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Appropriations panel hears plan to add roughly $1 million to statewide substance misuse prevention from cannabis tax revenues
Summary
The Department of Health told the Senate Appropriations Committee it seeks to increase funding for substance misuse prevention after a larger-than-expected year-end transfer into the cannabis regulation fund and described statutory requirements tying 30% of that fund to prevention activities.
The Vermont Department of Health asked the Senate Appropriations Committee on Jan. 21 to increase the substance misuse prevention appropriation by about $1 million, drawing on the statutory allocation of cannabis tax revenue for prevention activities.
"Under the current law, 30% of the year end balance in the cannabis regulation fund is allocated for substance misuse prevention activities," Commissioner Mark Levine said. He told the committee that the fiscal 2024 transfer exceeded estimates and that the 30% share of that larger balance totaled $4,025,125, above the $3,000,000 included in the fiscal 2025 budget.
Levine said the department intends to use the additional funds to expand evidence-based, statewide prevention strategies — including school and community-level programs, education, positive alternatives, policy changes, community supports, and early identification and referral to services.
Committee members and staff discussed the mechanics of the funding. The presentation noted that beginning July 1, 2025, the cannabis excise tax will be deposited into the general fund under recent legislative changes, though the statutory requirement to earmark 30% for substance misuse programming will remain. Levine also said the law caps the dedicated prevention funding at $10 million.
The department described the decision as scaling up programs that have been in place rather than launching new strategies. No formal committee vote or final appropriation action is recorded in the transcript.
