Cannabis Could be the Windfall the State Needs
The Sunnyside cannabis dispensary in suburban Schaumburg. (Photo provided.)
The state has brought in more than $100 million in tax collections since recreational use of marijuana was legalized at the beginning of the year. September collections on August sales topped $20 million for the first time.
With an estimated $5 billion hole in the state budget, the sale of recreational cannabis won’t close the gap, but it could be a long-term benefit to the state and local governments.
35% of the taxes on recreational marijuana go to the state General Revenue Fund, 25% of taxes go to a program helping communities that have been disproportionately impacted by the justice system, directed to address substance abuse and prevention and mental health concerns, or allocated to local governments to support their own crime prevention programs. 10% of sales goes to helping the state pay its backlog of bills, and 8% goes back to local governments.
While the dollars may be helpful to state and city government, they aren’t the reason marijuana sales are starting to boom across the state.
“There’s a lot of people that are dealing with anxiety, dealing with depression, dealing with the unknown right now because of the pandemic,” said Jason Erkes, a spokesman for Cresco Labs, which operates 9 dispensaries around the state branded as Sunnyside stores. “A lot of people are turning to cannabis as a remedy to get through this tough time,”
New stores are opening across the state and it appears growth will continue through 2020 into 2021. It also appears the public may be getting more accepting of the use of cannabis.
“All you have to do is stand in line at one of the shops around the state to see that the stigma is going away,” says Erkes. “You’ll see grandmas, you’ll see school teachers. People from all walks of life are coming in and turning to cannabis.”
Numerous communities have referenda on the ballot this November to allow the sale of recreational marijuana in their municipalities. Supporters say it will bring much needed revenue while opponents often say a cash-only business selling federally limited narcotics will increase crime in the communities.
