Alabama cities navigate spending of opioid settlement funds

Mobile County’s court system is often inundated with people who lack resources for drug treatment, a problem that compounds the impact of the opioid crisis in coastal Alabama.

But last week, the county’s adult drug court program received $313,736 from the first round of opioid settlement funds to Mobile. The Mobile City Council approved funding for 18 organizations after the Helios Alliance screened them.

“One of our biggest goals is to get funding for the program, and funding for those who want drug treatment and who come in contact with the criminal justice system and have no other means to get treatment,” said Mobile County District Judge Jennifer Wright. “We are grateful for this funding and appreciate the Helios Alliance’s work in assessing community needs.”

The allocation is representative of millions of dollars in opioid settlement money filtering into city halls throughout Alabama. The money comes from the initial rounds of a multi-year payout that is part of an overall settlement from companies accused of aggressively marketing and prescribing painkillers.

Alabama is poised to receive more than $500 million to resolve claims against drug manufacturers and distributors over their roles in the opioid crisis. Cities and counties will get around $300 million.

The first round of settlement money for Mobile was $2.2 million, which the council doled out to the drug court and other groups.

Alabama has been affected by the opioid crisis, with 6,307 deaths between 2015 and 2021 and a 2022 overdose death rate of 31.5 per 100,000, more than double the 2014 rate.

Alabama Attorney General Steve Marshall suggested last year that elected officials in small towns, big cities and counties were uncertain over how to spend their portions of the settlement funds.

Some cities are starting to map out a plan. Partnerships with third-party entities like the Helios Alliance are one of the strategies, illustrated by Mobile’s guidance. In Decatur, the city is in discussions with the Partnership for a Drug-Free Community, and Mayor Tab Bowling said he envisions approaching the city council soon with plan to partner with the group for advice on how best to allocate the settlement funds.

Other cities are handling the money with a different approach.

“Different communities receive different levels of settlement funding based on factors including not only documented opioid related issues locally but a variety of Census data,” said David Dorton, director of communications and legislative affairs with the City of Auburn.

Auburn has gotten $450,000 to date, and city officials are opting to use the money to expand available police and fire equipment focused on lifesaving devices, Dorton said.

“We are aware of the Helios Alliance and the cities that are taking advantage of their offerings, but the scope of funding doesn’t lend itself to going that route locally,” he said.

Partnership

Mobile spent $154,000 last year on a contract with the Helios Alliance to develop a request for proposal exploring the most impactful uses of its settlement money. The organization uses statistical modeling and artificial intelligence to simulate the opioid crisis while assisting local officials how to the best use of settlement dollars.

The Alliance, which is originated out of Mobile, held two community forums and met with interested organizations applying for the settlement money. The group provided the city guidance on how to make the best use of settlement dollars based on three broad requirements: Education, prevention and treatment.

At one of the meetings last year, the Poarch Band of Creek Indians gave $500,000 to Helios Alliance to support their work.

“We are working with folks who are the experts, and approached the city to work with us on the dollars that are coming in so we can use a scientific, evidence-based data driven mechanism to see what will work best,” said Caroline Etherton, chair of the Helios Alliance. “We love starting at home in Mobile.”

Etherton said the Helios Alliance reviewed 32 applications requesting more than $7.35 million.

“So immediately it became a hard process,” she said.

The money to expand the drug court program was the highest allocation the council approved. Also receiving funds: $250,00 to several organizations for a mass media awareness campaign focused on reducing stigma and education the public about treatment in Mobile; $204,915 to Franklin Primary Health Center to expand treatment services including naloxone distribution, peer recovering coaching and overdose prevention; and $200,000 to the Lovelady Center in Birmingham to provide 40 scholarships to women in long-term recovery including room, board and healthcare.

The Mobile County Veterans Treatment Court also received $139,000 to add staffing and drug testing resources for a new program that recently saw its first graduation class.

“The funding we got is fantastic and will help us expand the services for veterans and make things cost less,” said Mobile County Circuit Judge Michael Windom. “I’m glad the city did this in getting Helios, an outside group, to figure out the best way to divide the money.”

Different approaches

Some cities in Alabama are opting to look at allocating the money without hiring a third-party researcher.

In Tuscaloosa, the city has gotten $1.7 million so far. Of that, $1.2 million has been allocated, with $750,000 going to Freedom Farm – a home for abused, abandoned, neglected and at-risk kids – over the next three fiscal years to 2026.

The city is also allocating $300,000 to Phoenix House over the next three fiscal years. The money will go toward supporting a state-certified men’s and women’s rehabilitation center.

In Dothan, the settlement money is being used to open a new crisis center in the Wiregrass. The city has received $970,098 so far in settlement funds, with $975,000 allocated to assist with the opening of the SpectraCare Crisis Center in Dothan. The crisis center, the sixth of its kind in the Wiregrass, opened in February with Alabama Gov. Kay Ivey attending the ribbon cutting.

Some smaller cities are still exploring how to spend the money. In Saraland, the city has received $160,477 in settlement funds, spending $20,061 so far. The only expenses were aimed at purchasing resuscitation equipment and medication and supplies for city paramedics.

“The city has no specific deadline for spending the remaining money,” said Mayor Howard Rubenstein. “We are exploring appropriate uses related to the guidelines for opioid settlement expenditures.”

In Foley, city officials are in a partnership to provide funding with settlement funds to the Dream Center, which provides anti-opioid counseling for youths. The Foley City Council has dedicated $25,000 a year for the next two years to the Dream Center.