SOUTH LAKE TAHOE, Calif. – City council deliberated on what to do with the previous funding source that came from taxing cannabis businesses, which funded organizations like the Tahoe Alliance for Safe Kids (TASK) and Tahoe Youth and Family Services’ prevention programs. Mayor Cody Bass recused himself from the item.
Council had previously cut the tax rate on cannabis businesses to 3% in November. Even cannabis business owners like Cannablue CEO Jess Carlson acknowledged that the work of these nonprofits was supported by the tax.
The revenue from it was originally set to benefit nonprofits that mitigate the negative effects of cannabis, as well as pay for a dedicated officer overseeing regulatory compliance for the cannabis businesses.
City staff member Sara Letton presented on the potential motions to be made, especially as a remaining balance of $400,000 from the previous fiscal year could still be utilized as grants for the nonprofits.
Letton outlined that they could implement the program for another year with the remaining funds, then discontinue it; continue the program under reduced funding; or eliminate the program. Through elimination of the program, they could add the funds to the general fund, consider a broader grant program or consider the item at a future budget meeting.
At the request of councilmember Scott Robbins, Chief Jeff Roberson outlined the duties and activities of the cannabis overseeing officer: permitting, inspections of businesses, background checks on employees and security system access. “We have been able to use that information to solve crimes,” said Roberson.
Representatives from Tahoe Youth and Family Services, Mountain High Recovery Center, Tahoe Coalition for the Homeless and TASK emphasized the importance of the funding and urged the city to provide it, especially as it helps them secure other funding sources.
Other public comments were in support of the city continuing to provide some kind of funding for the nonprofits, with comments that the criteria could be expanded beyond just the mitigation of negative effects from cannabis.
Councilmembers Robbins and Heather Horgan were in support of the city providing financial support, especially because federal and state funding sources have dried up. Horgan emphasized the importance of prevention of substance abuse and its connection to the need for more mental health services, which Barton Hospital’s community needs assessment consistently identifies as a need.
Councilmember David Jinkens and Mayor Pro Tem Keith Roberts were also interested in continuing support and implementing metrics to measure the impacts. Jinkens was interested in the city taking responsibility for where the grants go.
The council eventually moved to fund the program this year at $400,000 and directed staff to find a long-term funding approach for the program. They also moved to form an ad hoc subcommittee consisting of Horgan and Robbins which would evaluate funding for future years in alignment with city priorities.
