Substance-abuse program seeks fund shifts to meet federal administrative caps; opioid-settlement and Millennium-funded initiatives discussed

The Joint Finance-Appropriations Committee received an overview of Substance Abuse Treatment and Prevention funding, including federal grants, opioid-settlement awards and a proposed fund swap to comply with federal administrative limits.

Alex Williamson, legislative analyst, said the program spent about $22.7 million in fiscal 2024, with 76.4% of that as trustee and benefit payments. Recent appropriations included an $8 million state opioid response grant that became ongoing in 2024 and a series of Millennium Fund appropriations for community-based recovery centers and tobacco compliance, as well as one-time prevention funding.

For fiscal 2026, the division asked the committee to approve transfers of $533,900 from Liquor Control funds to move personnel costs off federal fund accounting and to move $673,900 from personnel to trustee and benefit payments on the federal side. Williamson said the request responds to federal guidance: Idaho has been placed on a corrective action plan because administrative (personnel) spending under the substance-use block grant exceeded the 5% cap. The proposed swap would keep personnel costs available to the program while ensuring federal spending on administrative costs falls below the threshold.

Senator Cook asked whether shifting funds simply “avoids” the sanction rather than fixing administrative spending. Williamson and Director Adams said the department is constrained by statutory limits on transfers and that the Liquor Control fund shift would permit maintaining staffing while achieving federal compliance; the department proposed net FTP reductions elsewhere and is not requesting ongoing general-fund increases for these items, Adams said.

Committee members asked about opioid-settlement pass-throughs, including a $100,000 allocation to Boise State University to create a collegiate recovery program. Adams said DHW served as a pass-through for several Millennium and opioid-settlement awards; the department reported that Boise State’s collegiate recovery program has held seven social events for 375 students and that the Idaho Drug Free Youth program has nine chapters and has hosted a youth summit. Adams said the department has limited operational control over pass-through grants and recommended the legislature consider alternatives to using DHW as a passthrough for program funding.

Representative Tanner pressed for program evaluations and ROI. Adams said reports provided counts of student events and impressions; as a pass-through entity, DHW’s role primarily has been to make payments and collect reports from recipients.