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Local governments worry Ohio will cut off their marijuana revenue stream

Ohio Public Radio Statehouse News Bureau

Under current Ohio statute, municipalities with marijuana dispensaries are poised to profit from recreational sales through what鈥檚 known as the Host Community Cannabis Fund, but lawmakers are looking to cut the fund.

At 36%, more than one-third of tax revenue from the state鈥檚 relatively young recreational cannabis program was earmarked for the fund, as outlined in Issue 2, the initiated statute.

Gov. Mike DeWine鈥檚 budget proposal, released Monday, eliminates that community fund, as does . Under the budget DeWine proposed, that pool of money would instead go to jail projects. SB 56 redirects all revenue to the General Revenue Fund managed by the state, but that鈥檚 subject to change, lawmakers have said.

Some local officials feel cheated.

David Kubicki, president of the Columbia Township Trustees in Hamilton County, said he sold residents on the idea of economic benefits cannabis dispensaries could bring.

鈥淭his is a good deal for us,鈥 Kubicki said in an interview Wednesday. 鈥淔orget how you feel about marijuana morally, philosophically, emotionally鈥攁nd by the way, I've never smoked before in my life.鈥

Kubicki said he sees it as bait-and-switch, calling it a 鈥渢ax cash grab.鈥

鈥淚'm just mortified that the state can just come in and change the rules,鈥 Kubicki said 鈥淚t's like somebody said, 'I'm going to take your lunch money,' and you're like, 鈥榃ell, you're not allowed to.鈥 It's like, 鈥楴o, we are.鈥欌

The Ohio Township Association, which lobbies for township governments in the state, sent a statement to its members on Tuesday outlining their opposition. 鈥淲hile your revenue would be eliminated by the General Assembly, you would not be permitted to revoke permits,鈥 the statement read in part.

One lawmaker on the House Finance committee said his office had received several calls Tuesday about the issue. When asked Wednesday, House Speaker Matt Huffman (R-Lima) said he believes money should go directly to the social services he sees as most affected by adult-use cannabis legalization.

鈥淭here does need to be a portion of the marijuana tax revenue that needs to go to local law enforcement. Not every local community has a poison control center, but many of them do,鈥 Huffman said.

Kubicki said he sees that as 鈥渞hetoric.鈥

鈥淭here鈥檚 no way. I'm not going to say, 鈥楬ey, we need a police officer or whatever over in Columbia Township, can you help us?鈥欌 Kubicki said.

Since voters ratified an initiated statute, rather than a constitutional amendment in 2023, lawmakers can make changes at any time.

Sarah Donaldson covers government, policy, politics and elections for the Ohio Public Radio and Television Statehouse News Bureau. Contact her at sdonaldson@statehousenews.org.
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