Call to Order and Roll Call
The first meeting of the Budget Review Subcommittee on General Government, Finance, and Public Protection of the Interim Joint Committee on Appropriations and Revenue was held on Thursday, August 28, 2014, at 2:00 PM, at the Northern Kentucky Convention Center, Covington, Kentucky. Senator Christian McDaniel, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Christian McDaniel, Co-Chair; Representatives Mike Denham, Adam Koenig, Tom Riner, and Wilson Stone.
Guests: Sean Riley, Chief Deputy Attorney General, Office of the Attorney General; Rick Wurth, CEO, Children’s Home of Northern Kentucky; and Tad Campbell, Agricultural and Natural Resources Agent for Mason County.
LRC Staff: Jennifer Rowe, Katie Comstock, and Spring Emerson.
Chief Deputy Attorney General Riley provided an overview of the 2013 Pharmaceutical Settlements, the Substance Abuse Treatment Advisory Committee (SATAC), and the Tobacco Master Settlement Agreement.
In response to questions from Representative Koenig, Mr. Riley said the geographic scope of impact is the component that requires applicants to demonstrate need. Although there may have been more substance abuse treatment options available statewide, Kentucky was lagging in meeting the standard of care treatment needs for adolescents around the state. The SATAC took this obligation very seriously, and they brought key providers together to deliver those services. The total number of adolescents being treated will be provided to the subcommittee at a later date.
In response to questions from Representative Stone, Mr. Riley said funding announced as of August 11 has not yet been sent out. The Kentucky Housing Corporation, the administrative agent for these grant programs, will administer the distribution of the grant funds over a two-year period. Each grantee will operate distinctly based on their unique needs. Each of them has reporting requirements, and SATAC is required to produce an annual report of the grant funds and their use, with sustainability being a key factor.
In response to questions from Representative Denham, Mr. Riley said SATAC emphasized treatment rather than prevention. Funding to continue the programs after the two-year grant period would be provided through third-party health organizations, Medicaid, Medicare, or fund-raising or other efforts in the community.
In response to questions from Chairman McDaniel, Mr. Wurth said national authorities indicate that medically assisted treatment is the flagship of care and the endorsed way of proceeding.
In response to questions from Chairman McDaniel, Mr. Riley said the drug settlements were unique to Kentucky, and in each case, Kentucky opted out of larger global settlements organized by the National Association of Attorneys General. SATAC tabled the remaining amount of approximately $1 million to explore other opportunities consistent with SATAC’s mission. The core of the addiction problem in Kentucky is with opioids and heroin, although treatment is designed for a broader range of addictions.
In response to a question from Chairman McDaniel, Mr. Riley said there was no more pending Tobacco Master Settlement Agreement litigation.
There being no further business before the subcommittee, a motion for adjournment was made by Representative Denham and seconded by Representative Stone, and the meeting was adjourned at 3:10 PM.