Committee questions substance-abuse budget shifts after federal administrative cap finding

Alex Williamson (LSO) presented the Division of Substance Abuse Treatment and Prevention’s budget history and enhancements to the Joint Finance-Appropriations Committee. The division’s recent base growth reflects a state opioid response grant and ongoing millennium fund appropriations for community-based recovery centers, opioid settlement recommendations, and public-health actions taken during COVID-19.

The division asked for a net‑zero set of fund shifts to address federal compliance concerns: the federal Substance Abuse Prevention and Treatment block-grant administrative cap limits personnel spending to 5% of the grant. Williamson said federal guidance put Idaho on a corrective action plan for exceeding that cap; to comply while maintaining staffing, the department seeks to move $533,900 from liquor-control dedicated funds to pay personnel costs and simultaneously move $673,900 from personnel on the federal fund side to trustee and benefit payments. The shift effectively reduces the share of federal grant funds allocated to personnel costs while keeping staff in place by using non‑federal dedicated dollars for personnel.

Senator Cook questioned whether the approach was effectively “shuffling” funds to avoid the federal finding. Williamson and Director Adams said the department had reduced FTP for the program and sought to preserve services while addressing federal compliance. Adams said the department will propose net staffing reductions (LSO and department materials show a reduction in FTP from 16 to 12 and modest personnel-cost adjustments) and that some requests were intended as program-level realignments rather than additional spending.

The division’s budget history includes a one-time $8.3 million COVID relief appropriation for enhanced treatment and prevention activities and a continuing $8 million state opioid response grant made ongoing in FY2024. The department also received appropriations from the Millennium Fund for tobacco compliance, Idaho Drug Free Youth and community recovery centers; some of those Millennium Fund allocations were described as pass-throughs to external organizations.

Committee members asked for updates on specific opioid-settlement uses, including a $100,000 award to Boise State University for a collegiate recovery program; Director Adams said Boise State reported seven social events and roughly 375 student contacts, and the director offered to provide the campus report to the committee. Lawmakers sought clearer performance data for prevention programs funded as pass-throughs.