Ann Arbor plans to continue using marijuana money to fund social services. City Council unanimously adopted a new city budget Monday night, May 20, after making amendments to put $1 million of the city’s annual tax revenue from marijuana businesses toward various programs to help marginalized people.
That includes $500,000 in continued support for the new Rising Hope for Housing program, an increase from the $400,000 the city put toward it last year.
The program provides various forms of aid to help people disproportionately affected by the criminal legal system and the war on drugs, particularly people of color and low-income people, with a goal of helping people stay housed and reduce recidivism.
“The Rising Hope for Housing program is transforming lives by offering essential, trauma-informed services like mental health counseling, housing advocacy and job training,” said Council Member Cynthia Harrison, D-1st Ward.
Council also voted to put another $250,000 of the city’s marijuana money toward eviction-prevention efforts and $250,000 toward low-income youth services.
The city’s share of Michigan marijuana tax revenue channeled through the state this year amounts to over $1.5 million.
While City Administrator Milton Dohoney left $1 million of it untouched for council to divvy up, he noted his budget plan puts the rest toward various efforts, including new partnerships with the Shelter Association of Washtenaw County and Michigan Medicine, and support for community space programming within a new affordable apartment building the city is building on Catherine Street.
See the top 10 Michigan marijuana tax revenue recipients by city, county
The adopted 2024-25 city budget will take effect with the new fiscal year beginning July 1.
Before council’s amendments, Dohoney had presented an overall budget plan that showed $607 million in revenue and $564 million in spending across all funds, with a $2.8 million use of cash reserves to balance the general fund where expenses were to grow by $9.5 million or 7.6% to over $140 million.
The rising costs include increasing the city’s full-time-equivalent employee count from 829 to 849 with various new positions in parks, planning, building and other departments.
The budget creates two new positions that city leaders have identified as a top priority: an economic development director and coordinator to lead a new economic development office within city hall.
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