TITLE:title
Opioid Settlement Funding Plan Update
body
INFORMATION CONTACT:
Michelle Lancaster, Consultant
ACTION REQUESTED:
1) Receive information on the County’s Opioid Settlement Plan,
2) Update the Pay and Classification plan to include a new job classification as follows:
• Opioid Settlement Program Coordinator / Strategy Analyst - Pay Grade M
3) Authorize the addition of one FTE (full-time equivalency) in the County Manager’s Office for the following job classification:
• 1 Opioid Settlement Program Coordinator / Strategy Analyst
4) Adopt Budget Amendment #18
PRIOR BOARD ACTIONS:
1) June 19, 2023, Regular Meeting, #23-367 - Adopt the Resolution to Direct the Expenditure of Opioid Settlement Funds and authorize the County Manager to negotiate and execute agreements consistent with the agenda item.
2) July 17, 2023, Regular Meeting, #23-461 - Ratify and Re-Adopt Resolution
3) October 2, 2023, Regular Meeting, #23-692 - Re-Adopt Resolution
BACKGROUND:
North Carolina participated in the national opioid settlement. The NCACC and NCDOJ formed a partnership to ensure that proceeds are provided to local jurisdictions to provide programs and services that directly impact those who have been most impacted by opioids. Union County entered into two Memorandums of Agreement (MOAs) with the state that outline the amount to be received and how the proceeds can be used. The agreements govern how NC would use the proceeds of any future national settlement or bankruptcy resolution with drug distributors and opioid manufacturers. The Opioid litigation settlement funds will be received over an 18-year period.
A settlement has been reached in a class action lawsuit against McKinsey & Company, Inc., and related entities. Allocations to eligible subdivisions, including Union County, were made following the same methodologies as applied in the national opioid settlement with Janssen Pharmaceuticals, a Wave One opioid settlement. For prior Wave One and Wave Two opioid settlements, decisions on how settlement funds will be allocated within a state are subject to the North Carolina Memorandum of Agreement (MOA), including supplemental agreements to the MOA, on the allocation, use, and reporting of funds. However, funds from the McKinsey settlement are not subject to the MOA or any supplemental agreements to the MOA since NC Department of Justice was not involved in this litigation. Thus, these funds are not appropriated within the County’s Special Revenue Fund for Opioid Settlement. As a recipient of this allocation, Union County is required to use the settlement funds exclusively for approved uses designed to abate the opioid epidemic.
Staff is providing an update on the detailed plan for the use of opioid settlement funds approved by the Board of Commissioners at its June 19, 2023, Regular Meeting. Part of the update will include a recommendation to appropriate $5,000 of McKinsey Settlement Funds for audit testing that was required as part of the County’s Single Audit for FY2024.
FINANCIAL IMPACT:
Union County will receive an allocation of $86,677.12 in FY25, which will be used to fund the new FTE and additional audit testing that was required for opioid funds ($5,000).