Study: Calif marijuana legalization could add millions in revenue, but impacts hard to measure

By Brooke Donald, AP
Wednesday, July 21, 2010

Study: CA pot legalization impacts hard to measure

SAN JOSE, Calif. — A new study says legalizing marijuana in California could result in additional revenue for local governments and free up law enforcement to prosecute other crimes.

But the report by the state’s nonpartisan Legislative Analyst’s Office cautions that any potential windfall could be offset by a number of factors, including how the federal government responds and how local governments choose to tax and regulate sales and distribution.

Voters will decide Proposition 19 in November. The initiative would allow adults to cultivate marijuana and enable local governments to permit and tax marijuana sales.

Supporters say legalization would be a boon for state and local coffers.

But critics argue it would increase pot usage and crime. They also dispute any positive economic effects.

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