Title
Health and Human Services Agency (HHSA) recommending the Board ratify the Chief Administrative Officer’s and Auditor-Controller’s signatures on a budget transfer request (BTR) for fiscal year (FY) 2025-26 to support completion of year-end journal entries and finalize the FY end budget process, moving $1,045,791 of Opioid Settlement Abatement Funds from the current Opioid Settlement Fund (OSF) and increasing the newly established Opioid Settlement Abatement account fund balance by the same amount. The increase in the Abatement program fund balance will be offset by transferring $941,014 from OSF’s Support and Care Persons expenses and $104,777 from OSF’s Health Services expenses for the same purpose under the Abatement account.
FUNDING: 100% Opioid Settlement Funds.
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DISCUSSION / BACKGROUND
The opioid overdose epidemic remains a significant public health crisis nationwide, prompting coordinated legal action by state and local jurisdictions. As previously reported to the Board, the County joined multiple national class-action lawsuits against opioid manufacturers, distributors, and related entities whose actions were determined to have contributed to widespread addiction and overdose deaths. Settlement agreements from these lawsuits continue to provide dedicated funding to counties across California for the abatement of opioid-related harms, with expenditures restricted to allowable uses as defined by the California Department of Health Care Services (DHCS) and State Subdivision Agreements.
In alignment with these requirements, the County has established a Strategic Framework to guide the responsible and transparent use of opioid settlement funds. These funds are directed toward high-impact abatement activities and other Board-approved initiatives that support treatment, prevention, education, youth services, residential treatment infrastructure, medication-assisted treatment, and related community-based interventions.
To support ongoing transparency in fiscal management and ensure clear accounting of expenditures associated with these settlement dollars, HHSA in collaboration with the Auditor-Controller's Office and Chief Administrative Office (CAO) identified a need to separate certain appropriations into a newly established account dedicated specifically to opioid settlement activities. This change improves financial clarity by isolating settlement related appropriations and simplifying tracking of revenues and expenditures tied to restricted opioid settlement funds.
A budget transfer was therefore processed to move a portion of the existing appropriations from the current account into the newly created account. This action was strictly administrative in nature and did not modify, expand, or alter any previously approved spending authority or programmatic direction provided by the Board. All Board approved allocations, allowable use restrictions, and strategic priorities remain fully in force.
Due to the timing of FY end close processes, the transfer required immediate completion to avoid delays within County financial systems. This clerical update was performed with support and approval from the Auditor-Controller's Office and the CAO and this item ratifies the processing of the budget transfer. The transfer ensures that opioid settlement funds continue to be managed in full compliance with State requirements and County accounting standards, while enhancing transparency for all future settlement-funded activities.
ALTERNATIVES
N/A
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Auditor-Controller's Office, Chief Administrative Office
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There are no General Fund dollars associated with this item.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain signature of Chair on the attached Budget Transfer Request; and
2) Submit the BTR to the CAO office for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency