Arkansas public school students eligible for reduced-price school lunches aren’t having to dig into their own pockets this year, thanks to a pair of state laws that use medical marijuana tax revenue to further subsidize the cost of those meals.
Passed by the state legislature last year with no votes in opposition, the laws created a fund to address “food insecurity and health needs” and a means for students eligible for reduced-price meals to get their breakfast and lunch for free.
The state now collects around $31 million a year in tax revenue from medical marijuana sales. Scott Hardin, spokesman for the state Department of Finance and Administration, said agencies such as the Alcoholic Beverage Control division and the Department of Health take $3-5 million of that revenue each year to administer the medical marijuana program. In the past, the remaining money has gone to the University of Arkansas for Medical Sciences National Cancer Institute Designation Trust Fund.
The new state laws redirect the money to a reserve fund for food insecurity and health needs. The state budget sets aside separate funding for UAMS to cover its pursuit of a National Cancer Institute designation.
The U.S. Department of Agriculture pays for free or reduced-price lunches for tens of thousands of kids in Arkansas, based on household income. In the 2022-23 school year, students eligible for reduced-price lunches paid 30 cents for breakfast and 40 cents for lunch. In total, those students paid $956,986 for 3,189,954 breakfasts and $2,097,570 for 5,243,926 lunches for a total of $3,054,556, according to the state Department of Education.
This school year, there are 55,662 students eligible for reduced-price meals out of 466,055 students in grades K-12, according to Kimberly Mundell, spokeswoman for the state Department of Education. T
After reimbursing agencies for the cost to administer the medical marijuana program, the state has transferred about $26 million a year to UAMS over the past three years. If the reduced-price lunch subsidy will cost around $3 million, that will leave about $23 million in the fund this year after paying for the meals. The state legislature has not determined how to spend the remaining money, but state law says it must go toward addressing food insecurity and health needs.
Medical marijuana patients in Arkansas pay a 6.5% sales tax and a 4% privilege tax on purchases at dispensaries. Dispensaries also pay the 4% privilege tax when purchasing products from cultivators.
In a separate move addressing food insecurity among youths this week, Gov. Sarah Sanders said the state has joined the federal Summer Electronic Benefit Transfer (EBT) program. The program will provide $120 in food benefits for each child eligible for free and reduced-price lunch over the summer. School-aged children who received Supplemental Nutrition Assistance Program benefits (also known as food stamps) or who have been determined to be eligible for the National School Lunch Program will automatically qualify for the summer benefits, according to a press release from the governor’s office.
The governor’s press release referenced that she signed legislation last year to provide free breakfast and lunch to students who previously qualified for reduced-price meals but did not mention the funding came from taxes on medical marijuana.