Excepting several set-asides,[1] this share is distributed directly to Michiganâs counties, municipalities, and townships according to the allocations in Michiganâs state-subdivision agreements.[2]
With limited exceptions,[3] local governments must spend their collective 50% share on the opioid remediation uses described in the national settlement agreementâs (non-exhaustive) ,[4] which includes prevention, harm reduction, treatment, recovery, and other strategies.
Michiganâs state-local agreements reiterate the national settlement agreementsâ requirement that at least 70% of funds be spent on prospective abatement purposes but do not assign this responsibility to a specific share.[5]
Localities decide autonomously. Decisionmakers for the counties, municipalities, and townships will ultimately decide for themselves how to spend their monies on Exhibit E uses.[6] Examples of certain countiesâ plans and uses of settlements funds may be found .[7]
MDHHS provides local decisionmakers with technical support through its Technical Assistance Collaborative, a coalition of academic institutions that educate and individually assist local governments on best practices.[8]
No, supplantation is not prohibited. Michigan does not explicitly prohibit supplantation uses of opioid settlement funds from its 50% local share. This means that counties, cities, and townships may spend their monies from this share in ways that replace (or âsupplantâ) â rather than supplement â existing resources.
Up to each locality (neither public nor intrastate reporting required). Opioid settlement expenditures are not officially published in a centralized location for this share.
Visit OpioidSettlementTracker.comâs for an updated collection of statesâ and localitiesâ available expenditure reports.
In June 2024, the Michigan Association of Counties published the results of a survey that found that the âvast majorityâ of responding counties have created separate funds to hold their opioid settlement monies apart from other sources of funds and are not combining funds with other local governments.[9]
Michigan State-Subdivision Agreement for Allocation of Distributor Settlement Agreement and Janssen Settlement Agreement (âMichigan Distributor and Janssen State-Subdivision Agreementâ), Secs. (providing that âamounts will be deducted for the ⌠Administrative Fund, Litigating Local Government Attorney Fee Fund, [and] Special Circumstance Fundâ prior to distribution), (defining the âAdministrative Fundâ as â0.3% of the Local Government Shareâ), (defining the âSpecial Circumstance Fundâ as â5% of the Local Government Shareâ), (attorney costs), (attorneysâ fees), (describing Special Circumstance Fund); Michigan State-Subdivision Agreement for Allocation of Allergan, Teva, CVS, Walmart, and Walgreens Settlement Agreements (âMichigan Subsequent Settlement State-Subdivision Agreementâ), Secs. (defining âAdministrative Fundâ), (defining âLitigating Local Government Attorney Fee Fundâ), (defining âSpecial Circumstance Fundâ), (providing for deductions for Administrative Fund, Litigating Local Government Attorney Fee Fund, and Special Circumstance Fund), (litigation costs), (attorney fees), (Special Circumstance Fund). But see Michigan Distributor and Janssen State-Subdivision Agreement, Sec. (providing for reversion of set asides to the Local Government Share); Michigan Subsequent Settlement State-Subdivision Agreement, Sec. (same). â
See prior section for footnotes on the Administrative Fund, Special Circumstance Fund, and attorneysâ fees. â
Michigan Distributor and Janssen State-Subdivision Agreement, Secs. I.P (ââOpioid Remediationâ is the term as defined by the Settlementsâ), II.2 (âAll Settlement Payments shall be utilized by Participating Local Governments and the State for Opioid Remediation, except as otherwise allowed by the Settlements. A minimum of 70% of Settlement Payments must be used solely for future Opioid Remediationâ); Michigan Subsequent Settlement State-Subdivision Agreement, Secs. I.O, II.2 (same). Note that non-opioid remediation expenditures are capped under the national settlement agreements. See, e.g., the Distributor and Janssen settlements, Secs. V.B.1, V.B.2 (requiring states and subdivisions to spend a minimum 85% of funds on opioid remediation, which the settlements define to mean Exhibit E); CVS Settlement Agreement, Sec. V(B)(1) (minimum 95.5% opioid remediation spending); Walgreens Settlement Agreement, Sec. V(B)(1) (minimum 95% opioid remediation spending); Walmart Settlement Agreement, Sec. V(B)(1) (minimum 85% opioid remediation spending). See Distributor Settlement Agreement, Sec. I.SS (âExhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expensesâ). â
Michigan Distributor and Janssen State-Subdivision Agreement, Sec. II.2; Michigan Subsequent Settlement State-Subdivision Agreement, Sec. II.2. See also 2023 Annual Report: A Planning Guide for State Policy Makers. Michigan Opioid Advisory Committee. Accessed August 19, 2024 (âThe OAC and the State legislature have no direct influence over spending practices of Michiganâs subdivisionsâ and âretain authority for spending decisionsâ). â
As of June 2024, this section of the state Attorney Generalâs Opioids website hosted information about certain countiesâ plans for and uses of settlement funds, i.e., Monroe County Opioid Analytics Dashboard, Berrien County: Opioid Settlement Taskforce, Calhoun County: Use of Opioid Settlement Funds, Eaton County: Strategic Plan, Kalamazoo County: Allocation of Settlement Funds, Lenawee County: Opioid Action Plan, Monroe County: Opioid Analytics Dashboard, and Montcalm County: Public Services. But see Ron French and Robin Erb. Millions to help opioid users still unspent in half of Michiganâs counties. Bridge Michigan â Michigan Health Watch. June 14, 2024. Accessed August 20, 2024. â
MDHHS: Opioid Strategy and Implementation of Opioid Settlements (âMDHHS has contracted with Michigan State University, the University of Michigan, and Wayne State University to provide technical assistance to local governments to ensure they have resources available to make the most impactful investment decisions for opioid settlements for their communities. Together with MDHHS, the universities have formed the Technical Assistance Collaborative (TAC) to share information with local governments regarding best practices for opioid-related issues. The TAC provides individualized technical assistance to counties requesting it, as well as educational webinars and resources that are available to all local governments across Michiganâ; âAs of October 2023, 21 counties have engaged with the Technical Assistance Collaborative for technical assistance on evidence-based investments for their opioid settlementsâ). â
Michigan Opioid Settlement County Reporting: Data Overview. Michigan Association of Counties. June 2024. Accessed September 1, 2024 (âThirty (30) of the 83 counties, or 36 percent (36%), completed the surveyâ). â