Substance abuse budget reviewed; department seeks fund swaps to meet federal grant rules and discusses 988 contractor arrangements

The Joint Finance-Appropriations Committee reviewed the Department of Health and Welfare’s substance abuse treatment and prevention budget, discussed how federal grant rules affect state staffing and spending classifications, and raised questions about the contractor operating the 988 crisis line.

Analyst Alex Williamson explained that the substance abuse program administers treatment and prevention services for children and adults, is allocated 16 FTP, and recorded expenditures of roughly $22.7 million in fiscal year 2024. Williamson said 76.4% of the FY2024 spending went to trustee and benefit payments (primarily subgrants to local entities) and the remainder to personnel and operating costs.

Key funding items: Williamson traced a recent funding history: an $8.3 million one-time COVID relief appropriation in FY2022; an $8.0 million state opioid response grant in FY2023 that was made ongoing in FY2024; and FY2025 actions that included a $1.6 million ongoing enhancement (with about $1.35 million for community-based recovery centers) and a $1.2 million one-time opioid settlement allocation.

Federal grant compliance and fund swaps: Williamson described a department request to swap fund sources to return Idaho to compliance with federal Substance Use Block Grant administrative caps, which limit the share of federal block-grant dollars used for administrative/personnel costs to 5%. To comply while maintaining staffing, the department is asking to transfer $533,900 from liquor-control (state dedicated) funds to cover certain personnel costs and concurrently move $673,900 of federal funds from personnel to trustee and benefit payments so the federal share of administrative spending falls below the 5% threshold.

988 contractor questions: Representative Tanner raised concerns about the organization running 988; the committee discussed Janus (a vendor name used in the presentation) and Magellan, which under contract manages the service. Director Adams told the committee the department’s relationship is with Magellan, and Magellan contracts with a vendor to run 988: “We want there to be services available when people call and I think the Department is agnostic as to who the contractor is,” Adams said. The department said it would discuss contractor arrangements with Magellan if the committee wishes.

Committee follow-up: Committee members asked for additional detail on the opioid-settlement uses (for example, Boise State’s collegiate recovery program) and on the performance and outcomes tied to Millennium Fund pass-throughs. Director Adams and analysts said the department serves primarily as a pass-through for some millennial/Millennium Fund and opioid-settlement grants and offered to provide reports and updates on outcomes and metrics.

Provenance: The substance abuse presentation began when Alex Williamson reintroduced herself for the substance abuse agenda item (transcript excerpt: "Mr. Chair, members of the committee, again for the record, my name is Alex Williamson, budget and policy analyst with Legislative Services. Last up for me, on the agenda for you today is the substance abuse treatment and prevention program within the Department of Health and Welfare.") and concluded when Williamson ended her remarks and stood for questions (transcript excerpt: "Thank you, director. I don't see any more lights anywhere. Thank you, miss Williamson.").