County officials propose using opioid settlement money to plug juvenile detention shortfall after screenings show near‑universal treatment need

Klamath County finance officials told the board May 27 that the juvenile department faces a substantial revenue shortfall after a planned $750,000 grant was not received this fiscal year. The shortfall currently stands at approximately $577,858 and is expected to reach the original $750,000 figure by fiscal year end.

"This fiscal year the juvenile department had budgeted $750,000 dollars in detention for a grant that we did not receive," a county official told the board, and staff asked for direction on covering the gap. Dan, who presented the memorandum, said the county has collected 14 intake screening forms and that "100% of respondents scored in need of treatment services of some kind, with 12 of 14, 85% scoring in need of treatment services for co‑occurring substance abuse disorder and mental health conditions." He recommended using opioid settlement funds to support assessment, treatment referral programming and warm handoffs to community providers.

Staff explained the design of the assessment and treatment referral effort was consistent with the opioid settlement funds' criteria, noted Tribal health and other community providers have expressed interest in the warm handoff model, and described limitations the county faces in providing Medicaid cards or in‑detention Medicaid enrollment because Oregon Health Authority has not set up distribution into carceral settings. That constraint prevents the county from implementing the larger program previously envisioned (which included hiring personnel to provide in‑facility case management and counseling).

Board members raised possibilities to cover shortfalls: using available opioid settlement funds (the county estimated approximately $500,000 on hand, with parts earmarked), borrowing via a creative interfund loan repaid from future settlement receipts, or exploring use of LADCP/beer and wine tax receipts. Commissioners asked staff to discuss interfund loan options and to consult Jennifer Little (county budget/finance staff) about available balances and committee approvals; staff said they would return with options within a week.

No final borrowing action was approved at the meeting; the board directed staff to return with loan options or fund‑allocation suggestions so the county can maintain juvenile detention operations and continue building referrals to community treatment.