Title
Continued Authorization for Spending of Opioid Litigation Settlement Funding
Action
Action:
Adopt a resolution to direct the expenditure of opioid settlement funds.
Body
Staff Resource(s):
Marie Harris, Strategy and Budget
Explanation
* On March 13, 2023, City Council authorized an interlocal agreement with Mecklenburg County to pool the city and county's share of opioid settlement funds.
* The Memorandum of Agreement (MOA) included partnering with Mecklenburg County to invest the city's share of settlement proceeds in two specific permitted uses included in the MOA: recovery housing support and employment-related services. The MOU also included that future settlement proceeds be directed to Mecklenburg County.
* This action satisfies requirements in the Memorandum of Agreement (MOA) regarding the formal authorization of additional opioid settlement expenditures.
Background
* In 2021, the North Carolina Department of Justice (NCDOJ) entered into two national opioid litigation settlement agreements on behalf of local government with the largest pharmaceutical manufacturers and distributers (McKesson, Cardinal Health, and AmerisourceBergen, and Johnson & Johnson) which resulted in payments of $757.7 million to the state and local governments in North Carolina to respond to the opioid public health crisis.
* Additional national opioid litigation settlements have been reached with pharmacies including CVS, Walgreens, Walmart, Allergan, and Teva.
* The city has been allocated a total of $14,467,489 through these settlement funds. These proceeds are scheduled to be paid in annual installments over the next 14 years, with an estimated annual average payment of $964,499. Mecklenburg County has been allocated a total of $58,430,874, with an estimated annual average payment of $3,895,392.
* A pending settlement with Kroger could bring an additional $40 million to be distributed between state and local governments in North Carolina over the next 11 years.
* Th...
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