DEPARTMENT: Public Health
FILE TYPE: Regular Information
TITLE
title
Update On Costs Related To Opioid Crisis
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PURPOSE/ACTION REQUESTED
Receive updates on the costs incurred by the Opioid Crisis and provide guidance on next steps.
SUMMARY
Under Minn. Stat. § 145A, the Dakota County Board of Commissioners acts as the community health board and has responsibility to prevent disease and disability and to promote and protect the health and safety of county citizens.
Public Health provided a second update on the County’s response to its inclusion in the Minnesota Opioids State-Subdivision Memorandum of Agreement (MOA) on November 29, 2022 and provided an initial update on August 16, 2022. At the November Community Services Committee of the Whole meeting staff were asked to address the following:
1. County impact of opioid programs and services
2. Funding timeline
3. Estimated City Funding
Since November, staff has collaborated with the Office of Planning and Analysis (OPA) to determine the county impact of opioid programs and services. The program and financial summary provides an overview of current county programs as well as an estimated levy cost from varying years. (Attachment: Program and Financial Summary).
The Minnesota Attorney General’s Office estimated that Dakota County will receive $9,814,545 from settlements with Johnson & Johnson and three Distributors but given the need for backstop fees to be removed, staff believes the County will receive roughly $9,127,527. As more settlements are finalized, Dakota County will receive additional funding, but to date, no information about funding amounts from these additional settlements has been communicated. Per the MOA a seven percent (7%) reduction in the total amount was anticipated to be allocated to a Backstop Fund for payment of the attorney fees and costs owed by Litigating Local Governments to private attorneys. Per the 2023 budget approval process, a 1.0 full-time equivalent Opioid Coordinator will be funded by opioid settlement dollars.
In late 2022, staff received notice from the Directing Administrator of the National Opioid Settlements that the County has been allocated $1,919,533 for payment years 2021 and 2022. The County will not receive another payment from the Johnson & Johnson Settlement until 2026. An estimated funding timeline is found in Attachment: Funding Timeline.
Staff met on December 22, 2022, with several Police Chiefs. The Chiefs from Mendota Heights, West St. Paul, South Saint Paul, Rosemount, Farmington and Hastings have requested that their Drug Task Force fees of $15,392 per year be covered by the county for the next three years to offset the cost inequities they are facing as cities receiving settlement funds plan to use their funds to cover these costs. Staff will be meeting with City Managers in late January to learn what else might be needed from a city perspective to address the opioid crisis. Staff worked with the Minnesota Attorney General’s Office to estimate an equitable funding recommendation for the non-funded cities who were initially included in the settlement prior to the establishment of the 30,000-population threshold. Using the initial allocation percentages for the cities of Mendota Heights, Rosemount, South St. Paul, West St. Paul, Farmington, and Hastings, their allocation would have roughly totaled $2,141,390. However, since cities under 30,000 were not part of the settlement their allocated funds were re-distributed back to counties and cities with a population over 30,000. As a result, Dakota County’s allocation increased by $750,671 from $8,376,856 to $9,127,527. Should cities receive funds from the County, they would need to adhere to the same reporting requirements as the County and funds would need to address a program or service found in Appendix A-Eligible Use of Funds, in the MOA.
The MOA states that local governments can form partnerships at the local level and can dedicate a portion of the settlement funds to support city or community-based work with local stakeholders and partners within the Eligible Uses. The MOA also states that public health will convene multi-sector meetings to identify, collaborate and respond to local issues. Counties must collaborate and coordinate with trusted partners, including community stakeholders to collect and share information about successful strategies. Per the MOA, the County must host “an annual meeting with all municipalities in the county in order to receive input as to proposed uses of the opioid Settlement Funds.” Given that the MOA was signed on February 25, 2022, staff recommends this meeting take place prior to the anniversary of the MOA signing.
RECOMMENDATION
recommendation
Information only; no action requested.
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EXPLANATION OF FISCAL/FTE IMPACTS
Revenue generated from phase one of this allocation is estimated to be $9,127,527 over 18 years.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
Information only; no action requested.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Program and Financial Summary
Attachment: Funding Timeline
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☒ N/A
CONTACTS
Department Head: Gina Adasiewicz
Author: Madeline Goebel