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Danvers officials say opioid settlement funds are restricted, planning underway; DOR clarified later spending rules

March 05, 2025 | Town of Danvers, Essex County, Massachusetts


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Danvers officials say opioid settlement funds are restricted, planning underway; DOR clarified later spending rules
The town has received opioid-settlement funds tied to statewide settlements and is developing a multiyear plan for how to use the dollars, Town Manager Rodney told the Select Board Monday.

Rodney said the state attorney general’s settlements with distributors and manufacturers result in scheduled payments to municipalities; Danvers is slated to receive a total of $1.5 million through about 2038. "To date, we have received $374,000," Rodney said, adding that health staff have been coordinating with Danvers Public Schools and public safety on spending plans. "These funds do not go away. They're ours to use," he said, but added there are restrictions on eligible uses and the health director is coordinating with the state to define allowable expenditures.

Why it matters: Opioid-settlement dollars may fund prevention, treatment and harm-reduction programs but state guidance and restrictions shape how municipalities may apply the money. Danvers officials said they will prioritize eligible, sustainable programs and coordinate with town health staff, school leaders and public safety.

Details and next steps: The town has set up a segregated fund for opioid settlement revenue. Town staff held preliminary planning meetings with the health director, the public health nurse and school and public safety officials. Staff said the funds can be spent over many years and are not subject to an immediate town-meeting appropriation after recent Department of Revenue clarification; some initial purchases have been made, and the health director plans a fuller presentation to the board this spring. Town Manager Rodney said the town will include counsel and state contacts when confirming allowable uses and will consider partnerships with external organizations for service delivery when direct grants to individuals would be ineligible.

Board direction: The Select Board asked staff to bring a more detailed plan to a future meeting and to include town counsel when clarifying eligible uses with state officials.

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