Tuesday, June 29, 2021

Santa Cruz residents to decide fate of cannabis tax dollars – Santa Cruz Sentinel

SANTA CRUZ – Santa Cruz City Council passed a resolution last week that could pump extra money from the city’s cannabis tax into early childhood development programs.

Currently, based on a council directive dated April 2019, the city is allocating 12.5% ​​of the money it receives from cannabis tax to similar programs. The new resolution proposes increasing the allocation from the tax to 20%, with the final decision in the hands of Santa Cruz voters. The measure is due to appear on the ballot on November 2nd.

“The increase to 20% will better serve the families and communities in need,” said Councilor Martine Watkins. “This is one of the things I was really proud of to contribute to our city and I’m really excited about the potential. No matter what, despite the city’s many budget requirements, there will be a nominal investment in the needs of the children. “

Watkins campaigned for the original ordinance to allocate a portion of tax revenue to a children’s fund. However, she recognized that as the councils change, so will their ideals. Therefore, together with Council members Renee Golder and Shebreh Kalantari-Johnson, she supported the vote to propose a permanent source of funding for child development.

A policy chosen by the public in the Charter has a more solid basis than a Council regulation, which can only be repealed by another regulation. In this way, the fate of the funding is in control of the public.

“Its democracy at its finest,” said Watkins. “You let the voters weigh that priority.”

Such legislation is the first of its kind, according to Margaret Brodkin, founder of Funding the Next Generation. Other jurisdictions have allocated taxpayer money to funds for childcare improvement and early childhood development, but Santa Cruz could lead the way in using cannabis revenues to achieve this goal be.

Other California cities have tried in the past but have failed due to state-level tax restriction laws. When taxes are passed, they must receive a two-thirds majority of local voters. The city of Sacramento tried a similar bill in 2016, according to Brodkin, but narrowly missed the target.

However, the resolution that Santa Cruz voters are facing has a better chance of being passed, and not just because of Santa Cruz’s progressive policies. The tax on cannabis companies already exists. The vote is simply an increased allocation of the money to child development services. Therefore, it does not need a two-thirds majority, only a majority.

“(Watkins) turning this into a constitutional amendment requiring 20% ​​of the fund to go to a Santa Cruz Children and Youth Fund is a real model for people across the state,” said Brodkin, “both in terms of anchoring of cannabis funding in the charter and see cannabis revenue as a way to fund children’s services. “

If voters approve the increased allotment, the dedicated children’s fund could see an estimated increase of $ 127,500 in the following fiscal year, according to the employee report. This could bring the fund’s total annual amount to around 340,000.

While there is no telling what specific programs or events the money will fund, it will have a big impact on children in the city and across the county. Allocations for specific programs would be at the council’s discretion each year, said David Brody, executive director of First 5.

Children’s fund investments can take many forms. Tax revenue can be used as grants for summer and afternoon programs or to promote childcare. Low public interest leads to low wages for child carers. This, in turn, leads to a lack of availability for childcare programs, Brody said.

A needs assessment by the Santa Cruz County Office of Education for the 2014-2021 period found that the county’s average childcare cost was approximately $ 2,000 more per year than the California average. It also found that available childcare across the county failed to support 30% of children aged 6 years or younger.

In addition, 45% of the children in the district lived in households that were qualified for subsidized childcare. However, according to the report, there was a risk that they would not be served due to insufficient space available.

“We want a system that cares for all children but understands the importance of investing fairly,” said Brody. “In the city of Santa Cruz we know that this challenge exists.”

Regardless of how the money goes to child development programs across the city, Brody emphasized the importance of communities investing in early childhood development. Children participating in development programs have seen tremendous improvements in various aspects of their lives, from school grades to arrest rates, he noted.

Home calling programs like the Nurse-Family Partnership in Santa Cruz are a prime example and another potential landing zone for funding. They have shown a 48% reduction in child abuse and a 56% reduction in accidents and poisoning, according to Brody. They have also shown a 59% reduction in arrests of children aged 15 and over and a 67% reduction in behavioral and intellectual problems aged 6.

“These are just a few examples of the huge impact you have on families,” said the director of First 5 – the nonprofit that aims to help children thrive in school and in life. “That’s the kind of impact we’re aiming for here in our collective investments.”

Allocating taxpayers’ money to a children’s fund does more than just benefit underserved children. The benefits will take some pressure off the local taxpayer, noted Brody. According to a study by Professor James Heckman at the University of Chicago, early childhood development programs achieved a return on investment of 13% per child.

The study found that programs for disadvantaged children improved their employment, educational, health and social outcomes. This, in turn, has an impact on tax distribution in the long run, as less is needed to support the health and employment of citizens.

“If people are thinking about shaping our community to build healthy people, that’s where we start,” said Councilor Watkins. “Having these investments now will pay off later in the long term.”



source https://dailyhealthynews.ca/santa-cruz-residents-to-decide-fate-of-cannabis-tax-dollars-santa-cruz-sentinel/

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