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Q&A
Council member Brannan questions Department of Finance on tax enforcement and marijuana shop inspections
4:38:17
·
4 min
Council Member Justin Brannan questions Commissioner Preston Niblack and other officials from the Department of Finance about the Office of Tax Enforcement's budget, staffing, and involvement in marijuana shop inspections. The discussion covers budget overruns, overtime issues, staffing challenges, and the handling of funds from civil forfeitures.
- The Office of Tax Enforcement significantly exceeded its budget in FY '24, spending $704,172 against a budgeted $32,586.
- Overtime costs increased due to participation in Operation Padlock to Protect, targeting illegal marijuana shops.
- The Office of Tax Enforcement is understaffed, with 13 active employees out of an authorized headcount of 23.
- Civil forfeiture funds from marijuana shop inspections are primarily managed by district attorneys, with some portion going to the Sheriff's Office for specific initiatives.
Justin Brannan
4:38:17
In FY '24, the Office of Tax Enforcement was budgeted at $32,586 at adoption.
4:38:25
They ended up spending $704,172
Preston Niblack
4:38:33
Yes.
Justin Brannan
4:38:34
Okay.
4:38:34
How do we not do that again?
Preston Niblack
4:38:37
Well, I think as we slow down with the I mean, it a headcount issue?
4:38:45
It is slightly it is partly a headcount issue.
4:38:47
It's a small staff.
Justin Brannan
4:38:48
What's the current what's the current budgeted and actual headcount for the sheriff's department?
Preston Niblack
4:38:52
I'm gonna turn well, for the sheriff's department?
Justin Brannan
4:38:56
Or I'm confused.
4:38:57
This is not this is separate these guys are raiding illegal weed shops, But they're not the sheriff?
Preston Niblack
4:39:02
The the Office of Tax Enforcement has been part of the the sheriff's joint compliance task force in Operation Padlock to Protect, yes.
Justin Brannan
4:39:12
Okay.
4:39:12
So what is the issue there that they're going over there over time by over 2000%?
Preston Niblack
4:39:18
Again, I mean it's they're participating in the task force and the nature of the inspections that are conducted of the illicit pot shops under Operation Padlock to Protect is that if you are there, you've inspected a shop, you're seizing evidence, you've made an arrest, etcetera, you're going to finish the job even if it means that you're there past your normal shift time.
4:39:40
So you're going to incur overtime.
4:39:42
Given the pace of activity in the last year, especially in the first nine months let's say of the Operation Padlock to Protect, there was a lot of overtime incurred.
4:39:54
Now as Operation Padlock and Protect sort of winds down, we've closed as you know something like 1,400 shops.
4:40:03
As the pace of operations there slows down somewhat, we don't necessarily expect to see those same levels of overtime going forward.
4:40:12
I did want to if I may go back to one previous question.
4:40:16
We had 149 applicants, candidates on the civil service list for city tax auditor which we hired 54 I think.
4:40:26
This is OTE.
4:40:28
The current active head count in the Office of Tax Enforcement is 13 and their authorized head count is 23.
4:40:35
So they're down in staff.
4:40:40
So that's also part of why we've had some overtime.
Justin Brannan
4:40:44
How much revenue did DOF receive as a result of civil forfeiture following marijuana shop, inspections in FY twenty four?
Preston Niblack
4:40:54
So I'm gonna turn to, deputy commissioner James to answer that question.
Diana I. Ayala
4:40:59
I'm sorry.
Preston Niblack
4:41:00
The civil forfeiture from the we don't we don't actually get any civil forfeiture money.
4:41:06
There's no civil forfeit the civil forfeiture program is a district attorney program.
Justin Brannan
4:41:13
Who gets the money?
4:41:14
NYPD?
Preston Niblack
4:41:15
Well, it's it's really a district attorney program.
4:41:18
I don't know.
4:41:19
Do you So
Jacqueline James
4:41:21
So civil the civil the civil service funding comes from the state.
4:41:28
It's a joint investigation that the sheriff does with the district attorney.
4:41:33
They didn't have to demonstrate that they successfully got revenues from whatever raid that they did.
4:41:40
And then the Department of the Sheriff's Office receives a portion of that.
4:41:44
So it's a it's a more in-depth process that happens.
Preston Niblack
4:41:49
When it comes Whatever they do get, what do they do with their money?
4:41:52
Have received?
4:41:53
I don't think we've received
Jacqueline James
4:41:54
We've received some funding.
4:41:55
Some?
4:41:55
And we have it in our budget.
4:41:57
And it is used to spend on the sheriff's initiatives.
4:42:00
So currently I think we spend like $118,000 so far on I forgot if it's radios we purchased or some other equipments that we purchased for the sheriff's office.
4:42:10
But it has to be spent on the sheriff's initiatives.
Preston Niblack
4:42:15
It's not it's not a huge amount of money that we've received.
4:42:17
We'll come back to you with a more complete detailed answer.