Cincinnati officials plan to spend cannabis sales tax revenue on a series of programs aimed at building wealth and creating opportunity for low-income residents.
The city expects to receive about $1.8 million next fiscal year. City Council's Budget Committee voted 8-1 Monday on a motion that outlines how the city will spend it.
Council previously moved to restrict the revenue to be used to support communities most affected when cannabis was still illegal in Ohio.
A restricted fund will be set up as a partnership with the nonprofit Grater Cincinnati Foundation (GCF). Council member Mark Jeffreys says the goal is to break the cycle of poverty.
"Yes, we invest a little bit here and there in some of these [programs], but this is consistent investment," Jeffreys said. "And yes, if we set it up as a GCF restricted fund, we can also get other private matching dollars, and so that's how we'll make this go a lot farther."
The exact definition of "communities most impacted" is not yet determined; Council asked city administration to consider that question. The motion passed this week outlines the specific uses for the fund:
- 25% to a home repair fund
- 20% to a new home ownership fund
- 25% to addressing childhood lead paint poisoning
- 15% to child savings accounts
- 15% to Youth to Work (youth jobs)
The child savings account program is an existing city pilot project that hasn't fully expended current resources. Council member Anna Albi supported the motion, but indicated she'd like to keep a close eye on outcomes.
"My understanding is there are dollars in some of these programs today that have not gotten out the door, and so I think it is our job as the overseeing body to make sure that we hold our administration accountable, and whatever partners are needed, to make sure that these dollars are being spent," Albi said.
Jeffreys says the programs would be required to regularly report back on progress.
The motion is expected to get a final Council vote Wednesday.
The city received about $1.6 million in cannabis tax revenue in fiscal year 2027, the current budget year. The revenue was added to the city's General Fund and used to fund some of Mayor Aftab Pureval's budget priorities.
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