City immediately provides $20 million in restitution funds to Baltimore Health Department; new executive order creates administrative structure and trust for remaining restitution funds
The decree is based on national best practices and focuses on community involvement, transparency and accountability
BALTIMORE, MD (Thursday, August 29, 2024) – Today, Mayor Brandon M. Scott joined city and state leaders, advocates, caregivers, and residents on the front lines of the fight against opioid overdoses in signing an Executive Order that creates a comprehensive framework for the administration of opioid reimbursement funds in the City of Baltimore. The order follows recent announcements of settlements the City has won against major pharmaceutical manufacturers and distributors, now totaling $242.5 million. The City remains embroiled in litigation with several other opioid manufacturers and distributors that account for the largest market share, and the trial is scheduled to begin on September 16.
“Every community is affected by the opioid overdose epidemic, but here in Baltimore, we are disproportionately affected – particularly due to the actions of reckless actors in the pharmaceutical industry,” said Mayor Brandon M. Scott. “We decided to pursue our lawsuit against these companies to the end and forego the global settlements offered during the process because we knew how deeply our community was impacted and how important it was that these companies maintain appropriate financial accountability. But winning the funds is not enough – we must put them to work. This Executive Order will ensure that the reimbursement funds are managed responsibly, transparently and effectively to support our residents and communities most impacted by the epidemic – not just during this administration, but for years to come.”
In today’s announcement, Mayor Scott outlined his intent to immediately support the Baltimore City Health Department’s active and ongoing work to combat the overdose epidemic through a new allocation of $20 million. As part of the settlements, $42 million has already been allocated to certain care providers and organizations working to address substance use disorders and their impact on neighborhoods, including: $5 million to Charm City Care Connection, $5 million to the Enoch Pratt Free Library Peer Navigators program, $5 million to the Law Enforcement Assisted Diversion program, $5 million to Healing City Baltimore, $1 million to Roberta’s House, $1 million to From Prison Cells to PhD, $5 million to Tuerk House, $5 million to Helping Up Mission, $3 million to Baltimore Safe Haven, $3 million to HOPE Safe Haven, $2 million to More Than a Shop, $1 million to Marian House and $1 million to Turnaround Tuesday.
The administrative structure outlined in the Executive Order will manage the remaining funds from the settlement payments and any future funds secured through settlements or in ongoing litigation. As noted in the Executive Order, the City will pursue a strong citizen participation initiative to ensure Baltimore residents play a key role in guiding the use of these funds and can see the impact directly in their communities. The citizen participation strategy will include in-person and virtual town hall meetings, focus groups, and an online survey where residents can submit ideas and feedback. More information about the citizen participation events will be released at a later date.
The Executive Order was drafted by the Mayor’s Office in collaboration with the City of Baltimore’s Health Department, Department of Finance, and Mayor’s Office of Rehabilitation Programs. Sara Whaley, program director of the Bloomberg Overdose Prevention Initiative at the Bloomberg School and senior practice assistant at the school, was instrumental in advising the City in drafting the Executive Order. She is considered a national expert on the use of settlement funds and has advised states across the country on best practices for using opioid settlement funds. In addition, she is the lead author and organizer of “The Principles for the Use of Funds from the Opioid Litigation,” which is considered a national best practice guide for states and localities receiving these funds.
“With this Executive Order, Baltimore will create a clear administrative structure for the use of restitution funds that focuses on community involvement, transparency and accountability,” said Sara Whaley. “This order builds on the nation’s best practices and lays the foundation for ensuring the funds have the greatest impact possible by protecting the funds and ensuring their longevity, by thinking holistically about the role of restitution funds as part of a comprehensive overdose response, and by basing decision-making on the expertise of a diverse range of voices.”
The key provisions of the Executive Order include:
- Establishment of the Baltimore City Opioid Restitution Fund
- Establishing parameters for spending the funds, including a special focus on funding programs, services, and infrastructure related to prevention, treatment, recovery, harm reduction, social determinants of health, and other programs to address the harms caused by the opioid epidemic.
- Establishment of a trust to sustain the impact of these funds in the community for at least 15 years.
- The city must publish a comprehensive, evidence-based overdose reduction strategy, conduct a community needs assessment, develop a robust community engagement plan, and produce a transparency and accountability plan and annual reports to the mayor and city council at least every two years.
- Creating two new positions in the Mayor’s Office: an Executive Director for Overdose Response and an Opioid Restitution Program Manager.
- Establish a Restitution Advisory Board comprised of community members, including individuals with personal experiences of substance abuse, professional practitioners, elected leaders, and senior administration officials or persons appointed by the Mayor to guide the use of the City’s restitution funds.
Interested citizens can now apply to work on the Restitution Advisory Board. You can find the application here.
The full executive order and additional information are available on the city’s website here.
