Local governments not yet tapping into opioid settlement funds - Indianapolis News | Weather Indiana

(INDIANA CAPITAL CHRONICLE) – Most local governments have not yet started spending their opioid relief dollars, according to a state report released Thursday.

Four cities did not meet deadlines for reporting expenditures, leaving 644 places in the analysis. Of those, 80% have not spent any of their restricted money, while 82% have not used their unlimited accounts.

“As these record amounts of funding continue to flow into Indiana, the role of local people is critical,” said Shelby Thomas, deputy director for drug prevention, treatment and enforcement under Governor Eric Holcomb.

“With that in mind, we have developed guidelines for communities to consider when submitting their restricted funds,” Thomas continued. “Also included in this document is a list of tangible items not included as an allowable expense, as well as resources for those communities.”

The Family and Social Services Administration, the agency charged with tracking such spending, presented the findings to the Indiana Commission to Combat Substance Use Disorder.

In 18 years, the state as a whole is on track to receive more than $980 million as part of a national settlement with opioid distributors, manufacturers and marketers – with funds earmarked to combat substance and opioid use disorders.

The total funds will be split 50-50 between state and local government units. In total, 30% of the money – or 15% for each level of government – will go to ‘unrestricted’ funds; the state and locals can spend it as they see fit.

The state, on the other hand, moves faster.

As of Oct. 1, FSSA reported it had committed to spending more than $40 million in “restricted” funds. Such expenditures are focused on programs such as building recovery housing, outreach or hiring peer support specialists.

“An overwhelming majority of the funds, nearly $35.5 million, have gone toward treatment and recovery,” Thomas said.

In August, the State Budget Committee approved the next round of spending of $46 million.

What are these funds for?

Earlier this year, the Centers for Disease Control and Prevention had good news: overdose deaths across the country had fallen by 3% – the first decline since 2018.

In Indiana the decline was even greater, decreasing by 18%. Still, more than 2,000 Hoosiers died from overdoses in 2023 and thousands more struggle with addiction.

In December 2022, funds from the National Opioid Settlement began flowing to Indiana communities. Unlike the 1998 Tobacco Master Settlement, the funds will go to places to target areas with high rates of overdose deaths and the proliferation of opioids.

But the smallest towns received paltry amounts, too little to buy even a box of Narcan, prompting the state to pivot.

Last summer, the state made a change to the funding formula for communities that receive minimal amounts. Before July 1, anything less than $1,000 would be funneled into county coffers instead. Amounts less than $5,000 after June 30, 2023 would also go to the counties instead.

Smaller government units may still choose to pool their money with the county, Thomas said.

“We’ve had some communities reach out that even though they receive a little over $5,000, it’s still not a large amount of money,” Thomas said.

Both Thomas and Douglas Huntsinger, executive director of the state Office of Drug Prevention, Treatment and Enforcement, said the size of the community or the amount of the settlement did not matter when it came to spending. They said the best indication that communities will spend their settlement money is if they choose to establish a government body to oversee spending.

According to the report, only 103 places, or 16%, reported setting up a local committee.

“That collaboration is what drives communities,” Huntsinger said.

Online databases with Next Level Recovery include a handful of communities with fewer than 2,000 residents that are starting to spend money.

Thomas added that some places might choose to let their money build up over several payments before choosing to spend their dollars.

“That’s not necessarily a bad thing,” Thomas said. “However, we know there are many communities who still don’t know where to start and that’s why we want to provide that guidance to them.”

A draft advisory for local government units shared with the Indiana Capital Chronicle begins by directing localities to create an advisory committee, followed by an assessment of local needs. Data for such assessments can be found on government agency dashboards such as Recovery at a higher levelthe Indiana Department of Health or the Indiana management Performance Hub.

Next Level Recovery has its a list of acceptable uses for limited funds, but Johns Hopkins University also has its own funds guiding principles for communities to think about. Both emphasize reliance on evidence-based practices. The state notes that smaller amounts could be used to focus on school programs or bring health care providers into the community.

The largest single expenditure for the state was the associated grant program, with more than $18.8 million spent to date. Another $4.2 million is earmarked for the construction of recovery housing, followed by $1.5 million for street response teams.

Expanding the number of certified peer support professionals will cost the state an additional $4.8 million, but the contract will take two years to complete.

Millions over several years will go to other government agencies, such as the Office of Judicial Administration and the Indiana Department of Correction. Smaller entities — such as Hope Academy Recovery School, which educates youth with substance use disorders — have their own line items.