Focus Area: Quality of Life
Staff Contact: Mike Sirna, Emily Diehl
Subject: Consideration of the 2026 Alcohol Tax Fund and Opioid Settlement Fund Allocations.
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Consideration of the 2026 Alcohol Tax Fund and Opioid Settlement Fund Allocations.
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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 and Opioid Settlement Funds. Together, these are referred to as Substance Use Continuum of Care Funds (SUF).
Alcohol Tax Funds (ATF)
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)
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. (KSA 75-775 t0 -781).
The City of Olathe, Johnson County, and nine other cities in the county contribute to the SUF through DAC’s competitive grant process. For 2026, jurisdictions collectively committed $3,159,125 ($2,676,125 ATF and $483,000 OSF) to be awarded to agencies and programs as detailed in the 2026 Substance Use Continuum of Care Fund Recommendations Report (Attachment A). Olathe’s approved 2026 contribution is $275,000 ($250,000 ATF and $25,000 OSF).
Funding Priorities
DAC Funding Priorities & Areas of Focus are outlined in Attachment A (pp. 31-32).
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Financial Impact:
Olathe will contribute $275,000 in 2026, $250,000 ATF and $25,000 OSF, leveraging county and multi-city contributions for a total SUF of $3,159,125. Olathe’s 2026 contribution equals its 2025 level.
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Action Needed:
Approval of the 2026 Alcohol Tax Fund and Opioid Settlement Fund Allocations.
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Attachment(s):
A. 2026 Substance Use Continuum of Care Fund Recommendation Report