Medical marijuana tax revenues set to help food insecurity in Arkansas


Act 657 will help eliminate lunch debts for public schools across Arkansas, according to Scott Hardin, with the AR Department of Finance and Administration.The new law passed by legislators in the 2023 Legislative Session redirects medical marijuana sales tax revenues to help with food insecurity and health needs.”What that means is elimination of school lunch debt. And then the legislature, Arkansas Legislative Council, can also expand that to address some other needs across the state. But ultimately when it was discussed, it was eliminating school lunch debt,” Hardin said.In total, medical marijuana sales have generated $105 million in tax revenues for the state, according to Hardin.”In any given day, Arkansans are spending somewhere between $750,000 – $800,000 to purchase medical marijuana,” he said.Act 657 redirected tax revenues for the University of Arkansas for Medical Sciences National Cancer Institute to help address food insecurity in the state. Harding told 40/29 News that UAMS will still receive funding but from a different source.”Fort Smith alone now has an outstanding balance of negative school meals of over $250,000,” said Charles Warren, CFO for the Fort Smith Public School District. “Every dollar that we don’t collect from a full-pay student is $1 that we’re going to have to take from some other resource that could be provided for that same student in the classroom.”Warren told 40/29 News that breakfast and lunch was free for students for two years during the pandemic, but free lunches ended last year. That’s when the school district saw the biggest increase in school lunch debts.”A lot of parents got used to not filling out that free and reduced (meal) application,” Warren said. “They don’t qualify automatically. They have to fill out the paperwork to prove that they qualify each and every school year.”Medical marijuana tax revenues generated $25 million for UAMS during the previous year. Hardin said sales are expected to increase this year, generating more revenue to help school districts with school lunch debts.The funds are dispersed at the end of the fiscal year on June 30. “You would probably be surprised to learn how much school lunch debt that there is in the state,” Hardin said. “This is really probably the best year that we’ve ever had in the state for just students’ access to school lunches.”Act 656 is another new law that directs the state to cover the cost of reduced-priced meals for students.In Arkansas, students who qualify will now get reduced-priced meals for free.The AR Department of Education estimates the total cost to reimburse school districts will be approximately $6 million.

Act 657 will help eliminate lunch debts for public schools across Arkansas, according to Scott Hardin, with the AR Department of Finance and Administration.

The new law passed by legislators in the 2023 Legislative Session redirects medical marijuana sales tax revenues to help with food insecurity and health needs.

“What that means is elimination of school lunch debt. And then the legislature, Arkansas Legislative Council, can also expand that to address some other needs across the state. But ultimately when it was discussed, it was eliminating school lunch debt,” Hardin said.

In total, medical marijuana sales have generated $105 million in tax revenues for the state, according to Hardin.

“In any given day, Arkansans are spending somewhere between $750,000 – $800,000 to purchase medical marijuana,” he said.

Act 657 redirected tax revenues for the University of Arkansas for Medical Sciences National Cancer Institute to help address food insecurity in the state. Harding told 40/29 News that UAMS will still receive funding but from a different source.

“Fort Smith alone now has an outstanding balance of negative school meals of over $250,000,” said Charles Warren, CFO for the Fort Smith Public School District. “Every dollar that we don’t collect from a full-pay student is $1 that we’re going to have to take from some other resource that could be provided for that same student in the classroom.”

Warren told 40/29 News that breakfast and lunch was free for students for two years during the pandemic, but free lunches ended last year. That’s when the school district saw the biggest increase in school lunch debts.

“A lot of parents got used to not filling out that free and reduced (meal) application,” Warren said. “They don’t qualify automatically. They have to fill out the paperwork to prove that they qualify each and every school year.”

Medical marijuana tax revenues generated $25 million for UAMS during the previous year. Hardin said sales are expected to increase this year, generating more revenue to help school districts with school lunch debts.

The funds are dispersed at the end of the fiscal year on June 30.

“You would probably be surprised to learn how much school lunch debt that there is in the state,” Hardin said. “This is really probably the best year that we’ve ever had in the state for just students’ access to school lunches.”

Act 656 is another new law that directs the state to cover the cost of reduced-priced meals for students.

In Arkansas, students who qualify will now get reduced-priced meals for free.

The AR Department of Education estimates the total cost to reimburse school districts will be approximately $6 million.


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