15% State Share
Where do these monies live?
The state government’s 15% share of opioid settlement funds is directed to the North Carolina General Assembly.[1] The monies are held in the Opioid Abatement Reserve, which sits within the state’s General Fund.[2]
What can this share be spent on?
With limited exceptions,[3] this share can be spent on the state government’s litigation costs and to “abate and remediate the harms caused to North Carolina and its citizens by the opioid epidemic.”[4]
Who ultimately decides how to spend this share (and how)?
State legislature decides. The North Carolina General Assembly ultimately decides how to appropriate this share as part of its normal budgeting process.[5]
In past years, the General Assembly has appropriated most of its share to the North Carolina Department of Health and Human Services (DHHS), whether for its own remediation uses or for the agency to distribute as sub-grants to organizations.[6]
Is this share attached to an explicit bar against supplantation?
No, supplantation is not prohibited. Like most states, North Carolina does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 15% state share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.
Can I see how this share has been spent?
Yes (neither public nor intrastate reporting required). View summaries of the General Assembly’s appropriations here.[7]
Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.
What else should I know?
The legislature appears to have become more specific with its appropriations from the Opioid Abatement Reserve over time. Compare the more general appropriation to DHHS in the 2021 budget with the detailed allocations to specific organizations in the 2023 budget.
Citations
Memorandum of Agreement Between the State of North Carolina and Local Governments on Proceeds Relating to the Settlement of Opioid Litigation (MOA) B.2 (“15% [shall be allocated] directly to the State (‘State Abatement Fund’)”). Supplemental Agreement III.B(2). See Frequently Asked Questions on the Memorandum of Agreement on the Allocation, Use, and Reporting of Opioid Settlement Funds in North Carolina. North Carolina Department of Justice. July 2024. Accessed August 13, 2024 (“The North Carolina General Assembly (NCGA) decides how to spend the 15 percent state share in keeping with the broad requirement – stated in the national settlement agreements and the MOA – that such funds be spent on opioid remediation activities”). ↑
S.L. 2021-180, Secs. 9F.1.(a)-(b) (2021 Appropriations Act), as amended by S.L. 2022-103 (2022 Appropriations Act). ↑
MOA B.5 (all funds to be spent on opioid remediation “except as related to the payment of the Parties’ litigation expenses and the reimbursement of the United States Government”). ↑
S.L. 2021-180, Sec. 9F.1.(a) (2021 Appropriations Act), as amended by S.L. 2022-103 (2022 Appropriations Act). ↑
S.L. 2021-180, Sec. 9F.1.(a) (2021 Appropriations Act), as amended by S.L. 2022-103 (2022 Appropriations Act) (“Reserve may be allocated or expended only by an act of appropriation by the General Assembly”). See also MOA B.5 (“all Opioid Settlement Funds, regardless of allocation, shall be utilized only for opioid remediation activities”) and Supplemental Agreement III.B(5) (“The use of Additional Funds for opioid remediation activities shall be as described in MOA section B.5”). ↑
State Spending of Opioid Settlement Funds More Powerful NC website. Accessed August 13, 2024. (see “FISCAL YEAR 2021-2022,” “FISCAL YEAR 2022-2023,” and “FISCAL YEARS 2023-2024 AND 2024-2025”). More Powerful NC is a campaign led by Attorney General Josh Stein and DHHS Secretary Mandy Cohen. ↑
Embedded throughout are links to the state budgets themselves. ↑
Last updated
