Looking at the Numbers: Pot Revenues Not Major Source of Funding for Local Cities

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The amount of money cities receive from the sale of marijuana is not a significant source of revenue. 

For example, Chehalis received $15,711 in 2016 and is projected to receive a total of $26,731 for 2017 compared to a total budget of around $9 million. Tenino is projected to receive a total of $625 out of a budget of $1.2 million. 

“From the city perspective, it is a drop in the bucket,” Chehalis City Manager Jill Anderson said. 

The state is projected to bring in $730 million in marijuana revenue during the 2017-19 biennium. The state sets aside a pool of $6 million to be distributed among the jurisdictions with marijuana businesses.

According to the state Liquor and Cannabis Control Board, the amount each local government receives is based 30 percent on the amount of sales and 70 percent on the population. To be eligible to receive funds, it must have marijuana retailers.   



During the most recent Legislative sessions, funds from marijuana revenues were diverted to fund education to satisfy the 2011 McCleary Supreme Court ruling in which the court determined education was not fully funded by the state. Since then, the Legislature has been working to fund education. 

Anderson said the nonprofit lobbying organization, the Association of Washington Cities, and the resource organization, the Municipal Research and Services Center, have yet to determine how this will affect the amount of money cities and counties would receive from marijuana revenue or the overall size of the pool.

Chehalis is not depending on marijuana revenues to fund anything in particular, Anderson said. It goes into the general fund, which funds everything from public safety to road maintenance and day to day city functions.