Staff photo / R. Michael Semple Struthers Mayor Catherine Cercone Miller, at podium, speaks about the potential loss of funding from recreational marijuana sales as, from left, Girard Mayor Mark Zuppo, Niles Mayor Steve Mientkiewicz, State Rep. Tex Fischer, R-Boardman, and State Rep. Lauren McNally, D-Youngstown, listen at a news conference Friday in Austintown.

AUSTINTOWN — State and local officials representing Mahoning, Trumbull and Columbiana counties have come together to urge the state to provide funds originally promised to them from the sale of recreational marijuana at dispensaries.

A one-hour news conference with 15 area officials took place Friday afternoon at the Austintown Township Administration Building.

Austintown Trustee Robert Santos said communities are concerned that the funding originally promised to municipalities and townships from the dispensaries is proposed to be reduced by state legislation. The recreational marijuana ballot measure passed by voters in November 2023 directs 36% of the 10% marijuana sales tax to communities that host adult-use dispensaries.

“This shows the unity we all have on this issue. When residents statewide voted on recreational marijuana, part of that ballot language specified that the hosting communities were to receive 3.6% of the revenue. That is of vital importance to our communities because of inflation occurring now,” Santos said.

He said townships are funded by property taxes, which do not increase even if there is inflation. Santos said the funding from the dispensaries will help offset costs.

“The voters voted on this, and now the legislators are looking to change that. We as leaders are keeping on top of the changes and are asking for what was promised to us and what our voters went out and voted for. The state needs to put it back the way the voters voted on and give us these funds. This was money promised to us,” Santos said.

He said this is nothing more than “a blatant money grab.”

He said two bills are pending: Senate Bill 56, which has host communities receiving 2.5% of the sales tax over seven years, and House Bill 160, which proposes 20% over five years.

Santos said Austintown is the 12th largest township out of 1,300 statewide and Boardman is the 10th largest. The two combined contain approximately 75,000 people.

“The fight is not over. We will fight for that funding for our communities, which is much needed,” Santos said.

OTHER OFFICIALS

Girard Mayor Mark Zuppo said officials worked hard for a year with dispensary companies from all over the country calling local officials about locating here.

“The issue is now how to disperse the tax money. The voters voted on that tax money staying in that municipality. Those dispensaries bring in more money than a factory with 500 jobs. It is amazing the amount of revenue the dispensaries bring in. I think once they saw how much revenue was involved, then they (state officials) started changing their tune. I think with us joining together, the statehouse is starting to listen to us,” Zuppo said.

Struthers Mayor Catherine Cercone Miller said what the state is trying to do is “simply unfair.”

“We are united today raising our voices and strong opposition to recent changes on the distribution of cannabis dispensary tax revenue. When the legislation was first proposed, we were assured a fair portion of the tax income would be returned to our communities where the dispensaries are operating and the impact felt most directly. That was the agreement. The state is now attempting to keep revenue for itself. It is a betrayal of the original intent. We feel we were misled. The cities, townships, and villages that came to the table in good faith are now being left behind. We are asking the state lawmakers to honor their commitment to restore the original share of our tax revenue to our local government, ” she said.

Niles Mayor Steve Mientkiewicz said his city has a dispensary, as does Warren and Hubbard.

“We all have the same message that we were sold a bill of goods that is not coming to fruition. Having a cannabis dispensary, we were to see future revenue streams for the city. The projections in Niles were $500,000 per year reimbursement back to the city, which could have grown year after year depending on the sales,” Mientkiewicz said.

He said this revenue stream will help the city with roads, parks and stabilizing safety forces.

“The state has pulled the rug out from underneath us. This revenue fund would have helped stabilize our community for years to come,” he said.

Warren Mayor Doug Franklin said the united front speaks for itself.

“We are not alone in this fight. There are communities across the state coming together because of the unfairness. This is nothing more than a shoddy attempt to undermine the will of the voters. It is a travesty. We can’t sit by and let this happen,” Franklin said.

Mahoning County Commissioner Geno DiFabio said the three commissioners agreed the money needs to go back to the communities

“As county commissioners, we see the needs of the townships and try to help out wherever we can. Here is an opportunity for these townships to generate money. We are all totally against what the state wants to do. We wish they would put it back the way they promised it and the way people voted for it,” DiFabio said.

He said all the communities coming together on this issue is how they all should work together on everything, such as economic development.

Rep. Tex Fischer, R-Boardman, said the money from the dispensaries means a lot at the local level.

“I totally support restoring these funds and will continue fighting on this issue in the state budget. We will help communities get what the voters intended,” Fischer said.

Being proposed is either offering 20% over five years or 25% over seven years to the communities where dispensaries are located. It originally was supposed to be 6% indefinitely.

Rep. Lauren McNally, D-Youngstown, said less and less state funds have been coming to communities, and those funds are generally used for economic development.

“Those in Columbus are trying to override the will of the people and rewrite what they voted for,” McNally said.

Marijuana dispensaries are located in Struthers, Niles, Hubbard, Warren and Youngstown, with others coming soon to Austintown and Girard.