Pennsylvania Senators Urge Cannabis Legalization To Raise State’s Revenue

The pandemic has created unprecedented budget challenges in Pennsylvania. Senator Sharif Street sent the following letter to Governor Tom Wolf and Senate leadership urging them to consider legalizing cannabis to raise revenue in the fall. Sen. Street was joined on the letter by 14 other senators.

Recently, the Independent Fiscal Office released a report on the projected revenue impact of COVID-19 on state General Fund revenues. During the current 2019-2020 fiscal year, it is estimated the General Fund would lose $3.9 billion due to COVID-19, including $2.1 billion that would be shifted to the next fiscal year and a $1.8 billion permanent revenue loss from a contraction of economic activity.

“Legalizing adult-use cannabis will raise revenue and help mitigate the possible need for cuts, and additionally can serve as a revenue saving tool in agencies such as the Department of Corrections,” the senators said in the letter.

Legalization would raise around $581 million per year through taxation and regulation, according to the state’s Auditor General.