Memorandum
Date: August 25, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director of Behavioral Health Services
Subject: Adopt a Resolution amending Resolution No. 2025-118, as previously amended, to amend the FY 2025-26 Adopted Budget for Fund 141 (Substance Use Disorder), Budget Unit 4015, by increasing Medi-Cal/DMC-ODS revenue by $9,975,000, decreasing Opioid Settlement Fund reserves by $3,573,547.55, and increasing appropriations by $9,975,000 to finalize fiscal year-end obligations
Executive Summary:
As part of the fiscal year-end closing process, Lake County Behavioral Health Services reviewed the remaining appropriations and outstanding obligations in Fund 141 (Substance Use Disorder), Budget Unit 4015. The review identified that additional budget authority is required to process New Life Narcotic Treatment Program activity and other contracted services. The review also identified that the Opioid Settlement Fund reserve must be adjusted to reflect OSF amounts already expended under previously approved or authorized awards and contracts. The related expenditure appropriations were previously increased at midyear.
New Life obligations total approximately $9,033,633.33. New Life is a complete fiscal pass-through for the County: the County receives and transfers the applicable intergovernmental transfer or other non-federal share and receives and remits the corresponding Medi-Cal/DMC-ODS reimbursement. The County does not retain any portion of the revenue associated with New Life activity.
Other obligations charged to account 740.23-80 total approximately $890,000, and approximately $49,000 in appropriation authority remains available. The resulting minimum appropriation increase is approximately $9,874,633.33. To provide limited authority for final valid invoices and year-end adjustments, the Department requests a $9,975,000 increase to account 740.23-80, providing a contingency of approximately $100,366.67 above the currently identified need.
The corresponding $9,975,000 revenue increase is recorded as Medi-Cal/DMC-ODS revenue and is based on actual and anticipated reimbursement associated with New Life pass-through activity and other Fund 141 service obligations. The revenue and appropriation increases balance at $9,975,000.
Separately, the Department requests a $3,573,547.55 reduction to Opioid Settlement Fund reserves to reflect OSF amounts already expended under previously approved or authorized awards and contracts. The related OSF expenditure appropriations were previously increased as part of the midyear budget adjustment; therefore, no additional OSF expenditure appropriation is requested through this amendment.
The proposed amendment therefore increases Medi-Cal/DMC-ODS revenue and appropriations by $9,975,000 and separately decreases Opioid Settlement Fund reserves by $3,573,547.55 to reflect OSF amounts already expended under previously approved or authorized awards and contracts. The New Life appropriation increase and OSF reserve adjustment are separate components of the Fund 141 budget amendment.
The Department expects all related revenue and expenditure activity to fall within the applicable fiscal year-end accrual periods. This budget amendment does not represent an immediate cash need; rather, it provides the budget authority necessary to recognize and process current-year obligations and corresponding revenues through the normal accrual, payment, and reimbursement processes.
The requested adjustment provides budget authority only for existing fiscal year obligations and adjusts the OSF reserve for amounts already expended under awards and contracts previously approved or otherwise authorized by the County. It does not authorize new contracts, services, or Opioid Settlement Fund awards.
No discretionary General Fund contribution is requested. Approval is requested to allow the Department and Auditor-Controller to complete fiscal year-end processing, pay valid pass-through and contract obligations, and accurately align the Opioid Settlement Fund reserve with amounts already expended under previously approved or authorized awards and contracts.
If not budgeted, fill in the blanks below only:
Estimated Cost: $9,975,000 Amount Budgeted: __0__ Additional Requested: $9,975,000 Future Annual Cost: ____0_
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Recommended Action: Adopt a Resolution amending Resolution No. 2025-118, as previously amended, to amend the FY 2025-26 Adopted Budget for Fund 141 (Substance Use Disorder), Budget Unit 4015, by increasing Medi-Cal/DMC-ODS revenue by $9,975,000, decreasing Opioid Settlement Fund reserves by $3,573,547.55, and increasing appropriations by $9,975,000 to finalize fiscal year-end obligations.