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HomeMy WebLinkAboutAgenda 01-20-2026; 8-i - Revised Opioid Settlement Fund Spending Authorization Resolution and Approval of Budget Amendment #6-A 1 ORD-2026-003 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 20, 2026 Action Agenda Item No. 8-i SUBJECT: Revised Opioid Settlement Fund Spending Authorization Resolution and Approval of Budget Amendment #6-A DEPARTMENT: Board of County Commissioners ATTACHMENT(S): INFORMATION CONTACT: Quintana Stewart, Orange County MOA Spending Authorization Resolution Health Director, 919-245-2412 PURPOSE: To approve a resolution for the final opioid settlement fund spending authorization for FY 2026, and approve Budget Amendment #6-A. BACKGROUND: In July 2021, a bipartisan coalition of state attorneys general announced the National Opioid Settlement — a historic agreement that will help bring desperately needed help to communities harmed by the opioid epidemic. The State of North Carolina and all 100 counties, including Orange County, joined the agreement. North Carolina is receiving $1,420,932,713 in opioid settlement funds from 2022 through 2038. Orange County is expected to receive $12,748,445 million over an 18-year period. In September 2022, the BOCC approved the appointment of the Orange County Opioid Advisory Committee with the following charge: • Discuss opioid-related health concerns and issues impacting the residents of Orange County. • Advise the Board of Commissioners on options to expend funds to prevent opioid abuse and remedy opioid impacts. • Plan and host an annual meeting open to the public to receive input on proposed uses of the settlement funds and to encourage collaboration between local governments. The Board also approved Option A for the use of the settlement funds per the NC Memorandum of Agreement Opioid Settlement. County-hosted programs approved for Opioid Settlement Funding for Fiscal Year 2026 (July 1, 2025 — June 30, 2026) include the following: • Lantern Project: $201,747 • NC FIT Program: $74,724 • County Vending Machines: $25,000 • PORT Team: $338,350 • Harm Reduction Coordinator: $110,861 • CJRD Clinical Coordinator: $108,191 2 At the beginning of the fiscal year, the Opioid Settlement team, in consultation with Budget and Finance staff, reviewed the amount of available funds in each approved project along with the status of each projects spending authorization. Upon review, it was determined that multiple projects needed spending authorization dates extended to account for past spending and allow for the use of unspent funds from prior years. The attached spending authorization resolution extends the authorization date for each project until the end of FY 2025-2026, allowing each project to use all previously allocated funding until the end of the fiscal year. Additionally, it was determined that the Lantern Project and Harm Reduction Coordinator project needed additional funds to cover personnel costs in FY 2025-2026. The amendment below allocates unspent funds from the NC FIT project to account for those additional costs. It also reallocates the difference in costs for the revised Freedom House contract that was approved by the Board at the October 21, 2025 Business meeting, with the remainder falling to the unallocated project. The formal required resolution providing final opioid settlement fund spending authorization for FY 2026 is attached for Board approval. Budget Amendment #6-A amends the grant project ordinance as follows: Opioid Settlement Fund($0) - Fund#27 Revenues for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Opioid Settlement Funds $4,654,294 $0 $4,654,294 Total Project Funding $4,654,294 $0 $4,654,294 Appropriated for this project: Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Lantern Project $539,714 $24,345 $564,059 Freedom House $322,485 ($5,577) $316,908 NC FIT $218,224 ($49,629) $168,595 County Vending Machines $93,000 $0 $93,000 SHAC Syringe Exchange Program $101,800 $0 $101,800 Reintegration Support Network $40,000 $0 $40,000 Post-Overdose Response Team $582,370 $0 $582,370 Grow Your World $20,000 $0 $20,000 Harm Reduction Coordinator $218,886 $11,918 $230,804 CJRD Clinical Coordinator $108,191 $0 $108,191 Piedmont Health $50,400 $0 $50,400 EI Futuro $50,000 $0 $50,000 Transition Support and Recovery $20,000 $0 $20,000 Unallocated $2,289,224 $18,943 $2,308,167 Total Costs $4,654,294 $0 $4,654,294 3 FINANCIAL IMPACT: Distribution of opioid settlement funds may support programs and services that serve persons with Opioid Use Disorder or any co-occurring Substance Use Disorder (SUD) or mental health condition in Orange County. Budget Amendment #6-A reallocates funds within the awards to amend these project budgets. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 1. Improve harm reduction, prevention, and support services for adults and children experiencing behavioral health issues, substance use disorder, and intellectual or developmental disability. RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the Chair to sign the spending authorization resolution, and approve Budget Amendment #6-A. RES-2026-005 4 A RESOLUTION BY THE COUNTY OF ORANGE,NORTH CAROLINA TO DIRECT THE EXPENDITURE OF OPIOID SETTLEMENT FUNDS WHEREAS Orange County, North Carolina has joined national settlement agreements with companies engaged in the manufacturing,distribution, and dispensing of opioids, including settlements with drug distributors Cardinal, McKesson, and AmerisourceBergen,and the drug maker Johnson& Johnson and its subsidiary Janssen Pharmaceuticals; WHEREAS the allocation, use,and reporting of funds stemming from these national settlement agreements and certain bankruptcy resolutions ("Opioid Settlement Funds") are governed by the Memorandum of Agreement Between the State of North Carolina and Local Governments on Proceeds Relating to the Settlement of Opioid Litigation("MOA"); WHEREAS Orange County has received Opioid Settlement Funds pursuant to these national settlement agreements and deposited the Opioid Settlement Funds in a separate special revenue fund as required by section D of the MOA; WHEREAS section E.6 of the MOA states: E.6. Process for drawingfrom om special revenue funds. a. Budget item or resolution required. Opioid Settlement Funds can be used for a purpose when the Governing Body includes in its budget or passes a separate resolution authorizing the expenditure of a stated amount of Opioid Settlement Funds for that purpose or those purposes during a specified period of time. b. Budget item or resolution details. The budget or resolution should(i)indicate that it is an authorization for expenditure of opioid settlement funds; (ii)state the specific strategy or strategies the county or municipality intends to fund pursuant to Option A or Option B, using the item letter and/or number in Exhibit A or Exhibit B to identify each funded strategy, and(iii) state the amount dedicated to each strategy for a stated period of time. NOW,THEREFORE BE IT RESOLVED, in alignment with the NC MOA, Orange County, authorizes the expenditure of opioid settlement funds as follows: 1. First strategy authorized a. Name of strategy: Recovery Su12ort Services b. Strategy is included in Exhibit A (Exhibit A.Exhibit B) c. Item letter and/or number in Exhibit A or Exhibit B to the MOA: Strategy d. Amounted authorized for this strategy: $24.346 e. Period of time during which expenditure may take place: Start date July 1. 2023 through End date June 30. 2026 f. Description of the program, project, or activity: The Lantern Project is a collaboration between the Criminal Justice Resource Department and subcontractor Freedom House Recovery Center. The mission is to support justice- impacted individuals with substance use disorder through evidence- based strategies, interventions and programming designed to reduce their vulnerability to overdose, death, and recidivism. The mission is to light the path to recovery through harm reduction, diversion, reentry support and treatment. 5 g. Provider: Criminal Justice Resource Department 2. Second strategy authorized a. Name of strategy: Naloxone Distribution b. Strategy is included in Exhibit A (Exhibit A.Exhibit B) c. Item letter and/or number in Exhibit A or Exhibit B to the MOA: Strategy 7 d. Amounted authorized for this strategy: $54.198 e. Period of time during which expenditure may take place: Start date July 1. 2024 through End date June 30, 2026 f. Description of the program,project, or activity: Funds will be used to purchase Naloxone for Community Vending Machines in the County. g. Provider: Criminal Justice Resource Department 3. Third authorized strategy a. Name of strategy: Syringe Service Program (SSP) b. Strategy is included in Exhibit A (Exhibit A.Exhibit B) c. Item letter and/or number in Exhibit A or Exhibit B to the MOA: Strategy d. Amounted authorized for this strategy: $54.628 e. Period of time during which expenditure may take place: Start date July 1. 2024 through End date June 30, 2026 f. Description of the program,project, or activity: UNC Student Health Action Coalition (SHAC) is a harm reduction-based organization providing sterile injection supplies, fentanyl and xylazine test strips; also provides referrals to other social and health services for people who use drugs in Orange County. Seeking funds for Syringe Service Program (SSP) supplies, educational materials, marketing, travel, and continued funding for paid Program Navigator position. Desire to open a new SHAC SSP location to increase SSP access; current distribution occurs at Interfaith Council for Social Service and University Methodist Church; Hillsborough Pharmacy assists with storage needs. g. Provider: UNC SHAC 4. Fourth authorized strategy a. Name of strategy: Early Intervention b. Strategy is included in Exhibit A (Exhibit A.Exhibit B) c. Item letter and/or number in Exhibit A or Exhibit B to the MOA: Strategy 6 d. Amounted authorized for this strategy: $20.000 6 e. Period of time during which expenditure may take place: Start date July 1. 2024 through End date June 30,2026 f. Description of the program,project, or activity: Seeking support for additional mentor trainers to work with youth and emerging adults (ages 13- 20)navigating substance use,mental health challenges, and/or justice involvement. Mentors serve as allies and peer support workers, and often have personal experience with substance use, mental health challenges, and/or justice involvement. Mentors receive comprehensive training to recognize and nurture youth strengths, utilizing Substance Abuse and Mental Health Services Administration(SAMHSA) Core Competencies (recovery-oriented,person-centered,voluntary,relationship focused, and trauma-informed practices), active listening skills, SMART goal setting, and motivational interviewing techniques. Recognizing the profound impact of poverty and social identities on the youth we serve, Reintegration Support Network(RSN) is committed to addressing the root causes of inequity through culturally responsive and person-centered services. g. Provider: Reintegration SuMport Network(RSN) 5. Fifth authorized strategy a. Name of strategy: Post-Overdose Response Team(PORT) b. Strategy is included in Exhibit A (Exhibit A.Exhibit B) c. Item letter and/or number in Exhibit A or Exhibit B to the MOA: Strategy d. Amounted authorized for this strategy: $6,621 e. Period of time during which expenditure may take place: Start date July 1. 2024 through End date June 30. 2026 f. Description of the program,project, or activity: Development and implementation of a PORT within the geographic constraints of Orange County,NC; funds will support staff salary, supplies and needed software. PORTs are specialized teams that respond to opioid overdoses in real time or within 24-72 hours of the overdose event.Upon implementation,the OC-EMS PORT will meet individuals where they are at in their addiction by providing harm reduction resources, linkage to treatment services, and medication-assisted treatment (MAT) induction and administration. This service will be available to all eligible individuals that OC-EMS interfaces with during EMS incidents and will be provided as a referral for collaborating departments, emergency departments, organizations and the community at-large. PORTS have become the standard of care in post-overdose services nationally and locally, with 41 North Carolina counties currently having an active PORT in place. g. Provider: Orange County Emergency Services 7 6. Sixth authorized strategy a. Name of strategy: Collaborative Strategic Planning b. Strategy is included in Exhibit A (Exhibit A.Exhibit B) c. Item letter and/or number in Exhibit A or Exhibit B to the MOA: Strategy d. Amounted authorized for this strategy: $11.919 e. Period of time during which expenditure may take place: Start date July 1. 2024 through End date June 30, 2026 £ Description of the program,project, or activity: The Orange County Opioid Program Manager(Harm Reduction Coordinator)will be responsible for overseeing the development, administration,budget, grant management, and reporting for Orange County's Opioid Settlement Program. This position will work with closely with Orange County staff and community partners involved in community overdose prevention, education, harm reduction, treatment opportunities and recovery support. They will ensure all reporting requirements are met for the Opioid Settlement Fund and pursue additional resources to advance this work. g. Provider: Orange County Health Department 7. Seventh Authorized Strategy a. Name of strategy: Evidence-based Addiction Treatment b. Strategy is included in Exhibit A (Exhibit A.Exhibit B) c. Item letter and/or number in Exhibit A or Exhibit B to the MOA: Strategy d. Amounted authorized for this strategy: $48.598 e. Period of time during which expenditure may take place: Start date July 1. 2025 through End date June 30, 2026 f. Description of the program,project, or activity: Freedom House connects with individuals screened in the Orange County Detention Center who have a history of Opioid Use Disorder. The licensed clinician will conduct a Comprehensive Clinical Assessment to ascertain the best treatment options for the individual prior to or upon release from incarceration. Freedom House will utilize a Peer Support Specialist post incarceration to assist individuals with connecting to the recommended treatment. The Peer will work with the individual as long as needed to connect them with treatment, community resources, court appearances and to support the individual in recovery to curb recidivism. The clinician will reevaluate as needed when and if life circumstances change prior to engaging in treatment. g. Provider: Freedom House The total dollar amount of Opioid Settlement Funds appropriated across the above named and authorized strategies is $220,310.00. 8 Adopted this the 201h day of January 2026. Jean Hamilton, Chair Orange County Board of Commissioners ATTEST: Laura Jensen, Clerk to the Board COUNTY SEAL