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Board approves reconciliation plan after finding $2.3 million of opioid‑settlement funds commingled
Summary
County behavioral health told supervisors that opioid settlement funds were commingled with other SUD cash, identified about $2.3 million to restore, and proposed a controlled repayment and new governance measures; the board accepted the reconciliation framework and set reporting and contract‑amendment directions.
Elise Jones, director of Lake County Behavioral Health Services, told the Board of Supervisors that a recent reconciliation found opioid settlement funds (OSF) had not been maintained separately and that approximately $2,300,000 needs to be restored to the OSF account.
Jones said the county will request a dedicated OSF fund, tighten accounting controls, and bring quarterly reports to the board. "We have effectively pulled through all of our accounting, identified all of the OSF dollars," she said, adding that about $8 million of the county's projected total allocation (roughly $22 million) has arrived to date and that peak payments are projected around 2030.
Supervisors pressed staff for contract protections and faster restoration. Supervisor (speaker 3) said she wanted stronger clawbacks and amendments so the county can recover funds if contractors sell assets built with OSF money. "I would like to see an amendment … that if they sell the building… the state can grab their money back," she said, asking for amendments within 30 days.
Behavioral Health proposed an illustrative restoration schedule — an immediate $700,000 allocation and monthly payments of $180,000 until the $2.3 million is restored — designed to avoid disrupting current SUD operations. Amber Looch, fiscal staff, described the plan as "a very controlled repayment so that we're not overextending ourselves."
The board voted to accept the reconciliation and restoration framework and separately approved OSF planning categories for future budgeting and reporting. Supervisors also directed behavioral health to: create a monthly OSF tracker, transfer OSF to its own fund once reconciled, pursue contract amendments to protect county investments, and return with regular updates on receipts, expenditures, restoration progress, and outcomes.
Jones said staff would continue a historical review of allowable uses to finalize the amounts needing restoration and would coordinate with County Counsel on stronger contract language going forward. "We will have tighter accounting controls," she said, and asked the board for direction on cadence to revisit the plan.
Public commenters representing contract recipients and tribal partners expressed both concern and support for expanded services funded by OSF, emphasizing that community programs are already seeing positive change.
