Focus Area: Economy
Staff Contact: Lucas Mellinger/Emily Diehl
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title:
title
Report on the 2027 Alcohol Tax Fund and Opioid Settlement Fund Allocations.
Body
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recommended motion:
Accept report.
Consideration and approval for the 2027 Alcohol Tax Fund and Opioid Settlement Fund Allocations will appear on the December 1, 2026 Council Agenda.
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Summary:
Background
The Drug and Alcoholism Council of Johnson County (DAC), a project of United Community Services (UCS), advises the City of Olathe on the allocation of Alcohol Tax Funds (ATF) and Opioid Settlement Funds (OSF). Together, these are referred to as Substance Use Continuum of Care Funds (SUF).
Alcohol Tax Funds
ATF are derived from state excise tax on liquor sold by the drink. By statute, one-third of the city's ATF must support programs "whose principal purpose is alcoholism and drug abuse prevention and treatment of persons who are alcoholics or drug abusers or are in danger of becoming alcoholics or drug abusers" (City of Olathe CO 69/K.S.A. 79-41a04).
Opioid Settlement Funds
OSF are pass-through dollars from national opioid settlements. State statutes and settlement agreements limit OSF to projects that prevent, reduce, treat, or mitigate substance use and require reporting to the State (K.S.A. 75-775 to -781).
2027 Recommendations
Johnson County Government and ten cities, including Olathe, have committed $3,247,294 for 2027 ($2,762,294 ATF and $485,000 OSF), an increase of $88,169 from 2026. Olathe's contribution is $275,000 ($250,000 ATF and $25,000 OSF), unchanged from 2026.
DAC received 24 applications requesting $3,636,779 and recommends grants to 23 grantees totaling $3,183,694, plus $211,600 for UCS administration. The $3,395,294 in total allocations includes $148,000 in unspent 2025 and 2026 funds returned to the pool ($73,000 ATF and $75,000 OSF).
Olathe's funds are distributed among 21 grantees and UCS administration ($17,920, approximately 6.5 percent, prorated among jurisdictions). The distribution includes $6,412 in carryover from unspent funds of a 2026 grantee ($5,091 ATF and $1,321 OSF).
The City has ultimate authority and responsibility for allocating its portion of ATF and OSF. DAC asks the City to confirm its acceptance of the recommendations. Awards are maximums and depend on revenues received; distributions may change if Kansas tax policy or statutes change.
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Financial Information:
Olathe will contribute $275,000 in 2027, $250,000 ATF and $25,000 OSF, leveraging county and multi-city contributions for a total SUF of $3,247,294. Olathe’s 2027 contribution equals its 2026 level.
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Attachment(s):
A. 2027 Substance Use Continuum of Care Fund Recommendation Report.
B. Olathe 2027 ATF and OSF Distributions.