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State seeks fund shifts to comply with federal block-grant rules; DHW reports opioid and recovery investments
Summary
The Department of Health and Welfare asked the Joint Finance-Appropriations Committee to approve fund‑source and object‑class adjustments so Idaho remains in compliance with a federal 5% administrative cap on the Substance Use Block Grant while maintaining current staffing and subgrant activity.
The Department of Health and Welfare asked the Joint Finance-Appropriations Committee to approve fund-source and object-class adjustments so Idaho can remain in compliance with a federal 5% administrative cap on the Substance Use Block Grant. Legislative Services analyst Alex Williamson summarized the division’s recent grants, ongoing appropriations and the department’s requested fund swaps.
Key requests and background: Williamson said the division received a one‑time COVID relief appropriation (about $8.3 million) for enhanced treatment and prevention work and an $8 million State Opioid Response grant that was later made ongoing. The department received a $1.6 million ongoing enhancement for substance‑use work in FY2025; $1.3 million of that came from the Millennium Income Fund for community‑based recovery centers. The department also received a $1.2 million one‑time opioid‑settlement appropriation.
Federal compliance issue and remedy: Williamson told the committee that federal guidance placed Idaho on a corrective action plan after the state exceeded the 5% administrative/personnel cap for the substance-use block grant. To address the compliance issue while keeping current staffing levels, the department proposed swapping fund sources: move $533,900 from liquor control/dedicated funds to pay personnel costs and move $673,900 of federal fund personnel costs back into trustee and benefit payments on the federal side, effectively shifting which fund pays salary versus subrecipient payments.
Director Adams described the practical effect as the department using dedicated state receipts to support personnel so federal funds can be used for subgrants and trustee/benefit payments. Legislative members criticized this as a cosmetic fix. Miss Williamson and Adams said the department also proposed a net reduction of 4 FTP in the substance-abuse team as part of broader budget adjustments.
Opioid settlement and pass-throughs: Committee members asked about how opioid settlement funds were used. Adams said Boise State University’s collegiate recovery program received a pass‑through amount (the hearing referenced $100,000); Adams reported Boise State staff had established a recovery program on campus and had “hosted 7 social events for 3 75 students” (transcript wording). Adams said DHW is a pass‑through check‑writer for some of these community grants and recommended that, where possible, the legislature not rely on DHW as the intermediary for recurring operational programs.
Prevention, recovery and measurement: Director Adams and staff said the department is supporting prevention and recovery initiatives including community‑based recovery centers and Idaho Drug Free Youth chapters. Committee members asked for written reports on outcomes and for the department to provide more detailed performance metrics and follow‑up on how settlement and Millennium Fund dollars are being spent.
Next steps: The department will provide additional documentation and performance reports to the committee and has asked the committee to approve the fund‑source adjustments to remain in federal compliance while maintaining program services.
