As the governor of California pledges to continue working to “strengthen” the state’s marijuana market, he’s also proposing to help close an overall government budgetary deficit by borrowing $100 million from a cannabis tax fund designated for law enforcement and other public safety initiatives.
Gov. Gavin Newsom (D) presented his budget plan on Wednesday, previewing a series of steps he wants to take to address the state’s $37.9 billion deficit. That includes taking a $100 million budgetary loan from the Board of State and Community Correction (BSCC)’s Cannabis Tax Fund subaccount to support the General Fund.
A summary of the executive plan notes that the marijuana tax dollars, which would be repaid in a future fiscal year, would come from resources “not currently projected to be used for operational or programmatic purposes.”
The governor’s office also used the budget announcement to tout ongoing efforts to improve the state’s cannabis industry.
That’s included the “reform and simplification of the tax structure, fee relief to support entry into the legal market, investment in grant programs that foster equity, providing resources to cities and counties to expand pathways for local licensing and regulation of cannabis retailers, and assisting local governments to move licensees
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