These programs are likely to benefit from Springfield marijuana sales tax

The use of the new tax funds from recreational marijuana sales in Springfield could provide multiple programs in the city with more ongoing funding. Narrowing down which programs and initiatives to prioritize has been no easy feat for City Council.

The additional 3% sales tax on recreational marijuana was approved by voters in August, though the tax only went into effect starting in January. Due to a lag in reporting those funds, the exact dollar amounts this sales tax may bring in for the city remain uncertain. At a Springfield Council meeting last month, the city's Department of Finance estimated that sum could total $2.25 million annually.

The city's projections are based on estimated marijuana sales totaling about $70 million annually in the city. Recreational marijuana products sold within the city limits are taxed at a combined rate of 17.1%, which includes the city sales tax, state recreational marijuana tax and the new 3% tax.

Revenue from the tax is slated for four priorities: housing, mental health services, substance abuse services and public safety. Director of Finance David Holtmann said from the first month of collection the tax has brought in about $80,000, though it is uncertain if this includes all reporting entities.

Narrowing down wishlist for funding

Initial requests from various city departments and Councilwoman Monica Horton included funding options representing each of the four categories. The main asks were funding for a jail diversion program, a coordinator for Crisis Cold Weather shelters, affordable housing operations, gun violence reduction and police technology.

Using the funds to pay for the jail diversion program received the most explicit support from council at its Tuesday meeting. The program deploys a health advocate to interview people in jail and works with them for a six-month period to create a plan, set goals and address their needs. Following the initial program, the participant would be placed on a two-year probation with a plea of guilty. After the two years, the participant would graduate and their charges would be dismissed, relieving them of the social stigma a criminal conviction can bring.

The program previously ran from 2021 up until September 2023, when it was no longer funded. Chief municipal judge Wendy Garrison said from January to September in 2023, the court referred 25 people who were accepted into the program, 19 of whom have been and continue to be successful.

Because of this success rate, council members felt strongly that supporting the program, one that would cost approximately $360,000, should be funded by the tax moving forward. This money would pay for two full-time health advocates and one part-time supervisor position, as well as other supplies and services necessary for the program through the Springfield-Greene County Health Department, and probation services through the municipal court. Director of Health Katie Towns said this funding is set to serve about 100 people per year.

While the Community Involvement Committee recommended the jail diversion program be funded in the next budget year that runs July to June, City Manager Jason Gage said council could consider any funding that would allow the program to restart sooner, which could include sales revenue currently being collected through the tax.

With the health department being funded both by the city and Greene County, Councilman Craig Hosmer said the city should encourage the county to introduce its own sales tax on recreational marijuana to double the resources available for the jail diversion program and the like. However, Holtmann said it is still not legally clear whether the city tax and a potential county sales tax could be stacked, resulting in the county holding back for now.

The police department had submitted a request for a $150,000 virtual crime center that would give officers real-time crime information and remote access to video cameras from entities that would sign on, such as schools and hospitals. City Manager Jason Gage said the cloud-based application had been a part of past years' budget requests but had not made the cut.

More information, discussion necessary

Besides the police application and the jail diversion program, other suggested items were not discussed in detail at Tuesday's meeting. While the suggestions included a one-time funding request to support immediate needs for the Community Partnership of the Ozarks' Gun Safety and Violence Collaborative, Mayor Ken McClure said more information regarding these needs and the collaborative's efforts will be presented next week.

While the specifics of housing funding were not discussed beyond funding Affordable Housing Action Board's operations, Councilman Brandon Jenson said he'd like to see a large portion of the marijuana sales tax set aside for housing generally.

"We provide no local funding of any recognizable amount towards housing, and this is an opportunity to fund housing at a significant level," he said.

More: City marijuana tax expected to generate $2 million+ a year. Where should the money go?

With housing still up in the air as a stand-alone council priority, Jenson said he hopes council can develop a more specific plan for the funds through the conversations that come out of the priority discussion. While initially the housing priority was going to be revisited in a full-council retreat in April, the topic was referred to the Community Involvement Committee on Monday night.

The discussion on the marijuana sales tax funds will be revisited as more concrete information on exact revenues the tax brings in become available.

Marta Mieze covers local government at the News-Leader. Have feedback, tips or story ideas? Contact her at mmieze@news-leader.com.

This article originally appeared on Springfield News-Leader: Springfield's marijuana sales tax could restart jail diversion program