Council accepts auditor—indings: $23.35 million audited cannabis tax; $22.9 million baseline verified for Sacramento Children—und

The City Council on Tuesday unanimously approved two reports from the City Auditor that together determine how much money the city must dedicate to youth services under Measure L.

The auditor reported that audited cannabis business operations tax (CBOT) revenue for fiscal year 2023-24 was $23,351,809, and the finance department completed a year-end true-up that increased the transfer into the Sacramento Children—s Fund to about $9,300,000. Separately, the auditor verified a baseline funding amount of $22,900,000 that the city must maintain in general-fund and Measure U spending for youth services; the auditor found the city met that baseline for FY2023-24.

Why it matters: Measure L (the Sacramento Children and Youth Health and Safety Act) requires the auditor to publish an audited CBOT amount each year and to calculate and verify a baseline level of youth spending. Forty percent of the audited CBOT is allocated to the Children—s Fund; the baseline verification covers general-fund and Measure U expenditures that the charter says must not fall below the FY2023-24 level going forward.

Audit findings and the money flow The audited CBOT amount was prepared by the Office of the City Auditor and completed with the city's external auditors in accordance with generally accepted auditing standards. The auditor reported that the city originally estimated roughly $22 million in CBOT receipts for FY2023-24; 40% of that estimate ($~8.8 million) was budgeted to the Children—s…