News Photo by Steve Schulwitz Neighborhood Provisions owner Kevin Currier shows off a container of marijuana for sale at the dispensary in Alpena. A tax on the drug earned local governments $51,841 for each licensed business open in their cities, townships, and counties.

ALPENA — This year, local governments that allowed marijuana businesses to operate in their jurisdictions will receive smaller allocations from the state’s pot of money made up of the 10% excise tax on the sale of the drug.

On Tuesday, the state announced that municipalities will receive $51,841 for each licensed marijuana retail store or microbusiness operating within their boundaries. That allocation slipped from $56,453 last year, but remains well above the $28,001 per licensed marijuana operation governments received in 2021, when Michigan’s marijuana industry was still getting its legs under itself.

Despite the slight dip in allocation, local government officials say the money is welcome, especially during current times, with budgets tight and expenses rising.

According to state data, Alpena County will receive $155,523 for the three licensed businesses in the county. A pair of the marijuana businesses are in Alpena, which will receive $103,682, and the third store is in Sanborn Township.

County Administrator Mary Catherine Hannah said the county knew it would receive something from the state, but the commissioners were not sure how much. She said the board budgeted $100,000 for the 2023 budget, so the extra $55,000 is welcome.

“The extra money will have a huge impact and could be used for things like law enforcement, the courts, or other projects,” she said. “The added revenue is certainly nice and it will be put to good use.”

For smaller municipalities, such as Sanborn Township, $51,841 is a large sum of money. This is the first time since voters legalized marijuana sales that the township will receive a check from the state.

Township Supervisor Ken Gauthier said that, thus far, the township Board of Trustees doesn’t have definitive plans on how to invest the marijuana tax revenue. He said it could be used to help pay for a new fire truck, add recreational infrastructure in the township, or to get a streetscape project off the ground.

“It’s money we can always use, and there are some projects we have been talking about that we might be able to put the money toward,” Gauthier said. “It could go into the area of recreation.”

Alpena City Manager Rachel Smolinski said the city will add the revenue into its general fund and it could be used to help pay for any city operations or projects.

She also provided an update on a third marijuana shop slated to open on Chisholm Street, near McDonald’s.

“Parc Cannabis has been issued their final certificate of occupancy and is in the final stages of the licensing process through the city,” she said. “They must first get their state inspection, which is scheduled for this Friday.”

Rogers Township, in Presque Isle County, was the first to allow a recreational marijuana store to open in Northeast Michigan. That township will receive $51,841 and Presque Isle County will receive $103,682 for the marijuana business in Rogers Township and another in Onaway. Onaway also received payment for having one marijuana business.

Alcona County and Harrisville will each receive $51,841 for the one marijuana business in Harrisville.

In total, about $198.4 million was available for distribution from the Marihuana Regulation Fund, which was a 15% increase from the year prior. The state Treasury Department said the allocations to local governments were smaller because of a decline in the price of marijuana and more licensed business opening.

Money from the excise tax also provided $70 million to the School Aid Fund for K-12 education and $69.4 million to the Michigan Transportation Fund for road improvements.