Millions of dollars in combined opioid settlement and marijuana revenue funds could soon start flowing into the community, with Grand Traverse County commissioners set to approve an opioid spending plan next Wednesday after adopting a marijuana spending plan in July. Both plans envision a two-track approach in which some funds are allocated internally for county purposes while others are awarded externally as grants to a variety of community organizations and nonprofits.

Commissioners discussed the latest version of the opioid settlement spending plan at a study session Wednesday ahead of a planned vote on the proposal next week. Michigan and other states across the country have reached sweeping settlements with various drug manufacturers, pharmacies, and distributors for their role in the opioid epidemic, with settlement funds required to go toward recovery, treatment, prevention, and harm reduction efforts. Michigan is set to receive $1.6 billion so far, which will be split between the state and local governments.

County Deputy Administrator Chris Forsyth said Wednesday that a recent disbursement means Grand Traverse County has now received over $1.9 million in opioid settlement funds. The county is on track to receive over $6.4 million through 2040. That figure could continue to climb if more settlements are reached, with funds also able to accrue interest. A bipartisan ad hoc committee of commissioners – including Ashlea Walter, Darryl Nelson, and Lauren Flynn – recently worked on a framework for distributing the county’s opioid funds with key assistance from the Grand Traverse County Health Department. That work built on a detailed plan created by a taskforce of community members who met for months to advise the county on its spending approach.

The latest spending plan – which appeared to have broad support among commissioners after some minor revisions Wednesday – calls for establishing two funding tracks for opioid dollars. Track A will be “designated for county departments that currently provide services to individuals affected by substance use disorder,” according to the draft plan. Track B will be “will be distributed to external community partners and action agencies offering services to those impacted by substance use disorder.” The plan calls for an initial 60-40 percent split between Track A and Track B, though that percentage can be tweaked annually. Allocations for both tracks will be focused toward five funding categories or “pathways,” including prevention, treatment, recovery, harm reduction, and criminal/legal.

Previous drafts contemplated having two separate committees to oversee each track. However, commissioners Wednesday opted for what they believed would be a more streamlined, efficient approach by having just one advisory committee, which would make annual recommendations to county commissioners on spending allocations for both tracks. That committee would have seven appointed representatives from the following groups: the courts/legal community, the county health department, the board of commissioners, the Sheriff’s Office, a medical provider, a substance use disorder provider, and a prevention specialist. Appointees will serve set terms of potentially up to three years, though commissioners still need to finalize the governance structure.

A draft budget showed a rough estimate of approximately a half million dollars annually to be allocated between the two tracks. Commissioners weighed the pros and cons of investing more heavily in certain programs upfront or spreading allocations out over the long term, as well as how best to utilize interest from accruing funds. Most commissioners – and Grand Traverse County Deputy Health Officer Mike Lahey – supported a longer-term approach that could help provide steady allocations for the foreseeable future to support community programs and personnel, even if the funding isn’t a silver bullet or nearly enough to meet all of the local needs.

“By building sustainable programs through this approach…we’re here to stay,” Lahey said. “If you don't address the planning for future years, what are you going to do when the landscape changes and those funds may not be available?”

Commissioners previously considered partnering with the Grand Traverse Regional Community Foundation to manage the grant application process for community groups in Track B. Health Department staff had indicated they didn’t have the internal capacity to manage such a process. However, after the Community Foundation said such a partnership would require final grant decisions to rest with its own board and not the county board, commissioners Wednesday abandoned that approach.

“That is our responsibility…to make those ultimate decisions,” said Vice Chair TJ Andrews. “I am not interested in abdicating that responsibility to the Community Foundation.” Lahey said his department determined after internal review it could in fact assist in administering the grant process, though commissioners said they could also contract for outside assistance if needed. Commissioners also said they want to have an outside annual review of their process to ensure the spending plan is functioning appropriately.

A separate plan for distributing the county’s annual marijuana revenues was approved by commissioners in July and is set to roll out in the coming weeks. The Michigan Department of Treasury distributes 15 percent of revenues from taxes and fees on marijuana facilities to municipalities throughout the state based on how many such businesses are operating in their boundaries. Grand Traverse County – which had sixteen microbusinesses or retail establishments operating in 2024, including 13 in the City of Traverse City, two in Green Lake Township, and one in Fife Lake Township – received $886,000 in revenues last year and is slated to receive $931,658 this year. The funds are “unrestricted and can be used by the county for any purpose we choose,” says County Administrator Nate Alger.

The spending plan approved by commissioners will divide marijuana revenues annually between internal county needs and external community needs. The latter will be awarded to eligible institutions – including nonprofits, churches, educational institutions, and economic development organizations – in grant amounts ranging from $25,000 to $100,000 through an annual application process. An internal committee will be responsible for reviewing applications and making recommendations to commissioners for approval. The county is set to distribute $500,000 to local organizations this year.

According to a county release, “priority will be given to applications that clearly demonstrate how they advance the county’s strategic goals, such as planning for sustainable growth and focusing on the needs of the community. Applications will be scored according to their level of adherence to the strategic plan and the level of projected impact on the community.” Funding will be distributed as one-time grants, though multi-year funding is possible for “continuation projects with proper justification,” the release states. The application process is expected to go live on the county’s website in September, along with more detailed information on application requirements.