Assembly hears mixed progress on alcohol‑tax programs; member previews solid‑waste tipping fee to fund Healthy Spaces

Assembly members on Aug. 21 pressed the Office of Management and Budget about the status of multiple programs funded by the municipal alcohol tax, including reappropriated grants that show little or no spending in the July budget‑to‑actuals report.

OMB told the Assembly that many alcohol‑tax line items are grants or pass‑throughs that can show 100% when dispersed; however, some items remain at 0% in the ledger because grant paperwork or disbursement timing delayed execution. OMB said it will check with the health department on two specific line items — the ACH Next Step program and the In Our Backyard program — that report 0% despite being appropriated and reappropriated for 2025.

Why it matters: The alcohol‑tax fund pays for programs such as outreach, shelter and public‑health services. Underspent or reappropriated funds affect program delivery and whether the assembly must reallocate dollars during year‑end budget adjustments.

Specific items and comments from the meeting:
- Healthy Spaces / Parks & Rec: OMB said the $491,000 line for “In Our Backyard” was a start‑up grant; the appropriation paid initial startup costs and the organization must expend funds within the calendar year. OMB explained that temporary contract workers were used while full‑time hires were on a lag, and those contracts were intended to be short term.
- Best Beginnings: The assembly asked why a Best Beginnings line item shows 0% spent. OMB said the matter is under review; some members recalled earlier intentions to use that grant for Imagination Library expansion but could not confirm whether it was originally intended as a one‑time or recurring appropriation.
- Mobile Crisis Team (MCT): MCT funding was at about 11% spent. OMB said the line can be used to backfill shelter operating costs if needed and that the administration is watching MCT and shelter contract spending closely; any needed reappropriation would be brought to the assembly.

Assembly member Christopher Constant previewed an alternative revenue idea to support cleanup and Healthy Spaces operations: “I am chewing on and drafting up right now a proposal to create a solid waste services refuse utility fee, tipping fee ... that we would direct to Healthy Spaces, cleanup of our parks, management of waste in the streets,” he said. Constant said the fee would mirror the existing recycling fee and could create a stable revenue stream that decreases reliance on one‑time alcohol‑tax appropriations.

Policy note: Committee members also discussed legal limits for use of the alcohol tax. The chair noted the tax “can't be used to backfill things that as of ... fiscal year 2020, were already in the general government budget.” OMB said it would check the mayor’s office and library on the status of the education/outreach line that moved between the mayor’s office and the assembly.

Next steps: OMB will consult the health department and mayor’s office to report back on the precise status of the reappropriated grants and on whether lines such as Best Beginnings are one‑time or recurring. Assembly members signaled interest in a follow‑up conversation if the administration proposes structural revenue changes such as a tipping fee.

All program percentages and descriptions above come from OMB’s Aug. 21 presentation and assembly remarks during the committee meeting.