Statewide effort aims to dedicate almost $80M to addiction issues

Almost $80 million in the next year and a half could be dedicated to addressing addiction issues in South Dakota.

South Dakota Attorney General Marty Jackley, Sioux Falls Mayor Paul TenHaken and Rapid City Mayor Jason Salamun announced plans Wednesday to use national opioid settlement funds to strengthen addiction treatment centers in Sioux Falls and Rapid City.

“It’s a tragedy today, not something that can wait until tomorrow,” Jackley said. “This is a significant opportunity.”

South Dakota is expected to receive $79 million over an 18-year period from settlements with pharmaceutical companies that helped fuel the opioid epidemic.

The National Opioid Settlement Fund has been handled by the South Dakota Attorney General and is administered by the South Dakota Department of Social Services. So far, more than $31 million has been received. The funds have not yet been spent.

“I appreciate the urgency around this issue because it’s an urgent topic, and we’re excited to talk about how we can grow and expand the existing services we have here in Sioux Falls even before we talk about anything new,” TenHaken said.

“We have existing programs we can pour gas on to continue to grow the treatment options and the services that are available to those who are suffering from addiction.”

The Link in downtown Sioux Falls is one example, he said. It has provided triage services to about 1,500 individuals since opening four years ago, he said.

“The majority of those that we’ve served there are Native American males between the ages of 30 and 59 suffering from addiction issues, and it takes several million every year from the city and county and our health systems to run The Link,” TenHaken said. “Our goal has always been to increase the level of services and provide more wraparound services.”

About two-thirds of those served at The Link also are experiencing homelessness, he added.

“So you can see the tie there,” he said. “We’re ready. These settlement dollars are a result of people who are suffering from opioid addiction, and the manufacturers recognize that. So we’re ready to put these dollars into action.”

Jackley preemptively opposed efforts to create an endowment with the money, pointing out that 15 percent of the fund would be lost because of a penalty tied to the settlement agreement for not spending it now. Plus, the money wouldn’t be available today. A legislative committee will be involved in considering how the funds are spent. If the recommendation isn’t made, Jackley said he will bring the authorization directly to the South Dakota Legislature.

“I’d rather not wait until session,” he added. “I just think it’s a mistake to not utilize this money now. Why would we lose 15 percent of $79 million when we need it now?”

Jackley added that he expects the $79 million won’t be the last funds received.

The men’s prison in Sioux Falls and the women’s prison in Rapid City also will drive a need for additional resources, he said.

At the same time, “I don’t want to have to convict an addict of a felony before we can get them assistance,” Jackley said. “I think this presents that opportunity for us to be able to get ahead of the problem to address the crisis.”