In the city of brotherly love, Philadelphia, the prospect of a financial boon from marijuana legalization remains elusive as Republican lawmakers continue to deny Governor Josh Shapiro's (D-PA) push for the drug's legalization.
This marks the third time the Democratic governor has urged lawmakers to join the ranks of 24 other states that have legalized recreational marijuana use, a move he believes could generate $1.3 billion in new revenue over the next five years.
"I know some are going to say its complicated, but its been talked about for years," Shapiro asserted during his annual budget address to the General Assembly last month. He pointed out that neighboring states like Ohio and Maryland have already legalized the drug, leaving Pennsylvania lagging behind. "And just in the last two years, Ohio legalized, Maryland legalized, and we keep falling further behind."
According to The Washington Examiner, there is some Republican support for the legalization of recreational marijuana in the General Assembly, including from Senator Daniel Laughlin, who chairs a committee responsible for cannabis legislation. However, the Republican-controlled Pennsylvania Senate shows little enthusiasm for moving forward with a bill this year. Concerns about public safety, particularly intoxicated driving, have been cited as a significant deterrent by law enforcement groups.
The majority of objections raised by GOP legislators focus on the perceived inadequacies of current proposals and legal challenges arising from marijuana's classification as a Schedule I drug. Senator Joe Pittman, the majority leader of the Pennsylvania Senate, criticized the way Pennsylvania implemented medical marijuana when it was legalized in 2016 and dismissed Shapiro's revenue projections as inflated.
In an interview, Pittman revealed that his caucus largely shares his opposition, despite some Republicans being open to legalization. "My obligation as majority leader is to try to make sure I understand where the prevailing view of our caucus is," he stated, "and I do not yet see that prevailing view within our caucus."
Meanwhile, Representative Jesse Topper, the GOP leader of the Pennsylvania House, described Republican support in his caucus as "fairly limited." Democrats narrowly control that chamber by a zero-vote margin.
In his budget address, Shapiro presented a financial argument for changing the law, warning that neighboring states are benefiting from the tax revenue of Pennsylvania residents who consume marijuana. He estimated that up to 60% of those visiting dispensaries in adjoining states are from Pennsylvania.
"Letting this business operate in the shadows doesnt make sense, and by doing nothing, were making Pennsylvania less competitive," Shapiro argued. "Lets not kid ourselves. Pennsylvanians who want to buy cannabis are just driving across the border to one of our neighbors."
However, Republicans have scrutinized Shapiro's calculations, arguing that the tax windfall would be significantly smaller than the $1.3 billion he's projecting. For instance, New Jersey generated nearly $50 million in 2024, while Maryland is expected to gross more than $100 million this year.
Part of the discrepancy lies in the licensing fees Shapiro's office claims it will collect in the first year, totaling more than $500 million. Additionally, the 20% sales tax Shapiro is proposing, which is double that of some neighboring states, is another point of contention.
Democrats argue that Pennsylvania should not be leaving revenue on the table, regardless of the projection used for legalization. The state's Independent Fiscal Office estimated that legal marijuana could yield $41 million in the first year and up to $271 million by 2028.
"Look, its not going to solve all problems, but it will generate revenue, and significant revenue in a way that we dont have to raise taxes on ordinary Pennsylvanians," said Senator Sharif Street, the co-sponsor of a Senate legalization bill.
However, Republicans dismiss legalization as an unrealistic solution to the $4.5 billion shortfall Pennsylvania faces in this years budget, with Topper labeling it a gimmicky tax. Pittman echoed this sentiment, stating, "You know, Im not a believer that revenue from vices should be a driver in the conversation."
The debate over marijuana legalization is unfolding in a shifting political climate. Half of Pennsylvania residents support recreational legalization, according to a 2024 survey from Muhlenberg College, compared to 33% in 2013. Some polls show support nearing two-thirds of Pennsylvania voters, although Muhlenberg reported a decline in its last three surveys.
The shift in public sentiment has influenced the Pennsylvania government. Shapiro, who endorsed legalization for recreational use in 2019, about three years into his tenure as Pennsylvania attorney general, is a prime example. In the General Assembly, Street noted that he found little support for marijuana legalization when he first arrived in Harrisburg eight years ago, but today, nearly every Democrat is on board.
He is co-sponsoring his legalization bill with Laughlin, while Senator Gene Yaw, a second Republican, signaled openness to lifting the prohibition on recreational use in a recent interview with local media. "Now almost all the Democrats, I think nearly every Democrat, supports it, and there are a significant number of Republicans," Street said in an interview. "So, weve made significant progress," he added.
Topper, the House GOP leader, suggested that popular support for legalization is somewhat overstated, especially in more conservative parts of the commonwealth. However, he conceded that marijuana is no longer met with the same "visceral" reaction it once was. "Theres no doubt that the culture has changed," he admitted.
The core of the Democratic argument for legalization is that law enforcement resources would be better utilized on harder drugs than marijuana. Street also highlighted the disproportionate arrest of black people for possession. Shapiro echoed these arguments in his budget address last month, urging the General Assembly to pass a bill that expunges the records of those convicted of nonviolent marijuana offenses.
However, Pittman argued that the "depth needed to have a serious conversation" on legalization was lacking and insisted that Shapiro present the General Assembly with the legislation he wants signed into law. "When we deal with an issue such as this, that is nuanced and of such a great magnitude, I think the governor first owes us words on paper that clearly show what his vision for such an initiative is," Pittman said.
The governors office pointed to Shapiros budget blueprint, which, in addition to expungement, requests $10 million for restorative justice initiatives and $25 million for small businesses entering the cannabis marketplace.
Much of the GOP opposition boils down to practical objections to his proposal. Topper suggested that a 20% tax rate was so high it would perpetuate the illicit market that already exists in Pennsylvania. He also identified the Schedule I classification of marijuana as "one of the largest stumbling blocks" since banks wont lend to dispensaries unless federal restrictions are relaxed.
The Drug Enforcement Administration moved to lower that classification, reserved for substances like heroin, under President Joe Biden last year, but a hearing on reclassification was canceled in January. "If that were to change, and these businesses would be able to actually have capital," Topper said, "I think that would clear the way for more support."
In terms of expungement, Pittman, the Senate GOP leader, seemed to rule out past convictions in any future legalization bill. "I certainly am not in the mindset that we need to be going back into expungements of convictions that have already occurred," he said.
Public safety remains a significant concern over legalization. Scott Bohn, the executive director of the Pennsylvania Chiefs of Police Association, pointed to higher rates of intoxicated driving in states that permit the drug. Currently, there are no reliable breathalyzers that can detect whether someone is too impaired to drive, although several are being pilot-tested by law enforcement nationally.
Bohn also expressed concern about increased adolescent use if the drug becomes more prevalent, noting that today's marijuana has far higher concentrations of THC, the compound responsible for its psychoactive effects, than a few decades ago. "I mean, theres just so many issues, and the only thing were talking about is money," said Bohn.
Democrats counter that marijuana use is already prevalent in Pennsylvania since every neighboring state except West Virginia has legalized the drug. "The ostrich approach of sort of putting our head in the sand and pretending its not happening doesnt make anyone safer," said Street.
The two parties are not entirely at odds over how to generate additional revenue in Pennsylvania. There is bipartisan interest in taxing so-called skill games as thousands of unregulated terminals, akin to slot machines, pop up in bars and convenience stores across the commonwealth.
Republicans have scoffed at the 52% tax that Shapiro proposed in his budget address, but there is genuine momentum behind regulating the machines after negotiations fell apart last year. "I do think its an area where we can come together and figure out how to make something there happen," said Pittman, "and that will invariably drive some revenue to the commonwealth, Im sure."
Shapiro estimated the skill games would generate $150 million in the first year if his tax is enacted.
Pennsylvania faces a daunting budget shortfall next year. Currently, the government has some $10 billion in cash reserves, primarily in its rainy day fund, but it is running a chronic deficit that will deplete those reserves by 2028. The Independent Fiscal Office projects deficits of $4.5 billion next year will grow to $6.7 billion by 2030.
Harrisburg found areas of bipartisan cooperation in the last budget, enacting permitting reform and lowering the corporate net income tax. The General Assembly also authorized $1.1 billion in new school funding, including $526 million to address a 2023 court order that determined the previous education budget was not equitable for poorer districts.
However, Topper cited "areas of vast disagreement" that will make the current legislative session a challenge in divided government. There isnt the same appetite for more education dollars, as Shapiro again proposed this year, while Republicans are also weighing ways to slow the growth of its Human Services budget.
"Were concerned about the sustainability of these budgets moving forward if we dont get our economy turned around, and I can tell you, theres no tax on marijuana thats going to solve the budget problems that are coming," said Topper. As the debate continues, the future of marijuana legalization in Pennsylvania remains uncertain, with both sides holding firm to their positions.
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