Minnehaha County moves opioid settlement balance into separate fund, authorizes $300,000 budget shift

Minnehaha County commissioners voted June 3 to move opioid settlement proceeds into a dedicated special revenue fund and to shift $300,000 of the Link contribution budget into that fund for 2025.

Susan Beeman of the auditor’s office told the commission the county began receiving opioid settlement funds in 2022 and had been accounting for those receipts in the general fund. She said the Department of Legislative Audit has requested counties account for those receipts in a separate special revenue fund. "To date, we've been accounting for this within the general fund," Beeman said, and recommended transferring the 2024 balance of $514,917.54 into the newly established opioid settlement fund and moving $300,000 of the Link contribution expenditure budget to that fund going forward.

Commissioners debated no further policy change and approved the transfer on a roll-call vote. The motion to adopt Beeman's recommendations was made by Commissioner Bennegga and seconded by Commissioner Heisey; the motion carried.

Why it matters: separating opioid settlement dollars into a restricted fund aligns the county’s accounting with state audit guidance and clarifies how the county will track and report any future expenditures from those settlements. Beeman said future opioid-related transactions will be recorded within the special revenue fund beginning in 2025.

The commission provided no additional conditions on the transfer; the action was procedural and intended to comply with Department of Legislative Audit guidance. The county did not announce any change in the policy direction for how settlement dollars will be spent beyond the previously stated commitment to support the Link program.