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Hagerstown opioid settlement funds plan advances through health department partnership

HAGERSTOWN – With a state deadline approaching, the Hagerstown Mayor and City Council decided during a work session to partner with the Washington County Health Department. This move will help keep about $436,000 in opioid restitution funding and give them more time to create a full spending plan.

City staff told the council that the funding, set aside for Hagerstown from 2022 to 2026 through Maryland’s opioid restitution program, needs a documented plan or a named recipient sent to the state by June 30. If the city misses the deadline, the money will go to Washington County instead.

Michelle Hepburn, the city’s chief financial officer, explained that staff had identified three possible funding paths.

The first option would have the city submit a complete five-year spending plan with detailed program descriptions, goals, and ways to measure results before the deadline. The second option would let the city set up a broader grant process, similar to its earlier American Rescue Plan Act funding for nonprofits, but this would mean losing the current $436,000 because it could not be finished before June 30.

Instead, staff suggested a third option: sign a short agreement with a community partner before the deadline. This would keep the funding and give both sides more time to work out a detailed agreement and finish the five-year plan.

With this plan, the Washington County Health Department would be the city’s community partner.

Council members said the health department already runs opioid response programs and has joined stakeholder meetings in recent months. This makes it a good choice for managing the funds and keeping the focus on Hagerstown residents.

“If I were to choose, I would go with option three,” Councilwoman Tiara Burnett said, pointing out that the health department already has a plan and opioid-related programs that could be adjusted for the city. Council members also said the final agreement should stay focused on the city and include clear rules for accountability, timelines, and oversight.

Staff pointed out that opioid restitution funds have much stricter rules than most regular grant programs.

Officials said that every dollar spent must go directly to opioid prevention, treatment, or recovery. Programs for homelessness, crisis help, or public safety only count if they are clearly linked to opioid use disorder.

The reporting rules are also very detailed.

Staff said that every dollar spent must be tracked and reported publicly through the state’s opioid settlement system. The rules are as strict as, or stricter than, many federal grants. Because of this, city officials said working with an agency that already runs opioid response programs would make paperwork easier and help meet the rules.

Council members also asked about whether the funding could help city law enforcement. Staff explained that opioid settlement money cannot be used for general police work. Only activities directly related to opioid responses would count, so officers’ time would need to be carefully tracked and limited to those tasks. The health department already runs diversion and recovery programs that can work with law enforcement and meet these rules.

Several council members said the agreement should only cover the current $436,000 and should not automatically include future opioid restitution funds.

Staff agreed that the agreement could be set up to cover just the current funding cycle, so the city can look at other options when more funds come in. Council members also said they should start future talks much sooner to avoid another last-minute deadline.

By the end of the work session, council members told staff to start preparing the first agreement with the Washington County Health Department.

The agreement will keep the city eligible for the current opioid restitution funds before the June 30 deadline. A more detailed agreement, covering responsibilities, projects, and performance measures, is expected to go back to the mayor and council for review in July.

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