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Finance committee approves $50,000 from cannabis stabilization fund for legal services; fund balance cited at $2.66 million
Summary
Holyoke's finance panel approved a $50,000 transfer from the cannabis stabilization fund to pay solicitor legal services (KP Law and Blue Sky Consulting) for ongoing cannabis‑related legal work. Officials said the fund holds about $2.66 million; councilors urged public education on revenue sources.
The Holyoke City Finance Committee on Feb. 25 approved transfer of $50,000 from the cannabis stabilization fund to pay for solicitor legal services related to cannabis oversight and litigation.
City Solicitor Mike Besnet said KP Law has been advising the city since 2024 and that the transfer will cover legal work and consulting from KP Law and Blue Sky Consulting. "KP had been advising the city since 2024," Besnet said. He and other staff explained the transfer will be paid from a tracking entity established within the cannabis stabilization fund to pay legal costs tied to licensing, community impact fees and litigation.
Committee members asked how much remains in the stabilization account; administration reported about $2.66 million. Councilor McGrath Smith said that part of the public confusion comes from conflating past "impact fees" with ongoing excise tax receipts and recommended the city invest in public education about revenue sources. Besnet and Mayor Garcia warned that falling retail prices for cannabis have reduced excise tax collections and that some previous impact‑fee approaches are no longer available, increasing the need for careful fiscal management.
The committee moved the transfer forward; the item will be executed consistent with solicitor office guidance and then brought before the full City Council for final action.
