36.39% Opioid Settlement Fund Share
Where do these monies live?
The Opioid Settlement Fund holds the Office of Addiction Services and Supports’ (OASAS) combined 36.39% share:[1]
20% is set aside for OASAS’ discretionary spending[2]
16.39% is set aside for regional spending across 8 regions, five large cities, and various municipalities (excluding New York City and Nassau and Suffolk counties) according to Schedule B of New York’s state-local agreement.[3] This portion of the Fund share is distributed through counties’ Local Government Units.[4]
What can this share be spent on?
In general, and with limited exceptions,[5] monies in the Opioid Settlement Fund must be spent on “eligible expenditures,”[6] which state law limits to a specific list of eight eligible services and programs that include youth-focused prevention campaigns, statewide anti-stigma campaigns, treatment and recovery programs, harm reduction services, recovery and supportive housing, community-based programs to reduce involvement with the criminal legal system, support for pregnant women and new parents (including babies with neonatal abstinence syndrome), and vocational and educational trainings for people with or at risk for a substance use disorder.[7] The Opioid Settlement Fund Advisory Board may recommend additions to or deletions from this list to the legislature and governor.[8]
The Opioid Settlement Fund Advisory Board has expressed its own priority funding categories as “Priority Areas” that include regional abatement, harm reduction, “investments across the continuum,” “priority populations,” treatment, recovery, housing, prevention, transportation, public awareness, and research.[9] In its 2023 report, the Board also reaffirmed and expanded upon its principles and overarching themes of spend, which include service integration to treat co-occurring disorders and the need to prioritize communities of color.[10]
Who ultimately decides how to spend this share (and how)?
Opioid Settlement Fund Advisory Board recommends Fund uses; state legislature, Office of Addiction Services and Supports (OASAS), and Local Government Units decide. The Opioid Settlement Fund is appropriated by the legislature for use on programs and services overseen by the Office of Addiction Services and Supports (OASAS) and other state agencies.[11]
The Opioid Settlement Fund Advisory Board, established under OASAS, provides the governor and legislature with non-binding recommendations on Fund appropriations through its annual report,[12] which OASAS is required to publish online.[13] If the state chooses not to follow a Board recommendation, it must provide a public, written explanation for its decision and provide the Board an opportunity to respond.[14] Fund expenditures must prioritize programs that are culturally, linguistically, and gender competent; trauma-informed; evidence-based; and employ people with lived experience “where appropriate.”[15]
16.39% regional spending: Board recommends, Local Government Units (LGUs) decide. This 45% slice of the Fund is distributed across “8 regions, 5 large cities, and 21 other municipalities” (excluding New York City and Nassau and Suffolk counties) through counties’ Local Government Units.[18] As a condition of receipt, each must comply with reporting requirements and annually certify that all funds were spent on approved uses.[19] The Opioid Settlement Fund Advisory Board may provide non-binding recommendations on spend,[20] and the Board refers to its identified Priority Areas as “available to inform the local subdivisions” and a list that “should be considered when utilizing settlement dollars.”[21] Counties may subgrant their regional shares to local organizations.[22]
Is this share attached to an explicit bar against supplantation?
Yes, supplantation is prohibited. New York state law explicitly prohibits supplantation uses of monies from the Opioid Settlement Fund.[23] This means that funds from New York’s 36.39% “Opioid Settlement Fund” share must be spent in ways that that supplement — rather than replace (or “supplant”) — existing resources.
Can I see how this share has been spent?
Yes (public reporting required). View OASAS’ Opioid Settlement Fund Tracker.[24] The commissioner of addiction services and supports, the commissioner of mental health, and the commissioner of health must report Opioid Settlement Fund expenditures to the governor, various legislative leaders, and the Opioid Settlement Fund Advisory Board. These reports will then be published as a "consolidated dashboard" on various offices' websites.[25]
Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.
What else should I know?
New York State Governor Kathy Hochul has faced criticism for allegedly seeking to circumvent the state’s prohibition on supplantation uses of monies from the Opioid Settlement Fund by proposing to reduce the money OASAS receives from the state’s general fund while simultaneously increasing the amount of opioid settlement funds directed to OASAS.[26]
Citations
N.Y. State Fin. Law. Sec. 99-nn(1) (creates “opioid settlement fund”), New York Opioid Settlement Sharing Agreement (Agreement) II.B(2)-(3) (allocates 16.39% and 20% “to the Lead State Agency to be placed in the Opioid Settlement Fund”). ↑
Agreement II.B(2) (“In combination, the amount of Regional Spending of the Opioid Settlement Fund committed to cities other than New York City with a 2020 population of more than 90,000 shall not be less than 1.89% of the total Opioid Settlement Funds”) and IV.A(1) (“Schedule B”). See also Opioid Settlement Fund Regional Abatements. Office of Addictions Services and Supports (OASAS). Accessed August 12, 2024. New York City, Nassau County, and Suffolk County receive settlement monies directly through other shares. Agreement II.B(6)-(8). ↑
Opioid Settlement Fund Regional Abatements. OASAS. Accessed August 12, 2024. (“The LGU is the unit of government with authority under New York State Mental Hygiene Law to provide local addiction and mental health services”). ↑
Agreement II.B(3) (allowing administrative uses for OASAS’ 20% Discretionary Spending share) and IV.A(2) (“No more than 5% of the total Opioid Settlement Fund may be used in any fiscal year for oversight and administrative costs of the Opioid Settlement Fund and the Advisory Board”). ↑
N.Y. Mental Hyg. Law Sec. 25.18(b) (“The legislature shall appropriate funds to be used for eligible expenditures that are consistent with the approved uses and terms of the statewide opioid settlement agreement. Such expenditures shall be distributed regionally and in accordance with the statewide opioid settlement agreements to ensure adequate geographic disbursement across the state”). State law defines “eligible expenditures” as “services and programs that are consistent with the approved uses and terms of the statewide opioid settlement agreement as defined in this section,” but then limits this to a list of eight (8) interventions/areas. See N.Y. Mental Hyg. Law Sec. 25.18(a)(1)(i)-(viii). See also Agreement II.B(2)-(3) and IV.A(1)-(2) (allocating Regional and Discretionary Spending amounts for “Approved Uses”). ↑
N.Y. Mental Hyg. Law Sec. 25.18(a)(1)(i)-(viii). ↑
But may only recommend deletions with approval from ¾ of present Board members. N.Y. Mental Hyg. Law Sec. 25.18(c)(2). ↑
Opioid Settlement Fund Tracker. OASAS. Accessed September 1, 2024. See also Opioid Settlement Fund Advisory Board Annual Report. November 1, 2023. Accessed August 12, 2024 (“After careful deliberation, for FY 2025, the Board has felt it is important to clarify and reprioritize their prior recommendations. The following section serves as an Addendum to the Board’s initial report, dated November 1, 2022. In this Addendum, the Board hereby reprioritizes and clarifies its funding categories as follows, beginning with the recommended highest priority.” This reprioritization took place by Board vote). ↑
Opioid Settlement Fund Advisory Board Annual Report. November 1, 2023. Accessed August 12, 2024. ↑
N.Y. State Fin. Law. Sec. 99-nn(5). These agencies include “the department of health, the office of mental health, the division of housing and community renewal or any other agency that may oversee an appropriate program or service that is considered an eligible expenditure.” See also N.Y. Mental Hyg. Law Sec. 25.18(a)(4), (b)(1)-(3). ↑
N.Y. Mental Hyg. Law Sec. 25.18(c)(1), (c)(9) and Agreement V.A. See also Agreement V.B (“The Advisory Board shall have additional advisory responsibilities, including reporting on projects and programs related to addressing the opioid epidemic, developing priorities, goals and recommendations for spending on such projects and programs, working with the Lead State Agency to develop measurable outcomes for such projects and programs, and making recommendations for policy changes”). ↑
Agreement IV.E. See, e.g., Opioid Settlement Fund Advisory Board Annual Report. November 1, 2023. Accessed August 12, 2024. In developing its recommendations, the Board must account for gaps in access to services, incorporate mechanisms to assess the effectiveness of spending, and suggest areas of opioid remediation research. N.Y. Mental Hyg. Law Sec. 25.18(c)(1). The Board also “may take into consideration federal, state or local initiatives and activities that have shown to be effective in preventing and treating substance use disorders as well as maintaining recovery and assisting with the collateral effects of substance use disorders for individuals and their families or support system.” N.Y. Mental Hyg. Law Sec. 25.18(c)(1). See also Agreement V.B. ↑
N.Y. State Fin. Law Sec. 99-nn(5). ↑
Agreement II.B(3). It can also be used for costs associated with administration of the Opioid Settlement Fund. ↑
Agreement IV.A(2) (in addition to funding Approved Use Projects, OASAS can use this slice of funds to “carry out the duties of the Lead State Agency and Advisory Board under this Agreement, including oversight and administration of the Opioid Settlement Fund and the Advisory Board”). The Board also monitors these “permitted administrative expenses.” Agreement V.B. ↑
Opioid Settlement Fund Regional Abatements. OASAS. Accessed August 12, 2024 ((“The LGU is the unit of government with authority under New York State Mental Hygiene Law to provide local addiction and mental health services”). See Agreement II.B(2) (“In combination, the amount of Regional Spending of the Opioid Settlement Fund committed to cities other than New York City with a 2020 population of more than 90,000 shall not be less than 1.89% of the total Opioid Settlement Funds”), IV.A(1) (“Schedule B”), and Agreement, Schedule B. See also Opioid Settlement Fund Regional Abatement County, Five Large Cities, and Other Litigating Entities Planned Use of Funds Request. OASAS. February 6, 2024. Accessed August 12, 2024. ↑
N.Y. Mental Hyg. Law Sec. 25.18(b)(2)-(3) and Agreement IV.A(1). ↑
Agreement V.B. See also Opioid Settlement Fund Regional Abatements. OASAS. Accessed August 12, 2024. (“OASAS holds regular calls with Local Government Units (LGUs) to address questions related to regional abatements”) and Opioid Settlement Funding Initiatives. OASAS. Accessed August 12, 2024. (“As specified in the Settlement Agreement, State Statute and in the 2023 Opioid Settlement Fund Advisory Board report, the allowable use of funds and identified priority areas are available to inform the local subdivisions and should be considered when utilizing settlement dollars”). ↑
Opioid Settlement Fund Tracker. OASAS. Accessed September 1, 2024. ↑
See, e.g., Westchester County Distributes Millions in Opioid Settlement Funds for Treatment, Prevention, Harm Reduction, and Recovery. Office of the Westchester County Executive. May 30, 2024. Accessed August 12, 2024. ↑
N.Y. State Fin. Law Sec. 99-nn(3) (“Moneys of the fund shall be used to supplement and not supplant or replace any other funds, including federal or state funding, which would otherwise have been expended for substance use disorder prevention, treatment, recovery or harm reduction services or programs”). See also N.Y. Mental Hyg. Law Sec. 25.18(c)(10)(F) (requiring annual reporting to include “any other information the commissioner deems necessary to help inform future appropriations and funding decisions, and ensure such funding is not being used to supplant local, state, or federal funding”) (emphasis added). ↑
This site is unrelated to OpioidSettlementTracker.com. ↑
N.Y. Mental Hyg. Law Sec. 25.18(c)(10). ↑
See, e.g., Spencer Norris. As Overdoses Soar, Addiction Treatment Funding Stagnates. New York Focus. February 13, 2024. Accessed June 24, 2024. ↑
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