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Supervisors debate using cannabis business tax to fund department operations, agree to track spending
Summary
Board grappled April 22 over how to honor advisory Measure AJ and spend cannabis business tax (Measure AI). After extensive public comment and internal debate, staff will track and report cannabis tax allocations and the board signaled support for covering the Mendocino Cannabis Department’s operating costs from cannabis tax revenue for now.
MENDOCINO COUNTY, Calif. — The Board of Supervisors debated at length April 22 how to interpret voter guidance on spending the county’s cannabis business tax (Measure AI) and whether tax proceeds should primarily fund cannabis regulation enforcement, mental health, road repair and fire services—the four priorities included in advisory Measure AJ.
During a sometimes pointed discussion, supervisors and members of the public said they were concerned about the county’s historical practice of routing cannabis tax receipts to the general fund without transparent tracking tied to the advisory language. Supervisor Ted Williams argued for stricter adherence to voter intent: “When I read the language… the takeaway is at least 50% needs to go for those four categories,” he said, adding that any program operations that mostly benefit licensed businesses should be financed by fees rather than tax revenue.
Deputy CEO Tony Ricks and others briefed the board on the cannabis revenue outlook: the current fiscal year projection is about $1 million. Mendocino Cannabis Department staff described the department’s work processing and inspecting cultivation licenses, doing site inspections and random compliance checks; they reported a slim staff of three full‑time planners, a program administrator and administrative support.
Several supervisors and public commenters suggested the county should formalize how cannabis tax revenues are allocated and tracked. After public testimony from environmental and industry voices, the board agreed that, given current fiscal constraints, using cannabis tax revenue to fund the Mendocino Cannabis Department’s operations is acceptable for now, provided staff return with clearer tracking and a proposal that documents how allocations align with Measure AJ priorities.
Why it matters: The decision affects how a dedicated local tax will be used—either for clearly labeled voter priorities such as roads and mental health or to sustain county regulatory operations that oversee legal cannabis businesses.
What’s next: Staff will produce a tracking report showing cannabis tax inflows and outflows and a proposal for how to align future allocations with voter guidance; supervisors also discussed options for setting aside future growth to the four priority categories.
