services through community mental health centers.

Requires each State to transmit a report to the Secretary describing the progress made by such State in implementing its comprehensive plan.

Requires each State to establish an Advisory Council on Mental Health Planning.

Directs the Secretary to: (1) establish national goals and objectives for a community-based system of mental health care; and (2) conduct a review, at least every three years, of each State's program to determine whether it is in accordance with the national goals and objectives.

Authorizes appropriations for Alcohol and Drug Abuse and Mental Health Services Block Grants through FY 1988.

Authorizes the Secretary to make grants for demonstration projects to provide services for homeless mentally ill individuals. Authorizes appropriations for FY 1987 through 1989.