Thursday, January 2, 2014

How would legal marijuana affect the Delaware budget picture?

Recall first that we were already facing a $13 million shortfall, and that the Feds just stiffed Delaware for an additional $25 million in Medicaid funds.

Now take a look at Colorado, which projects $578.1 million in legal marijuana sales next year, with a combined wholesale and retail tax revenue of $67 million (10% tax on wholesale transaction; 15% on retail).

Colorado has about five times the population of Delaware, so let's suggest $115.6 million in sales here, which would amount to $13.4 million.

So while legal pot wouldn't wipe out the Medicaid problem, it sure would eliminate the current budget deficit that DEFAC is predicting.

Moreover, you have to remember that there would be secondary gains, budget-wise, in legal marijuana:  decreased prison costs and--very probably--decreased violence on Wilmington's streets.

So who in our General Assembly will have the courage to step up in January with a bill?

. . . crickets . . .

4 comments:

Anonymous said...

The budget gap is $150 million, with that $60 million from an overpaid corporate tax bill still pending.

http://www.wdde.org/54284-delaware-revenue-estimate

NCSDad said...

CO limits sales to non-residents. If you really wanted to crank up the tax machine we could have open sales. The benefits of legalization are staggering. Only difference is in who supplies since it is here already. Criminals, supporting police or businesses supporting welfare programs.

Hank Foresman said...

Actually Colorado is no regulating who buys it is just not legal to take out of the state.

I say this tongue in cheek, you could put a tax on pot, and a special tax on Doritos. Stoners delight.

NCSDad said...

Per USA Today: This depends on whether or not you're a Colorado resident.

If you are, then you can buy up to an ounce per visit for recreational use -- the limit is two ounces for holders of a medical marijuana card. If you aren't, then you're limited to a quarter of an ounce per visit.