State officials said some local governments have opted to wait until funds build up more.
(FILE PHOTO: WFIU/WTIU News)
A new state report shows most local governments in Indiana have not started spending their portion of opioid settlement dollars. The total settlement fund is split evenly between the state and local governments.
Indiana anticipates receiving an estimated $925 million from national settlements over an 18-year period. In 2022, Gov. Eric Holcomb signed House Enrolled Act 1193 into law, which created the even split and defined the "intensity metrics” that determine how much money each locality receives.
Nearly one-third of the total funds are restricted, meaning state and local governments have to use them for purposes like treatment and prevention. The rest is “unrestricted” which means the state and local governments can spend that money however they want.
The 2024 progress report includes 644 local governments – four localities failed to meet the reporting deadline. Of those included in the report, 80 percent haven’t spent any restricted funds and 82 percent haven’t spent their unrestricted funds.
State officials said some local governments have opted to wait until funds build up more. They also said when it comes to actually spending the money, the size of a community or the amount of money they received didn’t matter.
The localities that were more likely to spend their settlement money were ones that created a committee to oversee that spending. However, only 16 percent of local governments did so.
Officials offered recommendations for how to spend that money, highlighting the importance of evidence-based practices.
The state has started spending its portion, with the Family and Social Services Administration tasked with overseeing the funding.
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About $19 million went toward a match grant opportunity, which provided one-time funding to support “evidence-based prevention, treatment, recovery and harm reduction services, expand the behavioral health workforce and implement other services” across the state. The grant funds programs that reach people in 28 counties.
Another $10 million was dedicated to a program to expand housing for people with substance use disorders. The goal of the program is for a non-profit developer to partner with a certified treatment provider or certified recovery community organization. The provider or organization will assist residents with supportive services, “including but not limited to case management, mental health counseling, substance use services, life skills, and coaching.”
The state invested about $5 million in one-time funding to support capital expenditures for recovery residences. Indiana is using another $5.8 million to fund the expansion of peer support services.
In August, the State Budget Committee approved FSSA’s plan for the next round of spending. The plan includes $46 million to be spent through 2026.
This plan includes $10 million toward another match grant opportunity for local governments. That grant will be available to “bolster evidence-based prevention strategies, expand and develop recovery housing, and improve transportation services.”
The plan also looks to expand services for adolescents and pregnant people, while increasing access to medication-assisted treatment. The state plans to “target” advocacy to faith and marginalized communities. It will also provide prevention programming for “at-risk populations” and youth, and introduce initiatives to address workforce shortages in the behavioral health sector.
Abigail is our health reporter. Contact them at aruhman@wboi.org.
