With just two weeks left before Pennsylvania’s new fiscal year begins on July 1, the push to legalize marijuana for adult use is emerging as a central issue in ongoing budget negotiations.
Governor Josh Shapiro’s $51.5 billion budget plan depends in part on new revenue from legal cannabis sales—part of a broader Democratic effort to make Pennsylvania the 25th state to legalize recreational marijuana. The House passed a legalization bill last month that would allow those 21 and older to possess and purchase marijuana, but Senate Republican leaders have yet to embrace the proposal.
Shapiro’s budget counts on $1.2 billion in new tax revenue from a combination of adult-use marijuana sales, expanded application of the corporate net income tax, and regulation of skill games. Without marijuana legalization, a significant portion of that projected revenue disappears, leaving a larger hole in the state’s finances.
Supporters of legalization say it would not only generate hundreds of millions in tax revenue but also help address social justice concerns, stimulate small business growth, and reduce strain on the criminal justice system. Opponents, mainly among Senate Republicans, have voiced concerns over public health and safety, and no agreement has been reached.
While Democrats who control the House are united behind legalization, the Republican-controlled Senate is the main roadblock. Closed-door negotiations have reportedly made little progress, with disagreements over marijuana, Medicaid costs, and skill game regulations slowing talks to a crawl, according to a report released today by the Associated Press.
If lawmakers don’t finalize a deal by July 1, the state will lose certain spending authority—adding urgency to a debate increasingly centered on whether Pennsylvania will finally join the growing list of states with legal marijuana sales. A spokesperson for Governor Shapiro says that despite Republican opposition to legalizing cannabis, he’s confident that there’s enough bipartisan support to include it in the final budget deal.
