Here’s how the Maine Attorney General’s office is spending its share of the opioid settlement money

Maine has allocated over $260 million in opioid settlement funds over the past five years, with the Attorney General’s Office receiving one-fifth of the money. However, questions about transparency in spending decisions have emerged as new data reveals how these funds are being distributed.

According to information obtained by The Maine Monitor and made public for the first time, the AG’s Office under Aaron Frey has spent $10 million of the $17.2 million it has received so far. More than half of those expenditures went directly to the Department of Health and Human Services.

The settlement money aims to address the devastating opioid epidemic that has claimed thousands of lives in Maine. The funds are intended to support prevention efforts, harm reduction initiatives, treatment programs, and recovery services. While the settlements include specific guidelines for approved uses, most oversight decisions are left to individual states.

Maine’s settlement distribution follows a three-way split: 50 percent goes to the Maine Recovery Council, 30 percent to towns and counties (known as direct share subdivisions), and 20 percent to the AG’s Office. The agreements establish strict guidelines for the Recovery Council’s spending process, requiring open meetings, annual public forums, and a public dashboard.

Unlike the Recovery Council, however, the AG’s Office faces no similar disclosure requirements. The office lacks specific procedures for determining how to spend its portion of the settlement funds, according to spokesperson Danna Hayes.

“The Attorney General is committed to ensuring that settlement funds are used for well-vetted, evidence-based investments,” Hayes said. “Due to the unique nature of the Office, the Attorney General can quickly and creatively be responsive to state and community officials to consider urgent funding gaps or emergency needs not able to be filled by other settlement fund decision-makers.”

Of the $6 million awarded to DHHS, half addressed a budget shortfall in the Office of Behavioral Health. DHHS spokesperson Lindsay Hammes explained that the department had requested $3.6 million annually for substance use disorder services in the governor’s budget. The legislature approved $0.6 million from the General Fund and $3 million from the AG’s Office for the 2024 fiscal year.

A contract between the AG’s Office and DHHS acknowledged that “the need for various program initiatives designed to combat substance use disorder in Maine has surpassed the funding levels currently available.” The one-time infusion was awarded “in recognition of the financial challenges.”

The remaining $3 million to DHHS doubled the number of OPTIONS liaisons from 16 to 32. The Overdose Prevention Through Intensive Outreach Naloxone and Safety program places at least one liaison in each county to connect people who use drugs with local resources.

Critics have raised concerns about using settlement funds to fill budget gaps rather than creating new programs. The settlement agreements specifically state that funds “shall be used solely to supplement and strengthen, rather than supplant, resources.” The AG’s Office maintains that its funding to DHHS was not about saving money elsewhere but ensuring critical programming could continue, particularly amid federal budget cuts.

Additional significant expenditures include $1.2 million to establish the Maine Opioid Settlement Support Center at the University of Southern Maine, $1 million to MaineHousing for low-barrier shelters, and $500,000 each to the Tessa Lee Libby Treatment Center and the Houlton Band of Maliseet Indians for residential treatment facilities.

Unlike the Recovery Council and several direct share subdivisions that award funds through formal grant processes and open meetings, the AG’s Office lacks a structured application system. Hayes noted that “direct public input is not feasible because the Office does not have a grant application or administration structure.”

In at least one instance, an organization approached the AG’s Office after being denied by the Recovery Council. The 1000 Lives Campaign, which aims to reduce opioid-related deaths by working with healthcare providers, received $240,000 from the AG’s Office after the council declined their initial funding request.

The AG’s Office has committed to sharing its spending data with the Maine Opioid Settlement Support Center, which plans to publish comprehensive dashboards in early 2025. The center has already created guides, grant application templates, and evaluation rubrics, fulfilling over 100 requests for assistance from local officials.

Advocates and researchers have warned against repeating mistakes made with tobacco settlements decades ago, when funds were misappropriated and little was spent on anti-smoking efforts. The transparency concerns around the AG’s spending highlight the continuing challenge of ensuring opioid settlement funds effectively address the crisis they were intended to combat.