State lawmakers already looking to tap marijuana revenue
OLYMPIA, Wash. (AP) - Washington state lawmakers are already starting to count on revenue from the legalization of marijuana, with the House approving a bill that would tap those tax dollars to expand early learning.
Before the House passed the bill on Wednesday night by a 59-38 margin, Rep. Ruth Kagi, D-Shoreline, said she couldn't think of a better use for the money. She argued that there was a clear nexus between helping children early in life and avoiding troubles later.
Marijuana remains illegal under federal law, and federal officials have not yet decided whether to try and block implementation of the legalization measure. Washington is moving ahead with plans to develop a network of state-licensed growers, processors and retailers.
Republican Rep. Gary Alexander said he supports early education but would prefer to see the money come into the general fund and then be prioritized along with all other expenses. He suspected that early learning would be very strong on those priority lists but said it wasn't right to dedicate one revenue stream to that plan.
"We don't even know what that amount of money is," Alexander said. "It's too early to be dedicating something when we don't really know what the source of (the) dollars is or how much we have to work with."
If the legal marijuana system does get implemented, the state stands to bring in hefty new tax revenues. The product would be taxed heavily, with analysts estimating that a legal pot market could bring Washington hundreds of millions of dollars a year in new money.
Kagi's proposal is expected to cost more than $200 million per year by the 2017-2019 biennium.
The bill now goes to the state Senate.
Before the House passed the bill on Wednesday night by a 59-38 margin, Rep. Ruth Kagi, D-Shoreline, said she couldn't think of a better use for the money. She argued that there was a clear nexus between helping children early in life and avoiding troubles later.
Marijuana remains illegal under federal law, and federal officials have not yet decided whether to try and block implementation of the legalization measure. Washington is moving ahead with plans to develop a network of state-licensed growers, processors and retailers.
Republican Rep. Gary Alexander said he supports early education but would prefer to see the money come into the general fund and then be prioritized along with all other expenses. He suspected that early learning would be very strong on those priority lists but said it wasn't right to dedicate one revenue stream to that plan.
"We don't even know what that amount of money is," Alexander said. "It's too early to be dedicating something when we don't really know what the source of (the) dollars is or how much we have to work with."
If the legal marijuana system does get implemented, the state stands to bring in hefty new tax revenues. The product would be taxed heavily, with analysts estimating that a legal pot market could bring Washington hundreds of millions of dollars a year in new money.
Kagi's proposal is expected to cost more than $200 million per year by the 2017-2019 biennium.
The bill now goes to the state Senate.
Lawmakers need to stop thinking of this natural plant as The Goose That Laid the Golden Egg.
wasn't lotto supposed to go to education??
@EASTSIDE 1 Olympia let you believe it.
I never understood why they didn't have a state tax in place when they legalized it. Â
Isn't money the whole reason the state wanted legalization to begin with? $$$$$$$$$$$$$$$$
@jdoll88 Actually, taxes were the strongest justification given in the yes campaign.And people seemed to have forgotten or ignored that little fact...until now.
Why not pay off the debt we already have instead of finding new ways to spend it?Â
What justification is the to excessively tax marijuana? I am not a marijuana user and see some of the tax proposals being discussed are starting to look like a fine or penalty. Sorry, that standard "we're raising money for education" response ain't going to fly with me.
Feds to Washington State.Thanks for collecting the money for us.
@m9078jk3 You know, that's a good point. Feds could step in and seize the tax revenue... wouldn't surprise me.
@Scoondog @m9078jk3 It would shock me because it's baseless PFTA speculation. The States have been collecting tax revenue from "drug dealers" for decades now. Don't hold your breath while you're waiting for the Feds to try to steal State and/or local tax revenue.
Tax it too much and people will just go right back to buying it from the same sources they do now.
@FoolishReporter @SeattleSports64 thats good though. pot revenue could be a great boon to states that really need it
@AnonSikko @SeattleSports64 i know. but they have nothing in place yet... legislators working off of projections i imagine ;)
@FoolishReporter Will they also tax those 3 foot bongs with the skull heads?? Saw those at a Grateful Dead concert.
It's a cash cow! Why the heck wouldn't they as there is a huge need for resources. This ongoing recession has left a lot of people hurting and in need.Â
I agree why don't you wait a yr to judge income from the program and maybe pay down some debt, since I hear there is a shortfall in Olympia. Â
Of course lawmakers are spending the tax money before they even get it. IDIOTS! What if the Feds step in, huh? What if there isn't as much tax revenue as you assume there will be? How stupid can lawmakers be?! You don't spend money that you don't have yet! PERIOD!
(Side note: I don't care if the money goes to early education. My problem is that they are spending the money in their heads before its even in their hands.)
@Tattooed_Angel2Â Amazing how the never learned not to count chickens before they are hatched...
Seems Olympia is already passing around the big money doobie before its even lit....
Brilliant. Program that benefits the kids. With each important effort to use these revenues responsibly (if that were possible for Olympia), it makes a federal interferance less likely.
@Skip No, it doesn't.
another soldier for the O man. He wants to spend millions on pre K education. All his data is from the 1940's with a sample of less than 100 kids. they spend 40K per kid and realize little long term benifit. That was when schools taught the three "R s" now do we really think that this will help.. another govt give away..
@Linc239 Well, maybe they will get a better education than you received. At least learn to spell and use punctuation.
Early Learning? Â Why bother?
Remember the old commercial? Why do you think they call it dope?
@Agent43 Why do you think that they call it muggles?
Money is spent even before it is made! Classic politics
Putting the cart before the horse aren't they.
Totally, but the feds are less likely to get involved if they see a benefit.
@Skip If you truly believe that then you are a fool.
@Skip If they don't step in and confiscate it (the tax revenue)
well lets get it going already....i'm ready to go to my friendly neighborhood corner store one saturday and get my morning coffee, couple joints, pint of jack, and newspaper...ahhh, what a morning that will be...
What's the point on using this tax revenue for any NEW spending when we already have a huge deficit and this can fill the hole? Liberals and tax revenue... it doesn't matter how bad the deficit is they see new money and they can think of a million things to do with it.Â
Politically, using the tax money from cannabis sales towards beneficial programs for the poor or people not covered under health care is the best bet. Thats the best way to Keep the DOJ off our backs.
Not surprising that democrats want to waste more money on "early learning" since it has proven to be a failure everywhere it was imposed on the tax payer. When the results are measured the kids from these programs do no better in school than kids that did not attend. But when did results matter to Liberal tax and spenders?
All these Head Start programs are actually just baby sitting for welfare moms.Â
@Goodwin I have had all three of my children in the Early Headstart program including ECAEP  and it has done a lot of good for them, both emotionally, academically and socially.  I am also on the Policy Council and I can tell you first hand how wonderful the program is for these children. And stating that the program is just a babysitter for welfare moms  wow really... You truly do have your facts wrong.
@Goodwin None of what you said is true.Â
Pot being used to make kids SMARTER. Who woulda thunk it?
Olympia is drooling just thinking of getting more money in taxes.
@dmw2913 Of course they are.
Not surprised the State is already talking about spending tax money they haven't even gotten yet, from a market that isn't even open yet on a project that isn't even implemented yet. SMH. Â
All talk, no action......