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Deputy finance director outlines state-shared revenue trends and their effect on Springfield’s FY27 budget
Summary
Deputy Finance Director Jessica Mummy told the budget committee that state-shared revenue formulas, legislative changes and large statewide projects are shaping Springfield’s FY27 revenue outlook; she said the proposed budget assumes no additional revenue from pending statewide measures and highlighted risks to liquor and marijuana-derived shares.
Deputy Finance Director Jessica Mummy presented an overview of state-shared revenue and how those streams affect Springfield’s proposed fiscal year 2027 budget.
Mummy described multiple revenue sources: the State Highway Trust Fund (supported by state gas tax and registration fees), liquor apportionment (34% city share split into 20% per-capita and 14% formula-based), the statewide marijuana tax distributions, and cigarette taxes. She explained that some recent statewide proposals were scaled back or referred to voters and that the city’s proposed budget does not assume additional receipts from the pending May ballot measure. "We are staying flat," she said, referring to the budget assumption if the statewide transportation revenue measure does not pass.
On liquor revenues, Mummy said statewide bond-financed projects — citing a large OLCC warehouse whose cost grew substantially — reduce gross liquor revenues that fund city apportionments. On marijuana revenues, she outlined the drop after November 2020’s Measure 110 and subsequent allocation changes, noting a roughly 74% decline in quarterly receipts to cities beginning March 2021. She clarified that Springfield’s local 3% marijuana sales tax (a local ordinance passed by voters in 2016) is separate from the state apportionment and is included in the city’s proposed revenues for public safety.
Why it matters: State-shared revenues are a material input to the city’s general fund and street fund; changes at the state level, bond payments on statewide projects, and market trends can materially reduce amounts available to cities.
What staff recommended: Continue monitoring legislative activity and present supplemental budget options if state revenue changes materialize. Staff also offered to provide a 10-year trend analysis for city-specific marijuana receipts on request.
The presentation closed to questions; committee members pressed staff on the assumptions used in projections and whether the FY27 forecast assumed passage of statewide measures, to which staff said no.
The committee moved on to discussion of reserves, payroll-tax options, and service-level impacts.
