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Council discusses state guidance and possible local advisory committee for restricted settlement funds
Summary
County staff reviewed a state guidance document and Exhibit E to settlement negotiations that outline restrictions on certain settlement funds and discussed forming a discretionary local advisory committee to recommend uses of those restricted funds.
Staff told the council they received a state document and an Exhibit E from settlement negotiations that describe how certain restricted settlement funds must be used and list prohibited uses. The materials emphasize that restricted funds should not be used for prosecution or for payments directed to individuals who use drugs, according to staff’s summary of the document.
Staff said the state document includes a highlighted table describing items that cannot be paid from the restricted funds and offers recommended best practices for creating a local advisory committee. Creating such a committee would be discretionary for the county; staff characterized the state guidance as helpful in designing the committee and its recommended duties.
Staff reported notice that additional settlement money — separate from funds the county received in 2023 and already allocated — may be forthcoming. Council members were asked to indicate whether they would be willing to create a local advisory committee; staff said more information will be available in November.
Montgomery County was cited as a local example that created an advisory committee and used funds to backfill treatment programming inside the jail after prior funding was lost. Staff clarified that counties may use restricted settlement funds to support existing programs or to expand programs, but cannot use them for purposes explicitly barred in the state guidance.
