How Will Leelanau County Spend Its Opioid Settlement Money?

Leelanau County is finally making a move to spend its hundreds of thousands of dollars in opioid settlement money.

The county’s Board of Commissioners voted Tuesday to issue a request for proposals (RFP) seeking funding requests from “qualified organizations, agencies, healthcare providers, licensed health care and mental health practitioners, community groups, schools, non-profits, or governmental entities for programs and services that address the impacts of the opioid epidemic within the county.” It’s Leelanau’s biggest gesture yet toward spending a growing pile of cash earmarked for countering the nationwide opioid crisis.

According to a memo from County Administrator Jim Dyer, Leelanau County has thus far received $293,666.52 in settlement money, and “anticipates receiving approximately an additional $30,000 during 2026 under the current settlement distribution schedule.” Per Dyer, the county has spent “approximately $96,000 of these funds for opioid-related purposes."

The money comes from a series of landmark lawsuits settled in recent years against opioid manufacturers, distributors, and pharmacies. Michigan is expected to receive approximately $1.8 billion in opioid settlements by 2040, with $1 billion going to the state and $800 million distributed amongst local city, county, or township governments.

Leelanau County’s portion will be around $850,000 when all is said and done, based on current estimates.

Commissioner Alan Campbell brought the matter of how to spend the settlement money to the table at an executive board meeting in February, expressing his desire to “keep moving forward” with distribution plans. Commissioners acknowledged that Grand Traverse County was already working on a plan to distribute its opioid funds, and that Leelanau should follow suit.

Michigan began receiving opioid settlement funds in 2023, but most communities have been slow to enact distribution strategies. According to a report from Bridge Michigan published last week, Michigan’s local governments have only spent 18 percent of the opioid money they’ve received so far, and have a combined $176 million in settlement dollars sitting in bank accounts.

Leelanau County’s new RFP is intended “to identify effective, evidence-based, and community-focused projects that improve public health and reduce the impact of opioid misuse in Leelanau County.” Opioid dollars can only be spent on a few approved categories, including drug prevention and education, treatment services, recovery support, harm reduction, public safety and community response, and services for children and families.

Speaking at last week’s executive board session, Commissioner Gwenne Allgaier acknowledged Leelanau County's unique situation given it has no drug treatment facilities within its boundaries. Allgaier urged commissioners to consider allocating some of the settlement funds toward transportation programs to help residents access recovery services in other counties.

“It’s really important, if you’ve gone to treatment, that the after-care programs continue,” she said.

It remains to be seen how Leelanau County will approach its opioid spending, though. Last week, commissioner Ty Wessell urged the county board to set some priorities for the RFP process, but no formal decisions were made. 

“We have several good agencies that provide services in substance and opioid use,” Wessell said. “We don’t have enough money to pay a whole lot of private practitioners to provide private service; the money will run out before we meet the need. So, I think our priority has to be supporting agencies and organizations that are working with and providing support for our families.”

Also up in the air is who will make the final decision about where the money goes. Campbell noted last week that some counties have created dedicated committees, while others have chosen to keep the oversight “wholly within the board.” Several commissioners expressed interest in assembling a committee that brings in expertise from outside the board.

Grand Traverse County formed a dedicated committee for distributing funds, called the Opioid Settlement Spending Advisory Committee. That group includes representation from the county commission, Grand Traverse County’s Health Department, Sheriff’s Office, and Prosecuting Attorney’s Office, as well as community members from fields like public or behavioral health, harm reduction, and social services.