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Health Department seeks to add roughly $1 million from cannabis fund to prevention programs
Summary
The department told appropriators that a larger-than-expected year-end transfer to the Cannabis Regulation Fund raised the 30% earmark for substance misuse prevention to $4,025,125, up from the $3 million included in the FY25 budget; the department plans to obligate the extra funds through grants and may carry payments into FY26.
The Vermont Department of Health told the Appropriations Committee the fiscal 2024 year-end transfer to the Cannabis Regulation Fund exceeded estimates, raising the 30% earmark for substance misuse prevention to $4,025,125. When the fiscal 2025 budget was passed, that earmark had been set at $3,000,000; the department said the difference would support expansion of statewide, evidence-based substance misuse prevention programming.
Commissioner Mark Levine explained: "When the fiscal year 2025 budget was passed, it included $3,000,000 in the substance use appropriation for this purpose. The fiscal 2024 year end transfer was greater than estimated, and the 30% earmarked for substance misuse programs totaled $4,025,125." He said the additional funding will be used to scale up school- and community-level prevention strategies and to sustain programs at a statewide level.
Paul Daley said the department expects to obligate the funds through grant awards and noted that many grants operate on a reimbursement basis: "We would expect that some of the payments for the new awards would be made after the end of fiscal year 25 and the funds would be carried forward into 26 for that purpose. But we do expect to be able to commit all the funds, within as soon as we get action from legislature." Committee members asked whether the additional money would be spent within the remaining months of fiscal 2025; staff said grants can be awarded and obligations made quickly but some payments will occur after year end.
Levine framed the funding as an opportunity to expand "long term statewide school and community level evidence based strategies" that include education, alternatives, policy changes, community support, and early identification with referrals. He noted that starting in fiscal year 2026, statute directs 30% of cannabis excise tax revenue to substance misuse prevention programming up to $10 million annually, and the department has plans to scale programs as revenue allows. There was discussion of program evaluation and whether prevention messaging is reaching youth on social media; the department said programs include both messaging and community- and school-based services.
