Title
Receive a report and recommendations from the County Administrative Officer regarding proposed FY 2023-24 reductions for the Monterey County Cannabis Program (Program) due to declines in available cannabis tax revenue; and, provide direction to incorporate Program reductions into the FY 2023-24 Recommended Budget (REVISED VIA SUPPLEMENTAL)
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Receive a report and recommendations from the County Administrative Officer regarding proposed FY 2023-24 reductions for the Monterey County Cannabis Program (Program) due to declines in available cannabis tax revenue; and
b. Provide direction to incorporate Program reductions into the FY 2023-24 Recommended Budget.
DISCUSSION/SUMMARY:
In November 2016, voters in the County of Monterey approved a tax on commercial cannabis production and retail sales in the unincorporated area. The tax is a "general tax" which may be used for "general county purposes" at the discretion of the Board of Supervisors (Board).
Since 2016, the Board has allocated annual funding to cover the cost of the County Cannabis Program (Program) in the areas of public health, permitting, regulatory compliance and enforcement aspects as related to the local cannabis industry (industry) while also allocating significant cannabis general tax revenue annually to fund a variety of needs identified by the Board and the public in a series of workshops held in 2018 and at various budget workshops over the past several years. To date, the County has collected approximately $82 million in revenue with approximate gross proceeds of $589 million by the industry. Commensurate with the rapid growth of the local industry, staff allocated to the Program, funded by the revenue, has grown from 3.0 FTEs in FY 16-17 to a peak of 25.23 in FY 22-23. Below is a brief synopsis of the revenue, staffing and funding levels of the Program since voter approval in 2016. County departments/offices which a...
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