AMHERST — A plan to provide $2 million over 10 years toward municipal reparations initiatives, such as programs for youth or first-time homebuyers, could be stymied by the anticipated drying up of tax revenue associated with cannabis sales in Amherst as the main source of funding.
Appreciating that getting to the $2 million threshold in a timely fashion could be increasingly challenging, former town councilor Michele Miller and current School Committee member Irv Rhodes, who served on the African Heritage Reparation Assembly, recently appealed to the Finance Committee to find an alternate funding source for reparations.
Miller told finance officials that it’s important for the Town Council and Finance Committee to discuss the matter. “I remain concerned about the cannabis tax being our model, given we’re seeing a decline in that,” Miller said.
Their conversation with the Finance Committee comes after the June 2022 decision by the Town Council to establish the fund, from which up to $100,000 could be drawn annually to address harms perpetrated against residents of African heritage. The Town Council action called for transferring annually up to $205,000 from certified free cash associated with the adult-use marijuana tax.
But so far, over three years, just $476,966 is in the reparations fund from the cannabis tax. While $210,000 was transferred into the fund following fiscal year 2021, that declined to $134,330 in fiscal year 2022 and went down further to $105,537 in fiscal year 2023. Accountant Holly Drake said that $58,000 has come in so far in fiscal year 2024, and the town may not even realize $100,000 from cannabis taxes or less than half of what the Town Council had counted on.
Miller said councilors should think about the original commitment made and opportunities to ensure there is sufficient funding.
“It’s about the spirit of commitment we made,” she said.
While she would like to eventually see a private fund managed outside the scope of town government, Amherst is not there yet, Miller said.
H/T: www.gazettenet.com
