Maryland Cannabis Administration outlines $12.1M budget for fiscal 2025

The PST Committee Session held on March 4, 2024, focused on the fiscal year 2025 budget and operational updates from the Maryland Cannabis Administration (MCA) and the Alcohol and Tobacco Commission (ATCC). The meeting began with a review of the operating budget summary, highlighting a proposed increase of $1.2 million, or 11%, bringing the total budget to $12.1 million. This increase is primarily attributed to statewide cost allocations and $900,000 earmarked for developing an online licensing system.

A significant aspect of the budget includes a fund swap of approximately $2.8 million in special funds for reimbursable funds, reflecting a memorandum of understanding for collaborative efforts with the newly established MCA under the Cannabis Reform Act. The budget overview indicated that 63% of the funds, amounting to $7.7 million, is allocated for personnel costs, while 22% ($2.6 million) is designated for contractual services. The remaining budget is divided among rent, utilities, supplies, and other operational costs.

The ATCC reported retaining 22 new positions that were budgeted for fiscal year 2024, despite adjustments made for the formation of the MCA. The vacancy rate stood at 13.3% at the beginning of the year, with eight positions unfilled; however, the ATCC noted several new hires since then.

Key observations from the meeting included the ATCC's success in exceeding inspection goals for licensed tobacco and alcohol retailers. In fiscal year 2023, the ATCC inspected 33% of tobacco retailers and 22% of alcohol retailers, surpassing their targets of 15% and 9%, respectively. This achievement was credited to the addition of 11 new positions in the previous fiscal year.

The increase in inspections also led to a rise in violations. The number of tobacco product confiscations surged by 97% from fiscal year 2022 to 2023, while alcohol violations rose by 96%, reaching a six-year high of 90 violations.

The session concluded with a reaffirmation of the ATCC's commitment to enhancing regulatory oversight and ensuring compliance within the tobacco and alcohol sectors, setting the stage for continued collaboration with the MCA in the upcoming fiscal year.