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Alliance Health MOU near finalization; county to carry forward unspent dollars
Summary
County staff said an MOU with Alliance Health is close to being finalized and that some of Alliance’s budgeted local dollars were not spent this year because Medicaid expansion reduced the need for local funding; staff proposed a $4.5M local budget figure for Alliance.
Commissioners raised questions about more than $1,000,000 that appears allocated to Alliance Health but not spent in the current year. County staff explained Alliance’s budget and use of Medicaid expansion revenues, and said they plan to reduce the Alliance line to $4,500,000 based on historical expenditure patterns while allowing unspent dollars to carry forward to the next fiscal year.
“Part of the reason is lower is because of the dollars made available through Medicaid expansion,” County Manager Claudia Hager said, noting that Alliance used other funding sources first and therefore did not exhaust local dollars. Staff described the Alliance agreement as near completion: “The agreement is close to being finalized, and we'll give the board an update on that status,” Hager said. Staff also told the board the services are scheduled to begin early in the next fiscal year.
One commissioner added that Alliance has not yet executed a memorandum of understanding describing the services, which staff acknowledged has caused delays but said the MOU is imminent. Staff said some Alliance funds will be used to support Durham Public Schools in the next fiscal year as planned.
