New report reveals financial gains of legalizing adult-use Cannabis in Pennsylvania
Pennsylvania's Missed Opportunity: Potential Economic Boon from Adult-Use Cannabis Legalization.
An adult-use cannabis market in Pennsylvania has the potential for significant economic impact and job creation in the state.
In his preliminary 2024-25 budget proposal, Gov. Josh Shapiro pushed for the legalization of adult-use cannabis by this summer, with the market up and running by the beginning of 2025.
But, when this year’s fiscal budget was passed last week, there was no mention of an adult-use market. And while public hearings have been held on the topic, and numerous bills introduced in the state legislature over the years proposing legalization, nothing has been passed.
It looks like another missed opportunity for the state.
According to a new report, Pennsylvania could potentially make billions off a legal adult-use cannabis market, and create thousands of new jobs in the process
ResponsiblePA, a newly formed coalition with the goal to help support the legalization of adult-use cannabis in the commonwealth, released the report last month from FTI Consulting, a global business advisory firm.
According to the report, legalization of cannabis for adult use in the commonwealth would lead to an additional $4.2 billion in economic output and $2.6 billion in state gross domestic product (GDP). It would also generate $126 million in new state sales taxes and $212 million in state wholesale cannabis excise taxes, a tax placed on manufactured goods.
Adult-use legalization would also create an estimated 33,350 jobs, according to the report. Of these, close to 13,000 would be direct retail jobs in the adult-use industry. Over 8,000 jobs would be supported by cannabis cultivation. The report said the remainder would be indirect jobs created from the increased consumer spending.
In its report, FTI projected adult-use sales figures for Pennsylvania based on historical relationships between retail medical marijuana and adult-use sales in other states, such as Arizona, Illinois, Massachusetts, and New Jersey. In 2023, Pennsylvania’s retail medical sales were about $1.2 billion, which led FTI to project a first-year adult-use retail sales of $2.1 billion.
“With 90% of Pennsylvania’s neighboring states already legalizing cannabis and a robust medical operation in the state for nearly a decade, we believe now is the time to legalize cannabis,” Brittany Crampsie with ResponsiblePA said in a statement.
A two-thirds majority of Pennsylvania voters support the legalization of adult-use cannabis according to a recent poll conducted by Franklin and Marshall College.
