Cannabis Licensing
Total Expenses
$863,321
1%
1Total Revenues
$303,000
-14%
2General Fund Contribution
$510,321
2%
3
District Sales Tax Contribution
$0
0%
4
Other Fund Contributions
50,000
-100%
5
Funded Staffing
2.00
0.00
6Website
Overview
Mission Statement
The Cannabis Licensing Office (CLO) creates and implements the licensing and regulatory framework, at the local level, that balances medical use, adult recreational use, and the health, safety and welfare of residents and businesses within Santa Cruz County, while reducing harm associated with illegal activities.Department Overview
The CLO accomplishes its mission through a combination of core services that include licensing, code compliance and enforcement. Licensing serves to implement State and local legislative actions for the regulation of legal cannabis businesses. Code compliance performs quarterly inspections of all licensed cannabis businesses to ensure licensees comply with the terms and conditions of their license. Enforcement carries out enforcement activities against illegal operations within the County in conjunction with the Sheriff’s Office.Budget Summary
Department Budget Overview
Adopted Budget Summary
The Adopted Budget included a status quo staffing of 2.0 full-time equivalent (FTE) positions, including negotiated salary and benefit increases. Appropriations totaled $863,321, funded by revenues of $303,000, a General Fund Contribution of $510,321 and use of Other Fund Contributions of $50,000.Budget Summary
The budget decreased expenses by $38,680 from reduced illegal activity and Sheriff’s Office staffing changes, which reduced Sheriff staffing for enforcement activities. The budget decreased revenues by $50,000 due to a $150,000 decrease in civil penalties offset by a $100,000 increase from licensing. Ordinance changes in 2024-25 resulted in a new licensing fee structure, which is presented in the Unified Fee Schedule.Final Budget Summary
The Final Budget added $50,000 expenses for the carryover of professional services, funded by the carryover of prior year fund balance.Emerging Issues
Emerging Issues
Cannabis Business Licenses: Market adjustments by the cannabis industry and ordinance changes by the Board in 2024-25 resulted in business consolidations with reduced licenses being sought, impacting licensing revenues. A new licensing fee structure is being proposed in 2025-26.
Cannabis Business Taxes: State taxing changes will result in a 10-15% reduction in cannabis business taxes. This does not directly impact this budget but does impact General Fund evenues.
Cannabis Business Taxes: State taxing changes will result in a 10-15% reduction in cannabis business taxes. This does not directly impact this budget but does impact General Fund evenues.
Department Operations and Performance
Divisions
Services
Cannabis Licensing
Expenses
$863,321
Operational Plan Objectives and Accomplishments
This division supports various department objectives
Completed/Accomplishment
Proposed/In-Progress/Amended
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Services
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Objective
Major Budget Changes
Divison: Division Name
Sort By Division:
| Major Changes | Net FTE Changes |
2025-26 Ongoing Budget Increase / (Decrease) |
2025-26 One-time Budget Increase / (Decrease) |
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Budget Details
The charts below show department expenditures and revenues by division and service. Click on the pie charts to drill down for more detail. Complete detail can be found on the County's Transparency Portal.
Expenses by Service
Expenses and Revenues over time
Personnel Details
The chart below provides the department personnel detail by division, service, and classification.
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