State seeks fund-source changes after federal guidance flags higher administrative spending on substance-use block grant

Alex Williamson, budget and policy analyst with the Legislative Services Office, reviewed the Substance Abuse Treatment and Prevention program budget. The division is organized under the Department of Health and Welfare’s Division of Behavioral Health and was allocated 16 FTP; the program reported four vacancies at the time of the budget submission.

Williamson told the committee that an $8 million state opioid response grant was made ongoing in fiscal 2024, and earlier COVID-related funds and one-time appropriations had driven year‑to‑year changes. Fiscal 2024 expenditures totaled approximately $22.7 million, and trustee and benefit payments accounted for about 70.6% of the spending.

Committee focus: the division requested net‑zero fund‑source adjustments to address a federal corrective action. Federal guidance for the substance‑use block grant limits administrative/personnel spending to 5%; Idaho was placed on a corrective action plan for exceeding that 5% cap. To remain in federal compliance while maintaining current staffing, the department asked to shift $533,900 from liquor control (a dedicated fund) to cover personnel costs and to move $673,900 from personnel to trustee and benefit payments on the federal fund side. Williamson said the department is limited from making some transfers internally and thus sought legislative approval for the swaps.

Separate items: the budget included $1.2 million one‑time opioid settlement funds in fiscal 2025 and ongoing appropriations tied to Millennium Income Fund activity that supported community‑based recovery centers and tobacco‑compliance activities. Director Alex Adams described the department as largely a pass‑through for some grants and said the department has limited operational oversight of passthrough recipients.

Representative Tanner asked whether Boise State’s $100,000 opioid‑settlement allocation for a collegiate recovery program had produced results; Director Adams said Boise State reported establishing a collegiate recovery program with seven social events and participation figures he summarized and suggested committee members ask Boise State for operational detail at its budget hearing.

Ending: the committee discussed whether the department should be a pass‑through for certain Millennium and opioid settlement funds and asked the department for written follow‑up on program impacts and on performance measures for prevention and recovery initiatives.