(The Center Square) – State tax revenues from the legalization of marijuana have been “overemphasized,” Dr. John Hudak of the Brookings Institute told the Maryland House Cannabis Referendum and Legalization Workgroup on Wednesday at its first meeting.
“It is true that significant amounts of tax revenue come into the coffers of states that have legalized cannabis, but it’s not the level of tax revenue that will reverse budget deficits, that will build schools across the state of Maryland, that will fill in all the potholes in the state and magically cure all the state’s budget woes,” Hudak said. “But it is a significant portion of revenue that is an important conversation but should not be a driving part of it.”
House Speaker Adrienne Jones announced the formation of the work group in July, which is chaired by House Judiciary Chairman Luke Clippinger. Jones has said previously she backs a bill that would allow voters in November 2022 to choose to legalize cannabis for recreational use.
The work group is discussing the legal, regulatory and oversight of the cannabis industry if the referendum receives voter approval. Hudak told the 10-member work group that revenues should not be a key consideration.
Hudak said cannabis legalization should address racial justice and equity. According to the American Civil Liberties Union, Black Maryland residents are 2.2 times more likely to be arrested for cannabis offenses than whites. Worcester, Dorchester and Calvert counties were three of the top nine counties for 2018 cannabis arrests.
A cannabis legalization bill was introduced during the 2021 legislative session but failed to make it out of committee.
Nineteen states have legalized cannabis for recreational use. Colorado, one of the first states to do so in 2014, has recorded nearly $11.5 billion in sales through June of this year, according to Hudak’s presentation.
Hudak said lawmakers shouldn’t consider the legalization process in a vacuum.
“They should compare it to the status quo, which is prohibition, and the costs that legalization creates financially, socially, racially, personally and its efforts to achieve its stated goals, Hudak said.
The first legislation is not going to be perfect, Hudak said.
“There are going to be challenges,” Hudak said. “There are going to be problems. But getting it right on the first try is not necessary. No state has gotten it right on the first try.”
The work group meets again on Oct. 9 to discuss the health issues with legalizing marijuana.