25-33% Local Government Share
Where do these monies live?
Twenty-five percent (25%) of Illinois’ opioid settlement funds is paid to local governments in two distributions:[1]
10% is allocated directly to counties according to Exhibit A-2 of the Illinois Opioid Allocation Agreement.[2]
15% is allocated to municipalities and townships according to Exhibit A-1 of the Illinois Opioid Allocation Agreement.[3]
Additionally, a separate agreement between the state and city of Chicago directs 40% of the state’s share of the Distributor and Janssen settlements — 8% of Illinois’ total monies from these settlements — to the city.[4] This means that a total of 33% of Illinois’ funds from the Distributor and Janssen settlements are allocated to local governments.
What can this share be spent on?
Illinois’ Opioid Allocation Agreement requires at least 70% of its settlement proceeds to be used on “specified” opioid remediation or abatement programs,[5] and local governments’ spending restrictions depend on their sources of funds:
The 10% allocated to counties according to Exhibit A-2 must be spent on Exhibit B uses “to support opioid remediation programs in their community.”[6]
The 15% allocated to municipalities and townships according to Exhibit A-1 from the Distributor and Janssen settlements are not restricted for use on approved abatement programs.[7] For other settlements (e.g., CVS, Walgreens), at least a portion of monies in this allocation must be spent on abatement uses because these settlement agreements require a higher percentage of funds be spent on opioid remediation.[8]
The 8% of the state share from the Distributor and Janssen settlements allocated to Chicago must be spent by the city on Exhibit B’s approved abatement programs.[9]
The state’s Exhibit B is identical to the national settlement agreements’ Exhibit E and includes prevention, harm reduction, treatment, recovery, and other strategies.
Who ultimately decides how to spend this share (and how)?
Localities decide autonomously (but some must report spend). Decisionmakers for counties, municipalities, and townships, including the city of Chicago, will ultimately decide for themselves how to spend their funds from this share.[10] Counties must report their spending to the state,[11] and the city of Chicago must likewise report spending of the 8% of the state share from the Distributor and Janssen settlements allocated to it.[12] No such reporting obligations apply to other municipalities and townships.
Are supplantation uses prohibited for this share?
No, supplantation is not prohibited. Like most states, Illinois does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that counties, cities, and towns may spend their shares ways that replace (or “supplant”) — rather than supplement — existing resources.
Can I see how this share has been spent?
Up to each locality (no public reporting required, only some intrastate). Opioid settlement expenditures are not officially published in a centralized location for this share. Additionally, while counties and the city of Chicago must report some or all their settlement spending to the state,[13] there is no requirement that these reports be published in a publicly accessible location. There are no reporting requirements applicable to funds from this share allocated to municipalities and townships.[14]
Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.
What else should I know?
Not applicable.
Citations
See Illinois Opioid Allocation Agreement, Secs. 3.A(b)(i)-(ii); Agreement Relating to the Distributor and J&J Opioid Settlements (“State-Chicago Agreement”). ↑
Illinois Opioid Allocation Agreement, Sec. 3.A(b)(ii). ↑
Illinois Opioid Allocation Agreement, Sec. 3.A(b)(i). This 15% is distributed to (1) “municipalities and townships who are [participating local governments] and who filed a lawsuit against an Opioid Defendant by September 1, 2020,” and (2) “municipalities who are [participating local governments] with a population of at least 30,000 according to the 2019 United States Census Population Estimate whether or not they have filed a lawsuit against an Opioid Defendant.” Id. Any monies remaining from this 15% share are allocated to participating counties according to the percentages in Exhibit A-2. Id. ↑
Agreement Relating to the Distributor and J&J Opioid Settlements, Sec. (c) (“State-Chicago Agreement”). ↑
Illinois Opioid Allocation Agreement, Sec. 3.A (relating to “any [opioid settlement] sum”). ↑
Illinois Opioid Allocation Agreement, Sec. 3.A(b)(ii). ↑
Illinois Opioid Allocation Agreement, Sec. 3.A(b)(i). See, e.g., Exhibit A to the Allocation Agreement for a discussion of attorneys’ fees. ↑
See, e.g., CVS Settlement Agreement, Sec. V(B)(1) (minimum 95.5% opioid remediation spending); Walgreens Settlement Agreement, Sec. V(B)(1) (minimum 95% opioid remediation spending); Walmart Settlement Agreement, Sec. V(B)(1) (minimum 85% opioid remediation spending). It would be impossible, for example, for Illinois to satisfy the 95% opioid remediation spending requirement in the Walgreens settlement unless at least 2/3 of funds allocated to municipalities and townships (i.e., 10% of Illinois total settlement funds) was spent on abatement uses. ↑
State-Chicago Agreement, Sec. (c) (“The City is obligated to use the distributions in this paragraph (c) to support opioid remediation programs in its community through uses included in the list of Approved Abatement Programs attached as Exhibit B”). The state’s agreement with Chicago applies only to the state’s 20% share of the distributor and Janssen settlements. See State-Chicago Agreement (“The Parties agree to the following terms relating to the allocation of money from the Distributor and J&J Settlements…”). ↑
Opioid Allocation Agreement, Secs. 3.A(b)(i)-(ii); State-Chicago Agreement. See, e.g., City of Chicago Announces New Initiatives to Combat the Opioid Epidemic Using Funds from Settlements with Pharmaceutical Companies. City of Chicago Mayor press release. March 3, 2023. Accessed August 23, 2024 (reporting mayor’s and Chicago Department of Public Health’s joint announcement on funded programs). ↑
Opioid Allocation Agreement, Sec. 3.A(b)(ii) (“Each [local government] receiving an allocation from this [10%] shall track and quarterly report to the Attorney General all monies spent to support opioid remediation programs”). ↑
State-Chicago Agreement, Sec. (c) (“The City shall track and quarterly report to the Attorney General all monies spent to support opioid remediation programs from these monies”). ↑
Opioid Allocation Agreement, Sec. 3.A(b)(ii); State-Chicago Agreement, Sec. (c) (requiring reporting for the 8% of Illinois’ total opioid settlement funds from the Distributor and Janssen settlements that are allocated to the city of Chicago). ↑
Compare Opioid Allocation Agreement, Sec. 3.A(b)(ii) with Opioid Allocation Agreement, Sec. 3.A(b)(i). ↑
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